2025 will likely be another brutal year of failed startups, data suggests

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Dori Yona, CEO and co-founder of SimpleClosure, a startup that aims to automate the shutdown process, believes that in 2021, we saw a large number of startups receiving seed funding “probably before they were ready.

Most startups tend to shut down when the coffers are completely dry, though some see the writing on the wall early enough to give a bit back to their investors.“The majority of startups (60%) that fail don’t have enough capital left to return to investors,” Yona said.“Founders that do plan on returning funds have an average $630,000 of investments left — about 10% of total capital raised, on average.

Yona also predicts the rate of startup closures will not slow down anytime soon.“Tech zombies and a startup graveyard will continue to make headlines,” Yona said.“Despite the crop of new investments, there are a lot of companies that have raised at high valuations and without enough revenue.

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Article Details

Author / Journalist: Mary Ann Azevedo

Category: StartupsBusiness

Markets: United States

Topics: Carta Angellist Startups Exclusive Failures SimpleClosure

Source Website Secure: Yes (HTTPS)

News Sentiment: Positive

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-26 @ 16:00:00 (1 days ago)

News Timezone: GMT -5:00

News Source URL: techcrunch.com

Language: English

Article Length: 1149 words

Reading Time: 7 minutes read

Sentences: 38 lines

Sentence Length: 31 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © TechCrunch

News ID: 25456957

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