California officials are sounding the alarm after recent statistics showing that less corporate and start-up activity in the state will lead to a decline in tax revenue, according to a report by Bloomberg News.

This year, just nine companies based in California have held initial public offerings, or IPOs, which is when a company first lists shares for sale on the stock market—considered a milestone in its growth after strong activity and high valuation, Bloomberg’s report revealed.

In 2021, California—whose start-up ecosystem in Silicon Valley is considered the most prodigious in the world—saw 81 companies conduct IPOs, making 2022 the year of a ninefold decrease.

Moreover, the value of these IPOs was far lower than in the past, raising $177 million, or 2% of the total amount raised by U.S. companies that went public in 2022. By contrast, in 2021, California’s share of the revenue generated by IPOs was 39%, by far the largest of any state.