Pessimism still abounds in latest Crunchbase News reader survey
Nearly 59 percent of its readers said the chances of a global economic downturn in 2023 ranked at 6 on a 10-point scale with the latter number being “most likely.”
What’s on the minds of Crunchbase News readers in the organization’s latest quarterly survey?
“Most of you still think a recession this year is more likely than not,” writes Marlize van Romburgh in this article. “You’re tinkering with AI tools, but not yet convinced they’re world-changing. Your companies are still slashing costs. And almost a third of you say your companies only have six months of runway left in the bank. (Yikes!)”
Nearly 59 percent of the readers of Crunchbase News said the chances of a global economic downturn in 2023 ranked at 6 on a 10-point scale with the latter number being “most likely.” There’s a silver lining in the results, however. At the end of Q1 of 2023, the pessimism stood at 65 percent and was even higher — 82 percent — at the end of 2022.
“Interestingly, two distinct groups of companies seem to be emerging from the current environment: Those with plenty of cash, and those with very little,” Romburgh writes. “Of the readers who answered the question, almost a third said their companies still have more than 24 months of runway in the bank. But a pretty high percentage — more than 27 percent of those who answered the question — said their coffers are running dry, with less than six months of runway left in the bank.”
She concludes, “That lends credence to the idea that there could be a “mass extinction event” on the horizon for many start-ups.