Tech Startups Face Financial Turmoil and Uncertain Futures

Many once-promising tech startups are running out of time and money, leading to a collapse in the industry. Investors are no longer interested in promises and are deciding which companies are worth saving and urging others to shut down or sell. Approximately 3,200 private 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 startups over the last decade is expected to result in more drastic losses. The advertising profits seen by Facebook and Google have proven elusive for the next wave of startups, leading to failures in untested business models. Some companies are choosing to shut down before running out of cash, while others are stuck in "zombie" mode, surviving but unable to grow.