The percentage of venture-backed startups renting office space has risen sharply – but the share of their overall expenses that they pay in rent on average has fallen by more than half, from 7% to 3%.

That's the finding of an analysis by Kruze Consulting, a San Francisco-based CPA and finance consulting firm for VC-backed startups.

As of December 2022, 59% of the 750 companies studied were renting office space — not too far off the 65% share in January 2020, and well above the 36% that did so at the start of 2021. However, the share of rent as a percentage of their overall costs consistently declined during the Covid pandemic.

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