In the Market: Inside a startup’s struggle in a higher-for-longer world

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Things were looking up for Tractiv in January, when the data tracking software startup was on the cusp of a deal with Marvel Studios. Now, it is on the brink, with just enough cash left to make it to Thanksgiving.

The tale of Tractiv's dramatic reversal in fortunes is emblematic of the times. Marvel, a unit of Walt Disney, initially planned to use Tractiv's software in a post-production process, documents show. But layoffs at Disney and the Hollywood strikes threw a wrench in the works.

Many of Tractiv's challenges are typical of an early-stage company as well as a consequence of risks it took, such as trying to break into a clubby industry outside its area of expertise. Nevertheless, its experience also shows how aA shakeout in the industry may eventually prove to be cathartic. But for now, more pain is likely, as companies burn through cash, the economy slows and funding remains tight.

In February 2021, Tractiv got a major break when it gave a demonstration of the software to venture capital firms. The next few months Tractiv had a series of conversations with major financial services companies, including banks such as JPMorgan ChaseAround then, an unexpected avenue started to get traction. A Marvel contact from Orsinger's days at SpaceX had opened a conversation a few months before about possible use of Tractiv in the movie industry.In a memo dated Jan.

Tractiv pressed forward. It applied to become an official Disney vendor, an approval it got in early May, and built features to meet Marvel's needs.

 

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