![]() ‘Unfortunately, we had funding challenges, just like I think the rest of the environment, particularly private companies, in the current macro environment,’ said Johnson. “CEO Tony Johnson and Chief Financial and Operating Officer Kyle Kuvalanka told Fierce Biotech that the company is closing up shop after failing to secure additional financing. These challenges were compounded by broader macroeconomic pressures, making it difficult for the startup to secure additional funding. For example, one of its clinical trials generated disappointing results last year and was ultimately canceled. However, Goldfinch faced a number of difficulties in the years that followed. The company showed promise in its earlier days, securing $100M in Series B funding back in 2020. ![]() Goldfinch Bio - a biotech focused on kidney treatment - closed its doors at the end of January 2023. Title: Goldfinch Bio falls from the sky after failing to find a path forward for kidney treatments This analysis is not exhaustive of all startup failures that occurred over the period. Read on for the detailed post-mortems of 10 startups that shut their doors in Q1’23. While one of these startups cited safety concerns as the reason for its closure, reports indicated that recent economic pressures were likely to blame for the clocks running out for the others. Health tech took a major hit in Q1’23, accounting for some of the quarter’s costliest startup failures (by total funding): Goldfinch Bio, Mindstrong, Aristea Therapeutics, and CODA Biotherapeutics. We saw a significant number of startup failures in Q1’23, and in the face of these latest developments, this trend may accelerate. While in the past they might’ve been able to turn to venture debt to stave off failure, March’s Silicon Valley Bank crisis has left investor-less startups with even fewer options. Venture funding fell for the fifth straight quarter in Q1’23, dropping to its lowest level since 2019.Īmid this contraction, startups are finding it increasingly difficult to secure their next round of funding. Startup Failure Post-Mortems 2023 (Q1’23 Update) Original 50 Startup Failure Post-Mortems ().Startup Failure Post-Mortems 2014 First Update ().Startup Failure Post-Mortems 2014 Second Update ().Startup Failure Post-Mortems 2015 First Update ().Startup Failure Post-Mortems 2015 Second Update ().Startup Failure Post-Mortems 2016 First Update ().Startup Failure Post-Mortems 2016 Second Update ().Startup Failure Post-Mortems 2016 Third Update (11/8/16).Startup Failure Post-Mortems 2017 First Update (2/10/17).Startup Failure Post-Mortems 2017 Second Update (6/9/17).Startup Failure Post-Mortems 2017 Third Update (10/31/17).Startup Failure Post-Mortems 2018 First Update (4/17/18).Startup Failure Post-Mortems 2018 Second Update (8/13/18).Startup Failure Post-Mortems 2018 Third Update (11/14/18).Startup Failure Post-Mortems 2019 First Update (2/28/19).Startup Failure Post-Mortems 2019 Second Update (6/19/19).Startup Failure Post-Mortems 2019 Third Update (10/16/19).Startup Failure Post-Mortems 2020 First Update (1/21/20).Startup Failure Post-Mortems 2020 Second Update (8/18/20).Startup Failure Post-Mortems 2021 First Update (2/1/21).Startup Failure Post-Mortems 2021 Second Update (6/16/21).Startup Failure Post-Mortems 2021 Third Update (9/28/21).Startup Failure Post-Mortems 2021 Fourth Update (12/8/21).Startup Failure Post-Mortems 2022 First Update (02/09/22).Startup Failure Post-Mortems 2022 Second Update (04/13/22).Startup Failure Post-Mortems 2022 Third Update (07/16/22).Startup Failure Post-Mortems 2022 Fourth Update (10/05/22).Startup Failure Post-Mortems 2023 First Update (1/11/23).Startup Failure Post-Mortems 2023 (Q1’23 Update).Additional contributing factors can be hard to uncover, but the obituaries written by founders, investors, and journalists offer plenty of clues.īelow is a time-staggered compilation of startup post-mortems for some of the most notable failures in the CB Insights database.Īfter reading the 452 goodbye letters and investigative takedowns below, check out our rundown for the top 12 reasons that startups shutter. However, failure is multifactorial, with macro trends serving as just one piece of a much larger puzzle.
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