In 2024, startup shutdowns in the U.S. surged to 966, up 25.6% from 769 in 2023, driven by the aftermath of excessive funding during 2020 and 2021. AngelList reported a 56.2% increase in winddowns, while Layoffs.fyi showed a decline in tech shutdowns, suggesting varied data interpretations. Experts indicate that as funding inflated during the boom years, the expected increase in shutdowns was a result of normalization. While precise numbers are elusive, industry leaders express cautious optimism, emphasizing the still low winddown rates relative to the total number of funded startups.
At the same time, Walker admitted that it's 'difficult' to estimate exactly how many more shutdowns there were, or will be.
AngelList CEO Avlok Kohli has a fairly optimistic take, noting that winddowns 'are still very low relative to the number of companies that were funded across both years.'
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