What the numbers say: The number of new startups created has steadily declined each year since 2020. Between 2020 to 2023, the number of new startups created in the U.S. declined by 86%. Israel and the EU have seen an even higher decline of 89% and 87%, respectively. What happened: Crunchbase reckons that the year-on-year slump may have been started due to the outbreak of the COVID-19 pandemic. The global economic downturn, political instability, and lack of early-stage capital may have further hindered startup formation. Where to see the impact: The low startup formation numbers provide a silver lining for aspiring entrepreneurs, as they will likely face lesser competition and can focus on the untapped needs of customers. However, the lack of funding means that founders will have to rely on bootstrapping the company with their own funds and gear the company for profit. |
