How Will This Economic Downturn Affect Startups?

By Startup Issues

As the economic downturn begins to spread from sub-prime borrowing to the current credit contraction (and I’m not ready to say the R-word yet), it seems unlikely that startups will be immune from an economic storm that may be felt internationally and across various asset classes. Fortunately, advances in technology mean that startups can launch with little capital, thereby reducing risk to themselves and/or their investors. But unfortunately, not all startups can be bootstrapped.

What effect do you believe the current economic downturn will have on the viability and number of startups?


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