Brex has released Brex Startup Review — a comprehensive data report that “looks back at the startup and macro trends of 2022 and what they may indicate for 2023.”
The report delivereod several key findings, including:
- Later-stage companies are making larger cuts in spending overall, whereas seed and early-stage startups are maintaining spend levels but focusing it against big bets where they’re more certain they’ll see growth.
- Overall ad spend has decreased, but use of new ad platforms is on the rise. Specifically, less ad spend went to Facebook while both Google and Amazon saw increases in ad spend. Late-stage companies also increased their TikTok ad spend from 0% at the beginning of the year to 4.97% at the end of Q4’22.
- The rate of startups founded in Silicon Valley continues to decline, with 26% located there in 2022 as compared to 36% in early 2019.
Related to the rise in geographic distribution of startups, there “has been a steady increase in the percentage of startup spend happening outside the U.S., with a YoY increase of 12-17% depending on the funding round segment.”
Michael Tannenbaum, CFO and COO of Brex, said:
“Startup founders are part of a tight-knit community, and we know how valuable it is for them to learn from one another about operating, spending, and more. As a provider to 1 in every 4 startups in the U.S., we are in a unique position to aggregate and anonymize our data and share it with founders in the hopes of empowering them to make better decisions and grow their business faster.”
The full report is available here.
As noted in the update, Brex claims that it “empowers the next generation of businesses with integrated corporate cards and spend management software.”
They make it easy for their customers “to manage every aspect of spending and empower their employees to make better financial decisions from anywhere they live or work.”
Brex reportedly “serves tens of thousands of growing businesses, from early-stage startups to enterprise leaders.”