After staving off mass failure by cutting costs over the past two years, many once-promising tech companies are now on the verge of running out of time and money.
- WeWork raised more than $11 billion in funding as a private company. Olive AI, a health care start-up, gathered $852 million. Convoy, a freight start-up, raised $900 million. And Veev, a home construction start-up, amassed $647 million.
In the last six weeks, they all filed for bankruptcy or shut down.
- They are the most recent failures in a tech start-up collapse that investors say is only beginning.
- They face a harsh reality: Investors are no longer interested in promises. Rather, venture capital firms are deciding which young companies are worth saving and urging others to shut down or sell.