Investment Monitor estimates that four out of five startups are at risk of failure in 2023.
January Ventures's own survey backed the findings, as 81% of early-stage startups evaluated had less than 12 months of cash runway by the end of Q3 last year.
- Upfront Ventures estimates that over half of the 5,000 portfolio startups it backed over the last four years are at risk of shutting operations.
- Venture capitalist Tom Loverro holds a very pessimistic view of the situation, predicting a worse environment for startups than the 2008 financial crisis with a "mass-extinction event" on the horizon.
- Global VC funding deployment dropped by a third in 2022, affecting growth-stage startups the most.
- GlobalData analyst Divya Dubey sees the scenario in a slightly optimistic manner, anticipating an uptick in VC activity in 2023, although it is unlikely to equal the record levels set in 2021.
