The 60% surge in US startup failures over the past year, fueled by the depletion of funds raised during the 2021-2022 tech boom, is threatening millions of jobs and could have far-reaching economic consequences. Despite the AI hype, venture-backed companies continue to face challenges. Carta’s data reveals a concerning trend, with 254 of its clients going bankrupt in the first quarter. Given that venture-backed companies employ 4 million Americans, as estimated by Morgan Stanley, the implications of this trend are significant.
