During the first week of January, Carbon Health CEO Eren Bali announced on Twitter the company would lay off around 200 people. Days later, according to Crunchbase data, the health care startup announced it closed a $100 million Series D round.
Carbon Health’s news follows a similar pattern we have seen in 2021 and 2022 layoffs compiled by Crunchbase. After companies raised two massive rounds in the span of a few months, layoffs followed the next year.
“There was this growth-at-any-cost mindset where the main thing that was being rewarded in a venture-backed company’s ability to raise at a high valuation was revenue growth,” said Healy Jones, an executive at startup consulting firm Kruze Consulting. “That’s all people cared about.”
When I asked startup hiring experts what we can expect from layoffs in 2023, Continuum founder Nolan Church told me: “I think we’re going to double what we have done so far.”