US Start-Up Failures Up by 60% Amid Founders' Hangover from Boom Years

Sunday, 18 August 2024, 21:37

US start-up failures have risen by 60% as founders face a significant hangover from the boom years. Cash raised during the technology surge of 2021-22 is dwindling, challenging venture-backed companies and threatening millions of jobs. The implications for the wider economy could be severe.
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US Start-Up Failures Up by 60% Amid Founders' Hangover from Boom Years

The Rise of US Start-Up Failures

US start-up failures have increased by 60% over the past year, mainly due to founders experiencing a hangover from the early 2021-22 boom.

Cash Dwindling in Venture-Backed Companies

  • Many start-ups are struggling as they run out of cash raised during the technology boom.
  • This trend threatens millions of jobs linked to these venture-backed companies.

Impact on the Wider Economy

  1. The potential spillover effects from these failures could risk greater economic instability.
  2. Investors are closely monitoring the situation as financial markets respond to this trend.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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