Startup Resilience Amid Challenges: Carta’s Insight on the Low Closure Rate in the Tech Industry

Dec 20, 2023
< 1 minute read

Carta raises concerns about the increasing frequency of startup closures — and the graph does indeed look quite stark.

On the other hand, Carta observes 30,000 startups. At the peak rates of the third quarter, about 1,000 of them will close each year, which is 3%, a not-so-alarming mortality rate.

Or, from another perspective, they note that in 9 months, a whole 85 startups with investments over 10 million dollars have shut down. Yet, in Roundbook, I see 85 new startups with investments over 15 million dollars every two weeks.

In general, the numbers are not frightening, no matter how you look at it. A very small proportion of projects are closing.

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