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Is the startup boom over? Last year saw the smallest number of venture capital investments in startups since 2016, and dozens of startups have kicked off the new decade by slashing jobs. Add to that a disastrous IPO for Casper Sleep and the failure of nine- and ten-figure businesses like Brandless and Essential—the glory days of startups may be over, for now.

Read more on The New York Times

Contributions

  • Is the start up boom over? New York Times:

    "Over the past decade, technology start-ups grew so quickly that they couldn’t hire people fast enough.

    Now the layoffs have started coming in droves. Last month, the robot pizza start-up Zume and the car-sharing company Getaround slashed more than 500 jobs

    Is the start up boom over? New York Times:

    "Over the past decade, technology start-ups grew so quickly that they couldn’t hire people fast enough.

    Now the layoffs have started coming in droves. Last month, the robot pizza start-up Zume and the car-sharing company Getaround slashed more than 500 jobs. Then the DNA testing company 23andMe, the logistics start-up Flexport, the Firefox maker Mozilla and the question-and-answer website Quora did their own cuts.

    “It feels like a reckoning is here,” said Josh Wolfe, a venture capitalist at Lux Capital in New York.

    The signs have been there for a while now that things were turning. Softbanks Vision Fund just had a big write down and the IPO market and new funding is losing steam. A recession might be good for moral hazard and ensuring higher quality start ups in the future. The crash at the end of the dotcom craziness was probably a good thing.