Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

Late Stage Investing: The Real Reason Behind Industry Layoffs

16 Sept 2024 · 0 min

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Jason M. Lemkin argues that the primary driver of recent industry layoffs is not widespread company failure but a halt in late-stage capital: "there's just no more money coming." He references a related post on Sasser and, in a brief exchange, discusses how previously-assumed funding horizons (e.g., 24 months) have been extended in some cases but overall the financing environment has tightened, prompting CEOs to cut staff.

I just wrote about it on Sasser today how much worse late stage investing is. And this is why there's so many layoffs in the industry. It's not. Sometimes these companies are struggling, but for the most part, CEOs are waking up to the fact that there's just no more money coming. That's the issue. That's what's fueling layoffs. There's no more money coming.
Yeah. Like what? What, What? Used to be like, okay, this is good for 24 months. Now it's like, that actually might be enough for 36 months. It might be enough for 38 months. Yeah, it might be. It.