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.

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 a momentous shift over the past year to higher interest rates has left startups more vulnerable to external shocks.

In February 2021, Tractiv got a major break when it gave a demonstration of the software to venture capital firms. 'IT'S TOUGH' In a memo dated Jan. 30, Marvel's global security and content protection team called Tractiv's software, Traxion,"a next generation content delivery system" that would allow it to trace what happens to its data once it goes to a third party – a boon for an industry that deals with leaks of movie trailers and piracy. They recommended moving toward a contract with Tractiv.

 

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