Y Combinator (YC), the world’s largest startup accelerator (incubator), told investment companies, “Don’t be fooled into thinking that VCs will continue to invest just because they keep meeting.” In addition, detailed survival strategies such as reducing costs within 30 days, setting a survival goal for 24 months, and modifying investment attraction plans were also delivered.
VC Lightspeed, which has invested in Snap, etc., has officially announced in public that the boom period of 10 years for startups is over.
In fact, Tiger Global and Softbank, the world’s first and second largest venture capitalists, are saving themselves by cutting their investment in the second quarter. Tiger Global recorded a loss of 43.7% from the beginning of this year to April.
Another e-commerce startup, Sracio, cut 20% of its staff after unsuccessful pre-IPO efforts. Gorilla, a German grocery delivery start-up, recently laid off about 320 employees, about half of its headquarters.
According to Layoff, which compiles the current status of startup restructuring around the world, 14,708 startups were laid off last month. This is a nearly four-fold increase from April (3703 people).
According to CB Insights, there were 143 IPOs worldwide in the first quarter of this year, the lowest level since 2016.
