There’s nonetheless excellent news on the market for software program startups

The 2022 startup market may really feel like a slowly unfolding train wreck, however there’s excellent news to be discovered — offered you might be prepared to take a longer-term perspective.

Certain, startup layoffs are spiking, venture capital is slowing, and the stock market is a hot mess. Beneath every drumbeat of negativity, nonetheless, there’s extra positivity than you may count on. And, extracting another nugget from the recent Battery Venture quarterly cloud update, the doomsayers are ignoring historical past.

So this nice weekend, let’s discover the sunshine amid the clouds. Get it? Clouds. OK, no extra SaaS dad jokes. To work:

Founders, right here’s the nice software program information

The excellent news is a variation of the unhealthy information and is commonly constructive because of historic comparisons. Certain, that is excellent news of a kind, nevertheless it’s welcome all the identical:

  • The Dangerous Information: Startup layoffs are spiking.
  • The Good Information: Far lower than in early 2020.

As Homebrew’s Hunter Walk noted lately on his private weblog, startup layoffs hit an area most final month, reaching 16,000 and alter, per the Layoffs.FYI tracker. On condition that the identical knowledge service recorded successfully zero startup layoffs throughout the Q3-This fall enterprise growth, the determine is unhealthy. However! It’s additionally far much less unhealthy than the injury startups endured in early 2020.

For instance, startup layoffs reached almost 10,000 in March 2020. After which for months, they stayed sizzling, with greater than 25,000 recorded in each April and Could of the identical 12 months. Simply 70 particular person startup layoff occasions had been famous by Layoffs.FYI in Could 2022, far fewer than the greater than 100 per 30 days recorded from March via Could 2020.

Issues are worse than they had been in late 2021 from a startup staffing lower perspective, however we’re hardly setting data right here, even wanting simply at current knowledge.

  • The Dangerous Information: Enterprise capital is slowing.
  • The Good Information: From traditionally file ranges.

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