What Happens To Startups in a Recession?
From angel investing, VC funds and default-dead startups
The tech world, especially startups, have enjoyed a bull run in the last decade with record highs across the board. After all, some of the biggest tech companies in the world have breached the trillion-dollar market capitalization in the last few years (Apple, Microsoft, and Alphabet).
However, with COVID-19 and oil wars escalating, the markets took a turn for the worst with the DOW dropping a sharp 2000 points, one of the worst days of trading since 2008.
Many believe that this could mean an upcoming recession or downturn that has been forecasted years ago.
But with all this news, what will happens to startups?
When you put startups and recessions together, the first thing you usually assume is a whole bunch of negative things due to risk and volatility.
But this isn’t entirely true.
Let’s go through some scenarios related to startups and funding.
Amount of Angel & Seed Deals Remain Constant
In a downturn, one of the first things expected is startups getting less funding opportunities in the market, especially for…
