Running a startup is stressful in normal times. COVID-19 is now squeezing startups from both ends: Some venture capitalists (VCs) are pulling back from their financial commitments, customers have been slow to pay, and accounts receivable are turning into bad debt.

This is causing downstream effects — from layoffs to broken leases to fire sales of office furniture — which can happen under the radar because no company wants to issue a press release announcing that it is laying off most of its US staff, closing its offices, and offshoring its engineering work.

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