St. Louis software firm Balto has laid off more than two dozen employees, joining dozens of technology startups nationwide that have let go of employees in recent weeks as uncertainty hangs over the industry.
Balto, headquartered in Downtown West at 1227 Washington Ave., has laid off about 30 employees, according to a LinkedIn post from a former employee. Balto declined to comment on the layoffs and the number of positions eliminated.
Founded in 2017, Balto has developed “real-time call guidance” software used by contact centers. Its technology is designed to provide guidance and coaching for customer and sales agents while they are on calls. It says its tech has been used on more than 125 million calls.
The positions eliminated by Balto represent a significant portion of startup's workforce, which CEO Marc Bernstein told St. Louis Inno in early May included more than 160 employees. Balto’s layoffs included a range of different positions, including roles in sales, customer support, engineering and recruitment, according to posts on LinkedIn by affected employees.
Balto has expanded rapidly, raising more than $50 million in venture capital funding as it’s launched new products and added to its headcount. Its team grew from 52 employees in April 2021 to 160-plus in May, according to the company. Investors in Balto, which in August 2021 announced a $37.5 million Series B funding round, have included St. Louis-based venture firm Cultivation Capital, New York-based investment firm Stripes and RingCentral Ventures, the venture capital arm of Belmont, California-based telecom company RingCentral (NYSE: RNG), and others.
Balto is among dozens of venture-backed startups across the country that conducted layoffs in recent weeks.
The workforce reductions come amid concerns in the startup and technology spaces about an economic downturn, which could impact the amount of capital pumped into startups. Venture investment into U.S. startups in the first quarter dipped from the prior quarter, according to Pitchbook.
The Silicon Valley Business Journal reported Monday data from document software firm DocSend found that venture investors are looking at 20% fewer pitch decks compared with earlier in the year. Locally, venture investors recently told St. Louis Inno they are recommending their portfolio companies review components such as hiring and spending as the venture market slows, with one investor saying "the ‘grow at all costs’ era is gone."
