Get the latest tech news
2025 will likely be another brutal year of failed startups, data suggests
More startups shut down in 2024 than the year prior and a high volume of startup failures will continue, data from multiple sources.
However, AngelList CEO Avlok Kohli has a fairly optimistic take, noting that winddowns “are still very low relative to the number of companies that were funded across both years.” “The rapid capital infusion sometimes encouraged high burn rates and growth-at-all-costs mentalities, leading to sustainability challenges as markets shifted post-pandemic,” he noted. “And essentially what this says is that every startup sector has seen shutdowns and none vastly outperformed, which gives support to the theory that the main cause of the increase is macro-economic, i.e. interest rate changes and the lack of available venture funding in 2023 and 2024.”
Or read this on TechCrunch