3,200 startups failed this year

Pitchbook data was analyzed by The New York Times and Entrepreneur. They found that the startups that failed raised a total of more than $27 billion in venture capital funding. This is almost the same as the $29.8 billion total investment in startups in the third quarter of 2023.

One of the main reasons is that it is increasingly difficult for companies to attract investment. Venture capital funding for startups decreased from $183.9 billion to $104.5 billion between the first nine months of 2022 and the same period this year.

Tom Loverro, general partner of IVP, eloquently described this period as a “mass extinction” of startups.