Skip to navigationSkip to content
DEEP CUT

Without intervention, 41% of startups will be out of cash within three months

A hill in San Francisco with "Do not enter" signs
REUTERS/Shannon Stapleton
Startups face an uphill battle.
  • Walter Frick
By Walter Frick

Executive editor

Published

Jeffrey Bussgang, a general partner at Flybridge Capital Partners, thinks of the startups in his portfolio on a 2×3 matrix. On the vertical axis, he asks, “Do they have cash to last at least 18 months?” He divides the horizontal access by how the pandemic has affected their business: positive, neutral, and negative.

Most tech startups around the world fall in the bottom left of Bussgang’s matrix—the danger zone—where, he says, they may need to cut costs by something like 60% to survive.

Enrich your perspective. Embolden your work. Become a Quartz member.

Your membership supports our mission to make business better as our team of journalists provide insightful analysis of the global economy and helps you discover new approaches to business. Unlock this story and all of Quartz today.

Membership includes:

こちらは英語版への登録ページです。
Quartz Japanへの登録をご希望の方はこちらから。