With the macroeconomic environment as volatile as it is, many of us are faced with tricky decisions about how to best run our businesses. In situations like this, I’ve always found the wisdom of the crowds useful. What are other people doing? What do their growth rates look like? How are they thinking about office space? How do we compare?
We thought it would be helpful to share some of that aggregate data, and so we present you Pilot’s State of Startups report, 2023 edition.
We surveyed founders from around the world, and here are our findings. I’m hoping you find it useful.
Pilot CEO & Co-Founder
Despite operating in a tough economic environment, the majority of startup founders have a positive outlook on 2023. They expect 2023 revenue growth to be strong, and, broadly, they don’t expect to conduct layoffs or cut costs in any departments.
Time will tell whether or not this optimism is warranted.
Seed Stage Founder, Southern California
Although founders are optimistic about their startups, most are less optimistic about 2023 revenue growth expectations. Median 2023 revenue growth expectations are less than half of that of 2022, with the median startup expecting to 2x revenue (vs. 4.9x in 2022).
Despite the headlines, our surveyed startups are not expecting to conduct layoffs. About 60% of companies feel that it's extremely unlikely that they will conduct layoffs this year. Smaller startups are less likely than mid-sized startups to consider layoffs. Specifically, startups with <10 FTEs are 34% less likely to consider layoffs this year than those with 11-50 full-time employees.
If Conducting Layoffs, Percentage of Headcount That Would be Affected
Series A Founder, San Francisco Bay Area
Colorado-Based Startup Founder
New York-Based Startup Founder
We hope this report gives you a good sense of how your peers are approaching some of the decisions they are facing today and that it can serve as a useful guide as you face similar decisions.
If there’s anything we at Pilot can do to help out, please get in touch. We’re the largest startup-focused accounting firm in the US, and we have a robust CFO services practice area. The team is especially good at helping you think through tricky strategic questions, and we’d be happy to chat.
We’re rooting for you!
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