“The Mass Extinction Event for startups is under way,” a partner for a well-known venture capital firm warned in a recent article in the Wall Street Journal. Capital from venture investors and bank loans is “scarce and expensive” and “venture-backed startups are running out of money and facing hard choices”.
The numbers support this: venture capital funding in the first quarter of 2023 was only at 40% of the levels seen in the fourth quarter of 2021. But mass extinction?
