The situation is particularly dire for late-stage startups, as VCs are more reluctant to write large checks. This has led to a competitive scramble for capital among nearly 51,000 startups. Analysts predict that this trend will continue into 2024, with available capital remaining low until an exit market reappears. The impact of this capital strain is already evident, with startups such as Olive AI and Convoy shutting down and selling off their assets.
Key takeaways:
- VC funding for late-stage startups is at its lowest since 2018, with the average time between funding rounds getting longer.
- Many startups are struggling to secure funding, leading to some folding and selling off their assets.
- Analysts predict that the current state of VC funding will continue into the fourth quarter of 2023 and potentially into 2024.
- Highly valued startups like Olive AI and Convoy have recently shut down, potentially signaling a trend for other late-stage companies.