Start-up failures in the US have jumped by 60 per cent over the past year, as founders run out of cash raised during the technology boom of 2021-22, threatening millions of jobs in venture-backed companies and risking spillover to the wider economy.
According to data from Carta, which provides services to private companies, start-up shutdowns are rising sharply, even as billions of dollars of venture capital gushes into artificial intelligence outfits.
Carta said 254 of its venture-backed clients had gone bust in the first quarter of this year. The rate of bankruptcies today is more than seven times higher than when Carta began tracking failures in 2019.
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