Despite this trend, some startups have seen their valuations grow, including financial technology firms Bilt Rewards and DailyPay, sports entertainment company Minute Media, and AI chip startup Rebellions. Investors are also monitoring recent tech sector layoffs, with at least 17,000 U.S. tech workers losing their jobs last month. However, this figure is significantly lower than the over 65,000 U.S. tech workers who lost their jobs in January 2023.
Key takeaways:
- Venture capital funding for startups is expected to remain constrained in 2024 unless there is a surge in initial public offerings, according to Crunchbase.
- Many firms are struggling to raise new funds at their previous valuations, leading to 'down rounds' of funding, such as Andreessen Horowitz's $75 million round for Quora at a valuation far below its 2017 peak.
- Despite the overall trend, some startups like Bilt Rewards, DailyPay, Minute Media, and Rebellions have seen their valuations grow.
- Investors are cautious due to recent layoffs in the tech sector, with at least 17,000 U.S. tech workers losing their jobs last month, although this is significantly less than the 65,000 who lost their jobs in January 2023.