59 ms·
More than 50,000 startups in the U.S. are at risk of high capital shortage
- LapsangGuzzler 3y 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.
- retrocryptid 3y agoWill no one think of the poor VCs!
- HPMOR 3y agoThe 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.
- bradhe 3y ago> if you’re building a product and company that provides real people, real value Ah shoot…this old thing again.
- mvkel 3y agoAnd the IPOs in 2023/2024 will make up for it
- retrocryptid 3y agoWhoo-hoo! We get to buy IP on the cheap!
- slaw 3y agoThis time we need to print more money for too small to fail.
- breckenedge 3y agoUm, 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?
- gabrielsroka 3y ago50,000, not 50,00
- saeedjabbar 3y agoFixed
- efitz 3y agoIn other news, it's Monday.
- hindsightbias 3y agoWe better bail them out, innovation must be nurtured.
- HWR_14 3y agoI assume this is a joke. I don't get it, but it must be a joke.
- gersh 3y agoThe 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 3y agohttps://archive.is/SJ9zf https://archive.is/SJ9zf
- avree 3y agoThis 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 3y agoHow does that compare to the average at risk of high capital shortage?
- bradhe 3y agoITA: Sensationalist takes on the startup ecosystem driven by examples of NFT and web3 startups failing. Move along.
- gumballindie 3y ago“Recur, an NFT startup” Ok lets leave it at that.