Over 3,200 Venture-Backed U.S. Startups Have Failed in 2023

Data compiled by PitchBook for The New York Times reveals that approximately 3,200 private venture-backed U.S. companies have gone out of business this year, with a combined $27.2 billion in venture funding raised. PitchBook notes the data may not fully capture the extent of failures as it possibly undercounts the total and excludes high-profile public failures or acquisitions. Social media reactions range from disappointment to skepticism, with some users highlighting a lack of focus on cash flow and profitability among startups, and others comparing the current situation to the dot-com bust of the early 2000s, suggesting such a high number of failures is typical following an investment bubble.

Source: Craig Fuller