Financial Times: Start-up failures rise 60% as founders face hangover from boom years


The article is free and available to the public, but FT limits the ability to copy/paste/share etc…

The article is based on data provided by Carta, a 1,600-employee described by wiki as follows
“specializes in capitalization table management and valuation software. The company digitizes paper stock certificates along with stock options, warrants, and derivatives to allow companies, investors, and employees to manage their equity and track company ownership.”

https://www.ft.com/content/2808ad4c-783f-4475-bcda-bddc0299095e

My general impression is that this is a good thing (long overdue.)

During the free money era too many hair-brained schemes got started and funded.

They were a waste (misallocation) and the start-ups, some good, some bad, failing at high rates is the inevitable result as sanity returns.

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The article above comes from data by Carta which focuses on tech start-ups.

In a broader sense, here are some trends in non-tech, non-Charta start-ups. As you can see, there are a lot of them.