Communications of the ACM
Tech Layoffs Are Feeding a Surge in Startups
"I just really believe in the idea," a startup founder says.
Credit: Getty Images
Some of the hundreds of thousands of workers who lost jobs at tech companies over the past year are deciding to build their own companies.
Startup accelerator Y Combinator saw applications for funding increase by 20 percent to more than 38,000 in 2022, a spokesperson said. Applications in January 2023 increased fivefold.
Founders describe the stresses of developing new skills like pitching and fundraising, which didn't need to be part of their technical and industry expertise. But most also feel energized. For them, layoffs provided a push to pursue an idea that has long lingered.
The workload of an entrepreneur can be unforgiving. "It's a grind," says Jen Zhu, who was laid off last summer and is working on a health tech startup, Maida AI. "It's really hard to turn off. There's always more to do."
From Wired
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