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Bloomberg Businessweek

A VC Pulse Check for Second Half of 2023

Jul 5, 2023
06:43
Snipd AI
Discussions include the challenges of securing venture funding, concerning data point on companies' runway, emergence of two classes of startups, collapse of SVB, funding landscape for AI firms, and decline in seed funding's consequences on future unicorns.
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Podcast summary created with Snipd AI

Quick takeaways

  • A third of tech startups have less than six months of cash left, posing a challenge in securing venture funding.
  • Investors are interested in infrastructure companies that power the AI industry, leading to substantial investments.

Deep dives

Tech Startups Facing Cash Crunch

According to a recent report by Crunchbase, around a third of tech startups have less than six months of runway left in terms of cash. This shortage of funds poses a significant challenge for these companies, especially when venture funding is hard to come by. On the other hand, there is a similar percentage of startups that have over 24 months of runway, indicating a division between companies that are managing their cash well and those that are struggling. This situation may lead to an increase in mergers and acquisitions as startups seek stability.

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