NOVEMBER 2023 INDUSTRY NEWS AND TRENDS
After a post-pandemic surge of venture capital flooded the startup space, things look very different as we enter Q4 of 2023.
According to new data from Crunchbase, global venture funding slumped by 24% percent between October 2022 and October 2023, and some investors are predicting a dearth of funding in the year ahead. Higher inflation and interest rates are among the reasons for the shrinking pool of venture funds. Another factor is that the startup space is perceived as being overcrowded and in need of thinning, which increases the percentage of startups likely to fail in the near future.
A new reporting requirement will affect more than 30 million businesses, yet most are not aware of it.
It applies to all businesses that earn less than $5 million in annual sales from the U.S. and involves reporting basic identifying information about the company’s beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
The requirement goes into effect in 2024, yet a recent survey found that 74% of affected businesses don’t realize this rule applies to them. Find out what’s required and whether your business may be affected.
A new insight report from Intuit revealed that U.S. small businesses are becoming more reliant on credit card debt.
Data collected from 2.8 million small businesses across the U.S. showed that nearly one-third of small businesses (30%) have relied on credit card debt over the past 12 months, and many are using it to smooth out cash flow issues. Between September 2022 and April 2023, the number of U.S. small business respondents who turned to credit cards to address cash flow problems increased from 51% to 68%.