Why Have 280 Startups Stopped Raising Funds Since 2021

On June 2, 2025, many well-funded U.S. startups have not secured additional funding since 2021, raising concerns about their sustainability. Approximately 280 companies, which raised over $100 million each, have not closed new financing in four years, with an overall decline in venture funding across various sectors like connected fitness, e-commerce, and consumer platforms. These companies total an estimated equity funding of $77.4 billion, equal to the average quarterly funding for global startups the previous year. Notable companies that remain include Automattic, valued at $7.5 billion in 2021, and Grammarly, which recently announced a $1 billion financing. Some businesses, such as Lime and Noom, have adapted to changing market conditions despite decreased investor interest. The startup environment remains unpredictable, with both potential for failure and growth present among these ventures.

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