2023 Was Bad for Startups With Bankruptcies, Lower Valuations
- Rising interest rates hit the industry hard; job cuts followed
- Silicon Valley is reeling as some 543 startups have shut down
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It’s been a brutal year for startups, with more companies struggling to raise money and hundreds shutting down altogether, according to new data.
So far in 2023, 19% of all startup funding rounds raised money at a lower valuation for the company than they’d previously been awarded by investors. That’s up from just 5% in 2021, according to data from the equity management company Carta Inc.