So things aren’t all “bad” in SaaS. Many Cloud leaders stock prices are way, way up in 2023, the Cloud platform leaders have re-accelerated, and leaders like Shopify are having close-to-record years.
But for many startups, the hangover from the Excesses of 2021 is a real and tough one.
And the latest Carta data here supports that. Startups shutting down are up 238% this year — already.
Now it sort of has to be that way. So, so many SaaS startups got funded in the Boom, and they just can’t all make it. In fact, Craft’s latest data from the presentation below has seen as many as 80% of Seed startups fail to raise a Series A.
So we’re working through this. But Be Kind. The shutdowns in 2023 have been at a record pace, and it’s only going to continue in 2024. The latest data from Pilot (see below) suggests even more startups will likely run out of runway in 2024. Hopefully, we’ll be through most of it by the end of 2024.
A related post here:
