Start-ups brace for a summer of pain

A series of down rounds are coming and both investors and founders are dreading it

The start-up world has had a tough year — plagued by mass lay-offs, plummeting venture capital investment and the chaotic collapse of Silicon Valley Bank. But many in tech believe that the worst is yet to come.

As the market downturn drags on and investor cash remains hard to come by, more start-ups will start to run out of money, experts say. Some venture-backed companies will be forced to raise new funding even if it ...