Hey there!

It’s Sparsh here!👋 

The past few years have been anything but smooth for startups and investors. With inflation, sweeping tech layoffs, and market jitters, it’s tempting to think you should wait for things to “get better” before launching something new. 📈

But if you look at history(and at recent events), you’ll see that some of the world’s most iconic companies were born during economic storms, not sunshine. The secret? It’s about the founders, not the timing. Let’s explore why. 💡

Let’s dive in to know more! 🚀 

🕰️ Great Startups Born in Bad Times

Some of the world’s most transformative companies emerged right when the outlook seemed bleakest. This isn’t just ancient history—it’s been true in recent years, too.📊

👤 It’s Who, Not When

Paul Graham’s big insight still holds up: the founders matter more than the economic cycle. If you’re the right kind of person, persistent, creative, and adaptable, you’ll find a way to win, no matter how gloomy the headlines.📰

So, whether you’re building or investing, focus on people and culture, the rest is just background noise. 🧑‍💻

💸 The Funding Rollercoaster

Raising money always has its quirks, but in a downturn, things get even more interesting. The recent funding crunch (2022–2023) saw global VC investment drop sharply, but it also weeded out the froth and forced everyone to take their investments seriously.💰

• 📉Valuations dropped, making equity go further for investors and founders.

• 👆🏻Investors became selective, but those who invested became true partners.

• 🤖Certain sectors, such as AI and GreenTech, continued to generate billions even when others dried up.

• 🛍️Survivors of the “lean years” are usually best positioned when markets rebound.

It’s a rollercoaster for sure, but one that rewards those who can adapt. 📉

🦾 Cockroach Startups: Survive First, Thrive Later

Forget about chasing unicorn status when things get tough. The real winners in downturns are what some call “cockroach startups,” resilient, scrappy, and impossible to kill. 🔪

If you can survive the storm, you’ll be ready to sprint when the sun comes out again. 🪳

📉 The Economy: Challenge or Opportunity?

What does a “bad economy” actually mean for startups and investors? It’s not all doom and gloom—there are hidden advantages.🎯

⬇️On the downside:

• 🏷️Customers are price-sensitive, so luxuries become a harder sell.

• 💵Investors are more cautious, with higher bars for traction and profitability.

⬆️On the upside:

• 💼It’s easier to recruit top talent after layoffs at big firms.

• 🧪Less competition means more breathing room for experimentation and growth.

Startups that help people save money or do more with less can actually see a surge in demand.📈

🏆 Recent Examples from Tough Times

Some of today’s best-known companies started—or thrived—when economic conditions were rough.

1. Airbnb hustled through the 2008 crash, making travel affordable for millions.🏨

2. Venmo, WhatsApp, and Uber all launched amidst the Great Recession, now shaping how we pay, chat, and move.📱

3. AI and climate startups raised huge rounds during the 2022–2023 squeeze, proving there’s always room for innovation.🌡️

4. Founders who focused, cut costs, and kept building are still here, while many cash-burners disappeared.🔥

History—and the last few years—prove it’s the doers, not the doubters, who win. 🏅

💡 Takeaways for Investors and Founders

No matter what the economy looks like, certain principles remain unchanged.

• 👨🏻‍💻Founders: Focus on team, adaptability, and solving real problems. Don’t wait for perfect conditions—build, launch, and learn.

• 👨🏽‍💼Investors: The best deals are often found when others are afraid. Look for resilience, traction, and founders who can stretch every dollar.

• 👥Everyone: The next game-changer is likely being built right now by a team that sees challenges as opportunities.

If you can survive the downturn, you’re already ahead of the curve. 🌱