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. Marvel, a unit of Walt...

- 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.

Orsinger said Hans Morris, managing partner of venture firm Nyca Partners, called him afterwards. "I don't know exactly where or how your tech will be used, but I'm willing to pay to find out," Orsinger said Morris told him. The prospect of the deal persuaded Nyca, which normally sticks to financial technology, to make an additional $500,000 investment in Tractiv at a $20 million valuation. Orsinger also raised $200,000 more from family and friends.

On May 2, the Hollywood writers went on strike, followed by actors in July – the first time both unions had gone on strike since 1960. Production ground to a halt. Super-rich Americans are now giving up on the stock market, holding historic levels of cash — here's why and what they're plowing their wealth into instead

 

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