Financial TimesFinancial Times

Silicon Valley start-ups race for debt deals in funding crunch

By Tabby Kinder

20 Dec 2022 · 5 min read

Editor's Note

Venture capital has dried up in recent months, so tech founders are seeking “creative funding arrangements” to keep their start-ups running. FT reports on what companies are doing to survive.

Tech start-ups that have traditionally relied on deep-pocketed Silicon Valley investors to fund ambitious growth plans are being forced into alternative financing deals to sustain their businesses and avoid drastic cuts in valuation.

A sharp decline in venture capital dealmaking, alongside a closed market for initial public offerings, has resulted in a funding crunch for many private technology companies over the past year.

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