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Updated on June 26, 2022 4:42 pm

There’s nonetheless excellent news on the market for software program startups – TechCrunch


The 2022 startup market would possibly really feel like a slowly unfolding prepare wreck, however there’s excellent news to be discovered — supplied you might be keen to take a longer-term perspective.

Certain, startup layoffs are spiking, enterprise capital is slowing, and the inventory market is a scorching mess. Beneath every drumbeat of negativity, nevertheless, there’s extra positivity than you would possibly count on. And, extracting another nugget from the latest Battery Enterprise quarterly cloud replace, the doomsayers are ignoring historical past.

So this high-quality 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 unhealthy information and is commonly constructive due to historic comparisons. Certain, that is excellent news of a type, however it’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 Stroll famous not too long ago 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 in the course of the Q3-This autumn enterprise growth, the determine is unhealthy. However! It’s additionally far much less unhealthy than the harm startups endured in early 2020.

For instance, startup layoffs reached practically 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 12 months. Simply 70 particular person startup layoff occasions had 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 had 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 file ranges.

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