tomtunguz.com · 2022-06-06 · 1459d

Top 10 Insights from the 2022 Startup Sentiment Survey

Analysis of nearly 500 founder responses to a 2022 market conditions survey reveals declining founder sentiment (6.0/10), expectations of slower ARR growth (45% expect declines averaging 31%), and widespread preparation for market contraction through reduced burn, layoffs (~20%), and extended runway planning. The survey shows founders expect fundraising valuations to decline ~11%, with top companies maintaining stable valuations despite broader market softness.

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Metrics in this report

ARR Growth Reduction Plan

31%percent

average

Companies expecting slower ARR growth (45% of respondents)

Cash Runway

18months

median

Typical startup runway regardless of total capital raised

Expected Fundraising Valuation Decline

11%percent

average

2022 expected valuation decline vs. 60-70% public market correction

Founder Sentiment Score

6.0scale_of_10

average

Surveyed founders in 2022 market conditions

Founder Sentiment Score (Live Audience)

4.0scale_of_10

average

Live Office Hours audience in 2022

Headcount Reduction in Layoffs

20%percent

average

Companies conducting layoffs (20% of survey respondents)

Recommended Cash Runway

24months

target

Board recommendation based on historical recession duration

Web3/Consumer Founder Sentiment

4.8scale_of_10

average

Web3 and consumer-focused founders vs. Software/Infrastructure founders