What Happened to 2,000 Startups?

Executive Summary

Between 2017 and 2021, over 2,000 startups on Carta raised a Series A round—and then… nothing. They never raised another round. In a market that has shifted from zero interest rates to AI mania, these companies are frozen in time. The data reveals a harsh truth: building a VC-backed startup is a grind, and most journeys don't follow the rocket-ship path.

What’s Happening?

• 2,052 Series A startups (2017–2021) have not raised another round.

• These startups still exist—but are stuck. No new capital, no clear trajectory.

• They fall into two camps:

  • Sustainable growers: profitable, self-paced, possibly great for founders—but not for traditional VCs.

  • Zombies: barely alive, conserving cash, with no momentum to raise again.

This cohort reflects the ZIRP era—when capital was cheap, and funding rounds were easier. That window closed in 2022, right before the AI wave hit. Now in 2025, many of these startups face a crossroads.

Why It Matters for Investors

This data offers sobering insight into the reality of venture investing:

• Not every Series A leads to Series B. Fundraises ≠ success.

• Headline rounds fade. Long-term value creation takes stamina.

• Exit strategies shift. Many of these companies will explore:

  • Acquisition by PE or strategic buyers

  • Asset or team absorption by growing startups

  • Wind-downs or quiet closures

For investors, this is a signal to focus on durability, not hype.

What’s Next?

We believe this “lost generation” of startups will soon:

• Restructure or exit quietly, without major headlines

• Feed talent and IP into stronger players, especially in AI, mobility, and fintech

• Remind VCs that capital efficiency, real traction, and steady cashflow are what matter

At Jasmine Blue Capital, we build with that lens: asset-backed ventures, revenue-first businesses, and companies that aren’t reliant on the next fundraise to survive.

Build with Jasmine Blue Capital

We help investors avoiding zombie status companies by focusing on:

• Predictable revenue and real assets

• Strategic runway extensions without dilution

• Partnerships that turn early success into long-term legacy

📩 Thinking about your next chapter? Let’s design it together.

We don’t bet on the hype. We build what lasts.

☀️ Summer’s over. If your Series A was the party, we’re the strategy session that follows.
Let’s write the next chapter – with clarity, not noise.