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10 of the biggest startup shutdowns in 2023

Dec 29, 2023 - businessinsider.com
The article discusses the shutdown of over 3,200 startups in 2023, following a significant pullback in venture capital funding. This has been referred to as a "mass extinction event" for startups. The startups, which collectively raised $27 billion, had to close due to economic uncertainty and increased pressure from investors to improve their unit economics. Some startups were forced to sell at a major discount, while others filed for bankruptcy.

The article also provides a list of 10 of the biggest startups that shut down in 2023, including Hyperloop One, Olive AI, Convoy, Zeus Living, Recur, Zume, IRL, Wyre, Bitwise Industries, and Medly. These startups were backed by high-profile investors and had raised significant amounts of funding. However, they faced various challenges such as financial difficulties, tech issues, and market conditions that led to their shutdown.

Key takeaways:

  • About 3,200 startups failed in 2023 due to a significant pullback in venture capital funding and economic uncertainty.
  • These startups had collectively raised $27 billion and their shutdowns indicate a 'mass extinction event' in the startup industry.
  • Some of the biggest startups that shut down include Hyperloop One, Olive AI, Convoy, Zeus Living, Recur, Zume, IRL, Wyre, Bitwise Industries, and Medly.
  • Many of these startups faced financial difficulties, tech issues, or were found to have inflated user numbers, leading to their eventual shutdown.
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