More than 50,000 startups in the U.S. are at risk of high capital shortage

https://www.businessinsider.com/startup-wave-shutdowns-late-2023-vc-2023-8

by saeedjabbar • 3 years ago

36 21 3 years ago

Participation has dropped from more than 550 deals and a quarterly peak of nearly $50 billion in 2021 to fewer than 200 deals and a quarterly peak of around $15 billion in 2023, Stanford wrote.
As IVP's Tom Loverro so presciently pointed out back in January: Late 2023 and 2024 for startups will make the 2008 financial crisis "look quaint for startups."

I really hope that’s an exaggeration, but the funding trends do not look good.

retrocryptid2• 3 years ago

Will no one think of the poor VCs!

HPMOR• 3 years ago

The funding environment is fantastic still if you’re building a product and company that provides real people, real value. Creating a poor knockoff of pre-existing financial assets and marketing it as “revolutionary” is not creating real value for real people.

bradhe2• 3 years ago

if you’re building a product and company that provides real people, real value

Ah shoot…this old thing again.

mvkel• 3 years ago

And the IPOs in 2023/2024 will make up for it

retrocryptid2• 3 years ago

Whoo-hoo! We get to buy IP on the cheap!

slaw• 3 years ago

This time we need to print more money for too small to fail.

breckenedge• 3 years ago

Um, what is with these examples?

Recur, an NFT startup once valued at more than $300 million, decided to shut down recently. And a tiny edtech Web3 startup called 101 also called it quits.

NFTs and Web3 were the biggest bubbles of the pandemic boom, obviously they’re popping. Did these companies ever expect to turn a profit?

andsoitis• 3 years ago

NFTs and Web3 were the biggest bubbles of the pandemic boom

NFTs and Web3 were the biggest scams of the pandemic boom

JohnFen• 3 years ago

If those are representative of the sorts of businesses that are in that 50,000 then this strikes me as being a normal and good correction.

gabrielsroka• 3 years ago

50,000, not 50,00

saeedjabbar• 3 years ago

Fixed

efitz• 3 years ago

In other news, it's Monday.

hindsightbias• 3 years ago

We better bail them out, innovation must be nurtured.

HWR_14• 3 years ago

I assume this is a joke. I don't get it, but it must be a joke.

gersh• 3 years ago

The article provides no historical context. Startups are risky and fail all the time. Are more startups than normal failing? How many startups can cut back and survive without more funding?

archo• 3 years ago

https://archive.is/SJ9zf

avree• 3 years ago

This article would be easier to believe if their two examples weren't laughable Web3/Crypto products. It's also a bit change they're comparing 2016 and 2020 values - funding dropping to 2020 levels doesn't really seem like major cause for alarm, to me.

spokeonawheel• 3 years ago

How does that compare to the average at risk of high capital shortage?

bradhe2• 3 years ago

ITA: Sensationalist takes on the startup ecosystem driven by examples of NFT and web3 startups failing.

Move along.

gumballindie• 3 years ago

“Recur, an NFT startup”

Ok lets leave it at that.

More than 50,000 startups in the U.S. are at risk of high capital shortage

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