Startups in crisis: frightening figures for the third quarter
It's not really the time to want to raise funds and all stadiums are concerned.
A new study by Carta, a platform for managing its assets and the equity of its employees on a small scale, worries about the future of startups across the Atlantic. Indeed, we discover that the amount raisedby start-ups in the United States in the third quarter of 2022 is the lowest compared to this same period in the previous four years. The total number of seed rounds is also in freefall: compared to 2,139 made last year, the figure is only 1,186 today. From more than fifty billion dollars combined, we thus go to about thirty billion dollars. The cold shower.
Several factors could explain this tumble. Starting with investors who have been increasingly hesitant since the beginnings of generalized inflation, which is now considered to be affecting the five continents. With this, many players in the sector have chosen to freeze hiring to focus again on their core business. The GAFAMeven went so far as to set an example, with Tim Cook himself confirming that they are calming down the recruitment game. In France too, the situation is similar to the American crisis, as confirmed by another scenario at Luko.
Silicon Valley monopolizes the top of the podium
The statistics collected by Carta also allow us to understand that, there too, as in France, a strong territorial disparitytouches the country of Uncle Sam, Thus, it is without great surprise California which gathers a majority of the investments carried out since the beginning of the year with 47.8% of the cake. New York is just behind with 12.4%, followed by Delaware and its very advantageous tax legislation (3.3%).
It must be said that the main unicorns of the moment are often based on the West Coast. The ecosystem is particularly encouraging with accelerators like Y Combinator and specialized discovery platforms like Product Hunt. The Salesforce Tower, sitting proudly atop the San Francisco skyline, is the perfect example of long-term local success.
Loss of value also for employees
Among the other significant numbers noted by Carta, we find also a decrease in the unlocking of options among employees. From 46% of bonds released in the third quarter of 2021, we are only at 35% today.
Getting your teams to participate in the capital is a key solution for motivating the troops and developing its growth. But in times of recession, therefore, the tendency seems rather to be cautious…