The 2022 startup market would possibly really feel like a slowly unfolding train wreck, however there’s excellent news to be discovered — offered you might be keen to take a longer-term perspective.
Certain, startup layoffs are spiking, venture capital is slowing, and the stock market is a hot mess. Beneath every drumbeat of negativity, nevertheless, there’s extra positivity than you would possibly count on. And, extracting yet another nugget from the recent Battery Venture quarterly cloud update, the doomsayers are ignoring historical past.
So this positive weekend, let’s discover the sunshine amid the clouds. Get it? Clouds. OK, no extra SaaS dad jokes. To work:
Founders, right here’s the great software program information
The excellent news is a variation of the dangerous information and is usually constructive due to historic comparisons. Certain, that is excellent news of a type, but it surely’s welcome all the identical:
- The Dangerous Information: Startup layoffs are spiking.
- The Good Information: Far lower than in early 2020.
As Homebrew’s Hunter Walk noted lately on his private weblog, startup layoffs hit a neighborhood most final month, reaching 16,000 and alter, per the Layoffs.FYI tracker. Provided that the identical knowledge service recorded successfully zero startup layoffs through the Q3-This fall enterprise growth, the determine is dangerous. However! It’s additionally far much less dangerous than the injury startups endured in early 2020.
For instance, startup layoffs reached almost 10,000 in March 2020. After which for months, they stayed scorching, with greater than 25,000 recorded in each April and Might of the identical yr. Simply 70 particular person startup layoff occasions have been famous by Layoffs.FYI in Might 2022, far fewer than the greater than 100 per thirty days recorded from March by Might 2020.
Issues are worse than they have been in late 2021 from a startup staffing reduce perspective, however we’re hardly setting data right here, even trying simply at latest knowledge.
- The Dangerous Information: Enterprise capital is slowing.
- The Good Information: From traditionally report ranges.