The number of startup bankruptcies in the United States increased by 60% over the year. Company founders were left without the funds raised during the 2021-2022 tech boom, notes the Financial Times. In 2019, the number of bankruptcies increased sevenfold.
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In 2024, the number of startup bankruptcies in the United States will increase by 60% compared to 2023. The Financial Times writes about this based on data from the Carta company.
In the first quarter of 2024, 254 Carta clients filed for bankruptcy. The company started keeping statistics in 2019: compared to this year, the number of bankruptcies has increased sevenfold.
Startup founders have exhausted all the funds they raised during the tech boom during the COVID-19 pandemic, Morgan Stanley said. The increasing number of startup bankruptcies threatens the stability of the economy, as US startups employ around 4 million people, experts said.
During the tech boom, funds invested significant sums in startups, thereby increasing their market value, noted Kruze Consulting vice president Healy Jones. Now, most startups working in the field of AI development can count on investments, he added.
Author:
Kirill Bilyk
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
