There’s More Good News for Software Startups

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Startup 2022 the market may seem slowly unfolding wreckage of a trainbut there is good news as well—provided you are prepared to look at the situation in the long term.

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Of course, Startup layoffs skyrocket, venture capital is slowing downand the stock market is a hot mess. However, behind every drumbeat of negativity lies more positivity than one might expect. And, extracting another nugget from recent Battery Venture Quarterly Cloud Updatepredictors of doom ignore history.

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So, this beautiful weekend, let’s find the sun among the clouds. Take it? Clouds. Okay, no more SaaS jokes. Work:

Founders, here’s some good software news

Good news is a subset of bad news and is often positive through historical comparisons. Of course this is good news. Sort, but still welcome:

  • The bad news: Startup layoffs are on the rise.
  • Good news: Much less than at the beginning of 2020.
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As Homebrew hunting trip marked recently on his personal blog, start-up layoffs hit a local high last month, reaching 16,000 with a change per Layoff tracker.FYI. Considering that during the Q3-Q4 venture boom, the same data service actually recorded zero start-up layoffs, the number is bad. But! It’s also far less severe than the damage done to startups in early 2020.

For example, the number of layoffs at startups reached almost 10,000 in March 2020. And then they stayed hot for months, with more than 25,000 layoffs recorded in April and May of that year. In May 2022, Layoffs.FYI noted just 70 individual start-up layoffs, far fewer than the more than 100 reported per month from March to May 2020.

In terms of staff cuts, startups are doing worse than at the end of 2021, but we are unlikely to set records here, even when looking only at the latest data.

  • The bad news: Venture capital is slowing down.
  • Good news: From historical record levels.

Credit: /

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