Latest benchmarks don't support "it's cheaper than ever to run a startup"
Profitual started 2025 deep in the data. Here's our biggest takeaway:
Reviewing 2024 Carta data for start-ups with less than $1M in ARR demonstrates that the average number of employees drops from 12 in 2023, to 7 in 2024. This matches popular commentary stating how it takes fewer people to get your business started (AI is generally referenced as the reason why).
Less people, sure. But is it actually cheaper? Doesn't look like it. Comparing the average burn rates in this early-stage class of start-ups, we see spending remains unchanged at $50K/month. If we have 5 fewer people on payroll, you would assume monthly spending would decrease too - but it's not.
Benchmarking Cheat Sheet
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