How Will This Economic Downturn Affect Startups?

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?

author avatar
Ryan Roberts Partner
Ryan Roberts is a startup and venture capital attorney and partner at Roberts Zimmerman PLLC with more than two decades of experience advising high‑growth startups and venture capital investors. He is the author of Acceleration: What All Entrepreneurs Must Know About Startup Law and StartupLawyer.com