- Startups are cutting costs as VC funding recedes and valuations drop.
- It poses risks to tech giants such as Meta and Google that provide business services to start-ups
- Here are the 40 tech companies that are the biggest vendors for startups.
Startups are now feeling the heat as they scramble to cut costs through layoffs and other means due to the drastic cut in VC funding. Some are even shutting down.
Cost savings can mean cutting services such as cloud costs, and the tech giant is one of the most prolific providers of this software.
Large tech companies such as Meta, Amazon and Google have become go-tos for startups looking to outsource their advertising, payroll, computing and operations needs in recent years, according to a new report from AngelList and Silicon Valley Bank. has become
In good times, it was a mutually beneficial partnership. As start-ups offload their operations and focus on building, technology companies have found new revenue streams. Specifically, the costs spent on cloud services from Amazon, Microsoft, and Google are among the highest items in a startup’s budget. Many businesses use cloud computing services to power their services.
But as start-ups look to cut costs, perhaps by culling partnerships back in-house, they pose new risks to tech giants. Many vendors are cutting thousands of jobs.
The report analyzed which public companies are the most popular vendors among early-stage startups for advertising, payroll, computing, and operations. Tech giants Google and Meta dominate the advertising category, while TikTok remains popular, research reveals.
Freelance networking sites such as Upwork and Fiverr are also gaining popularity among startups, suggesting that early-stage companies have “pursued work flexibility” in 2022. It gets tight.