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š Startup Failures Expected to Climb
Liam Gill
January 28, 2025
In partnership with
News of the Day
More startups shut down in 2024 than the year prior, with Carta reporting a 25.6% increase in closures and AngelList noting a 56.2% jump, largely attributed to the overfunding of companies in 2020 and 2021. Many startups faced unsustainable burn rates, inflated valuations, and a lack of product-market fit, leaving them unable to secure further funding amidst rising interest rates and tighter venture capital markets. Early-stage startups, particularly in enterprise SaaS and consumer sectors, were hit hardest, with pre-seed and seed-stage closures making up 74% of failures. Experts predict 2025 will continue to see high shutdown rates as companies grapple with the fallout from the funding frenzy.
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ā Aadit Sheth (@aaditsh)
3:33 PM ā¢ Jan 27, 2025
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Onwards and Upwards,
