How Will This Economic Downturn Affect Startups?

Last Updated on April 25, 2026 by Ryan Roberts

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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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.