According to PitchBook data, a handful of top-tier Silicon Valley venture-capital firms have startups that are bearing the brunt of the current financial crisis.Many startups are experiencing the first, and likely the worst, financial crisis in a generation, and about 60 companies have had to cut costs and lay off employees to stay afloat.NEA and Founders Fund each have 14 companies that have conducted sweeping layoffs or shuttered entirely.No stage was spared, as early-stage investors and later-stage firms like IVP had all backed companies that are now struggling.Click here for more BI Prime stories.
After years of founder-friendly investing, the power is back with the venture capitalists, and startup employees have so far borne the brunt of that power shift.In a tight labor market and cash-rich startup scene, employees were able to enjoy extravagant perks and substantial equity packages on their employers’ dime. But the coronavirus-led economic downturn has forced founders to look long and hard at their balance sheets and start making deep cuts in an effort to survive.All in, Business Insider has counted nearly 60 startups that have conducted layoffs in efforts to save their businesses. At least three venture-backed companies have shut down entirely when cut
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