PYMNTS.com August 19, 2024
Startup failures in the U.S. have surged by 60% in the past year, posing a threat to millions of jobs and potentially impacting the wider economy.
Data from Carta, a provider of services to private companies, reveals that 254 venture-backed clients went bankrupt in the first quarter of 2024, a rate more than seven times higher than in 2019. Notable casualties include Tally, a financial technology company valued at $855 million, and desk rental company WeWork, which had raised $16 billion in debt and equity.
The rise in startup shutdowns comes as funding for early-stage AI startups slows, leading to concerns of a tech bubble burst.
The Financial Times reports that the funding slowdown is leading to a wave of...
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