What the numbers say: Nearly 50% of the startups surveyed by Pilot had more than 12 months of cash runway. A third of the respondents expect the funding environment to recover by Q2 2024, giving them sufficient cash to sustain their business until then. However, the funding slowdown may concern 21% of the surveyed startups, which had less than six months of cash reserves and may have to take action to preserve cash. 
Where to see the impact: Startups in the survey were able to extend their cash reserves by cutting down on business travel, marketing, and office space. While cutting expenses was a priority, a third of the respondents bolstered their sales division, with another 33% keeping R&D a top priority to sustain operations during the downturn. Relevance: Most startup founders were optimistic about prospects in 2023, although many were concerned about growth due to a tough economic environment. Despite the challenging macroeconomic conditions, 57% of surveyed startups said they were extremely unlikely to conduct layoffs this year. Mid-sized startups were more likely to consider layoffs than smaller startups, per Pilot. | 