Why Startup Failures Have Risen 60% In The US This Year

Tech Round. a UK Magazine, asked me to share my opinion on why an increase of 60% of US startups are failing this year. This statistic was originally reported by the Financial Times.

“The reason why US startup failures have increased 60% is several. First, innovative people have become risk adverse. In the past, you could always fall back to a job at McDonalds. This is no longer true. There are no safe jobs to fall back to anymore.

“Second, the large quantity of Asian students that have fed the startup eco-system directly and indirectly have stopped coming to the US. This has negatively affected universities budgets and consequentially has affected the student’s culture of thriving. The US educational system has been in a steady decline for years with Administrators making larger salaries than corporate CEOs.

“Third, people are using GenAI to make their current job or posting online easier but not to innovate and create new jobs. The American culture needs more role models that are rich in character and ethics. People who work startup companies for a better tomorrow, not just for money.

Startup Failures

“Innovation is a mindset and culture to itself. The US environment has to fertilize this special breed of people. Today, the US is doing so in small communities but not as before when it was the American way of life.”