Financing of startups has decreased by more than 30%

Financing of startups, after setting a historical record in 2021, faced a decrease of more than 30% in 2022, and the largest decrease occurred in the second half of 2022

According to Iran digital economy annotation, Max Investment Holding has published a report titled “The current state of the startup ecosystem in the world” in February 2024.

This report was compiled based on a research by “StartupBlink” about the current state of the global startup ecosystem along with a review of key trends and events of this ecosystem in the last one year and presented in four headings: the state of the global economy of startups, the trends of the startup industry, social trends and the geopolitical situation. 

The decline in startup funding, the collapse of Silicon Valley Bank, and IT layoffs are part of the first chapter of this report.

In the first chapter of this report, it is stated that the increase in inflation and the subsequent rapid increase in interest rates have greatly affected startups, and unlike the year 2021, when a bubble was formed in the valuation of startups, now the valuation of a large number of listed and non-listed startups is It is a re-evaluation.

Some of these startups have even lost up to 90% of their market value, and this in itself shows the depth of the current recession and the reluctance to invest in high-risk assets.

In the continuation of this report, it is stated that the financing of startups, after recording a historical record in 2021, has faced a decrease of more than 30% in 2022. Although the figure of financing of startups is still higher than in 2020 and 2019, the biggest decrease is in the second half. 2022 has occurred, which indicates a growing recession in the investment ecosystem.

200 thousand people adjusted

In another part of this report, the number of retrenched forces in the information technology sector is mentioned and it is said that the retrenchment reached 200 thousand people in the first four and a half months of 2023, and at the same time, it exceeded the figure of 164 thousand and 591 retrenched forces in the whole year of 2022.

Examining the social approaches affecting the activity of startups in the world, examining the most important trends in the industry are also part of this report, the rise of artificial intelligence and the rise of startups in the field of climate, etc. are also among the topics discussed in this report.

In the last chapter of this report, geopolitical approaches and their impact on the startup ecosystem have been challenged, and issues such as anti-globalization trends, separation of ecosystems, and the rise of regional hubs are among the other issues discussed in this report.