Startups’ Painful Path to Extend Runway: The Wave of Layoffs

startup business
Summary

  • Investors and venture capitalists’ statements or gestures of being selective in placing their money make the startup industry nervous. Data shows more startups are laying off.
  • Layoff seems inevitable in startup efficiency strategies as salary is one of the biggest expenses in many startups besides promotions and technology development.
  • Startups with certain business models, such as business-to-consumer (B2C), might experience bigger pressure during funding winter. Meanwhile, large startups or big tech are believed to be less likely to collapse than medium-sized startups because they are more likely to receive rescue assistance from the authority. Some said, some companies are just "too big to fall.”
  • Global venture funding to startups is projected to decline substantially.

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