More than 50,000 startups in the U.S. are at risk of high capital shortage | Hacker News Reader

More than 50,000 startups in the U.S. are at risk of high capital shortage

businessinsider.com

36 pointssaeedjabbar21 comments

Um, what is with these examples?

> Recur, an NFT startup once valued at more than $300 million, decided to shut down recently. And a tiny edtech Web3 startup called 101 also called it quits.

NFTs and Web3 were the biggest bubbles of the pandemic boom, obviously they’re popping. Did these companies ever expect to turn a profit?

> NFTs and Web3 were the biggest bubbles of the pandemic boom

NFTs and Web3 were the biggest scams of the pandemic boom

If those are representative of the sorts of businesses that are in that 50,000 then this strikes me as being a normal and good correction.

This article would be easier to believe if their two examples weren't laughable Web3/Crypto products. It's also a bit change they're comparing 2016 and 2020 values - funding dropping to 2020 levels doesn't really seem like major cause for alarm, to me.

> Participation has dropped from more than 550 deals and a quarterly peak of nearly $50 billion in 2021 to fewer than 200 deals and a quarterly peak of around $15 billion in 2023, Stanford wrote.

> As IVP's Tom Loverro so presciently pointed out back in January: Late 2023 and 2024 for startups will make the 2008 financial crisis "look quaint for startups."

I really hope that’s an exaggeration, but the funding trends do not look good.

Will no one think of the poor VCs!

The funding environment is fantastic still if you’re building a product and company that provides real people, real value. Creating a poor knockoff of pre-existing financial assets and marketing it as “revolutionary” is not creating real value for real people.

> if you’re building a product and company that provides real people, real value

Ah shoot…this old thing again.

And the IPOs in 2023/2024 will make up for it

The article provides no historical context. Startups are risky and fail all the time. Are more startups than normal failing? How many startups can cut back and survive without more funding?

ITA: Sensationalist takes on the startup ecosystem driven by examples of NFT and web3 startups failing.

Move along.

“Recur, an NFT startup”

Ok lets leave it at that.

How does that compare to the average at risk of high capital shortage?

50,000, not 50,00

Fixed

https://archive.is/SJ9zf

This time we need to print more money for too small to fail.

In other news, it's Monday.

Whoo-hoo! We get to buy IP on the cheap!

We better bail them out, innovation must be nurtured.

I assume this is a joke. I don't get it, but it must be a joke.

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