Friday, 1 March 2024

Tech layoffs stay high as extended runways reach their limit

Plus, 6 reasons for optimism in LatAm

March 1, 2024

Hi, Agen. Will the layoffs ever end? Maybe — but it looks like the time isn’t just yet. After tailing off a bit in December, U.S. tech job cuts picked up again in January, our data shows. February also brought a high number of mass layoffs, with both large-cap companies and startups trimming staff. Plus, funding to Black founders fell dramatically in these regions, and why these investors remain bullish on Latin America.

๐Ÿช“ Tech layoffs stay high as extended runways reach their limit

In recent weeks, we’ve seen a succession of prominent tech companies and startups make deep cuts. In fact, well over 17,000 U.S. tech workers lost their jobs in January, and cuts continued into February.

See also: The Crunchbase Tech Layoffs Tracker

๐Ÿ“‰ Funding to Black founders fell dramatically in these regions

The Bay Area, Atlanta, Boston, New York and Los Angeles have traditionally been some of the larger markets for Black and minority entrepreneurship and startup investment, but Crunchbase data shows those regions saw dramatic declines in funding to Black-founded startups — sometimes even worse than the national decline.

๐ŸŒ… 6 reasons for optimism in LatAm

Latin America was the fastest-growing venture capital market in the boom of 2021, but has since seen investment decline drastically. Investors Gina Gotthilf and Tomas Roggio share six reasons why they remain optimistic — and keep backing LatAm companies — despite the region’s two-year startup winter.

๐Ÿงพ Startup valuation vs. round pricing: What’s the difference?

Somewhere in the past decade, in an era of easy money and seemingly endless tech growth, investors stopped thinking seriously about valuation — all that mattered were comps based on trends in similar transactions, writes guest author Dan Gray. How do we get back to a more disciplined approach?

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