50% increase in startup closures

https://www.moneycontrol.com/news/technology/from-gomechanic-to-zestmoney-why-thousands-of-startups-shutdown-in-2023-11953691.html

Like layoffs.fyi, is there any website that tracks startups that shut down on a monthly basis?

- Start-up failures in the US have surged by 60% over the past year as founders deplete funds raised during the 2021-22 tech boom, risking millions of jobs and potential economic spillover. - Data from Carta shows a sharp rise in start-up shutdowns, with 254 venture-backed clients going bust in Q1 2023, a rate over seven times higher than in 2019. - High-profile casualties include Tally, Caffeine, Olive, Convoy, and WeWork, all struggling to secure necessary funding amid a challenging financial environment. - The rise in bankruptcies is attributed to inflated valuations and misaligned incentives during the boom years, with VC investment and venture debt plummeting post-Silicon Valley Bank collapse. - Despite a bleak outlook for many sectors, investment in AI start-ups is booming, with three-quarters of Kruze's $2bn raised in 2024 going to AI ventures, highlighting a shift in VC focus. Source: [Financial Times](https://www.ft.com/content/2808ad4c-783f-4475-bcda-bddc0299095e)

Hi folks, I'm Kashish, the CEO of EquityList and Founder of Cloud Capital which I run as a solo GP. A little bit about what we do: EquityList is a full-stack equity management platform by AngelList India. Companies across India, US and Singapore use EquityList to manage their cap table, stock options (ESOP/SAR), shareholders, and related compliances. Managing equity for 10k+ stakeholders, 250+ companies and ~$1B in stock options. Cloud Capital has deployed $8M+ in 55+ startups such as Airmeet, Rupifi, Orange Health, DevRev, ZET (OneCode) and others. I've also angel invested in startups such as OSlash, Atlys, Chronicle, Even Healthcare and others. Excited to do this AMA, and look forward to answering any of your questions about ESOPs, cap table management, investing, entrepreneurship, and more! LinkedIn: https://www.linkedin.com/in/kashisharma

-Online brands are expanding offline to achieve scale -Late stage startups are gearing towards profitability earlier than planned -Biz models built on behavior during Covid are struggling (like edtech) -Startups which got funded due to TikTok ban are struggling -Finfluencers are soon expected to struggle -Credit Fintech w/o NBFC license is a struggle -Very few consumer content startups frm India are seeing scale and profitability -RMG is struggling due to regulations -India focused creator economy startups finding it difficult to scale -PLG led Indian SaaS startups not able to cross $20M ARR -Some VCs finding it tough to raise without DPI -Public markets thrashing innovative/vanity metrics of pvt VC funded cos. and their pvt market valuations -Series B and beyond is tough, down round/flat round is now common - Deals happening at single digit ARR multiple for SaaS valuations - Web3 startups not getting funded - Most GenAI startups not able to build any defensibility - Most B2B Commerce startups are not able to increase gross margins or reduce NWC - CACs are ever increasing - Compliance issues at many startups - Layoffs to continue - startups which got funded in 2021, will soon be out of runway - no liquidity event for vested ESOPs in most Indian startups - secondaries happening at 35% discount in some cases - deal closure times have become 2x - less FOMO amongst VCs - More instances of M&A falling through

There’s now a list of 4-6 startups that have shut down and announced closure in December. Why is this happening

A lot of our lack of optimism comes from the above. 1/4th the funding in 2023 vs 2021!