Tech Start-Ups Face Financial Ruin in Challenging Year

Many once-promising tech start-ups are running out of time and money, leading to a wave of bankruptcies and shutdowns. After years of cutting costs to stave off collapse, these companies are now facing the harsh reality that investors are no longer interested in promises. Venture capital firms are deciding which young companies are worth saving and urging others to shut down or sell. The industry has seen an astonishing cash bonfire, with companies like WeWork, Olive AI, Convoy, and Veev filing for bankruptcy or shutting down. The losses are difficult to track as private tech companies are not required to disclose when they go out of business or sell, but approximately 3,200 venture-backed U.S. companies have gone out of business this year, raising $27.2 billion in venture funding. The flood of money invested in start-ups over the last decade is expected to result in more drastic losses as the industry faces a difficult year.