Venture-Backed Startups Going Bankrupt at Alarming Rate

Posted under: Fintech
Date: 2024-08-20
Venture-Backed Startups Going Bankrupt at Alarming Rate

Startup failures in the U.S. have jumped by 60% in the past year, threatening millions of jobs and potentially impacting the broader economy. Data from Carta shows that 254 venture-backed clients went bankrupt in the first quarter of 2024, a rate over seven times higher than in 2019. Notable casualties include Tally, valued at $855 million, and WeWork, which had raised $16 billion in debt and equity. This shutdown increase coincides with a slowdown in funding for early-stage AI startups, raising concerns about a potential tech bubble burst.

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