WeWork, Olive AI, Convoy, and Veev all filed for bankruptcy or shut down only weeks after raising more than a billion dollars in funding. The filing was fuelled by the great losses incurred by a tech start-up collapse, which the sector is only beginning to experience. These start-ups had initially postponed mass failure by cutting costs over the previous two years, but based on investor decisions, many of them are facing a shortage of time and money. Although private tech companies are not mandated to disclose business failures or sales, approximately 3,200 venture-backed U.S. companies went out of business this year, raising $27.2 billion in venture funding. An additional 87 companies on the Carta platform raised at least $10 million and have since shut down this year. One start-up that grew rapidly in the past, Hopin, sold its main business for a very low price after having raised over $1.6 billion. Furthermore, the financial technology start-up Plastiq, the real estate start-up Zeus Living, and the scooter company Bird all experienced failure after raising large sums of investment. Venture capital firms have suggested that this year has been the most difficult for start-ups in at least a decade. Although failure is seen as par for the course, investors expect the losses to be quite extensive due to the enormous amount of invested cash over the last decade. Despite the gloomy forecast for tech start-ups, companies dedicated to helping founders close down their business have become popular following the wave of recent failures.
From Mythical Creatures to Undead: How Tech Start-Ups Falter
Elissa began receiving threatening messages early last year from a person calling themselves “Instamodelfan” targeting her daughter’s Instagram account. Despite having over 100,000 followers, the account has been under scrutiny for potentially exploiting children in exchange for money. However, the issue runs deeper than that. Research from The New York Times found that the platform […]Read More
Instagram maintains the 13-year-old minimum age for accounts, but parents can take control, largely for their daughters’ ambitions to become influencers. Parents initiate their child’s modeling career or gain favor from clothing brands, but a dark subculture emerges, controlled by men attracted to minors, as per The New York Times. The emergence of mom-run profiles […]Read More
Beijing’s Networks Expanding Hacking Efforts China has spread its hacking reach with new tools that exploit computer vulnerabilities and a network of contracted vendors. The large scale of China’s hacking operations poses a significant threat, with the FBI reporting China’s hacking program to be larger than all major nations combined. The U.S. has tracked consistent […]Read More