# State of Startups 2023 Edition

Pilot’s inaugural State of Startups Report provides comprehensive benchmarks around what other founders are doing in the current macro environment. We hope this report proves helpful as you determine what’s right for you and your company.

## What's Inside

74%

Of founders are optimistic about their startup’s outlook

Learn more with a detailed breakdown of business drivers, plus data-driven insights on...

- Founders' confidence levels regarding growth prospects, potential risks, and challenges for 2023.
- Revenue growth rates and trajectories of startups and how they are scaling to maximize profits.
- The financial health of startups with insights into runway and potential funding needs to ensure their growth plans remain on track.
- How startup founders are optimizing resource allocations with spending priorities and strategic focus areas.

## Sneak Peek

Preview a few of the insights included in the full report

### Likelihood of Layoffs

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.

77% of startups don’t expect layoffs this year

- Extremely Unlikely: 57%
- Somewhat Unlikely: 20%
- Neutral: 13%
- Somewhat Likely: 6%
- Extremely Likely: 4%

### Runway

After years of a bull market with record-setting fundraising rounds and valuations, many of the surveyed startups are well-capitalized in 2023, with about half having more than 12 months of runway.

50%

Of startups have over 12mo of runway

- Of SF Bay Area startups, 60% have over 12mo of runway.

Total Runway:

- 0 - 6mo: 21%
- 6 - 12mo: 23%
- 12 - 18mo: 13%
- 18 - 24mo: 15%
- 24+ mo: 21%
- Profitable: 7%

### Revenue Growth

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).

- 2022 Mean: 4.4x  
- 2022 Median: 4.9x  
- 2023 Mean: 1.4x  
- 2023 Median: 2.0x