Economic downturns, although challenging, can provide an opportunity for launching new companies and products.
- Raising capital for a startup during a recession can be difficult. If your goal is to fundraise within the next year, start by asking yourself if your product or business is still relevant in the current environment.
- Do your research — figure out if potential investors are adventurous or conservative, and be transparent with them about your company and the challenges you may be facing.
- Rely on a board of advisors with experience in running startups to provide guidance.
- Manage cash cautiously and set your organization up for survival. But have a plan ready for post-crisis growth.
Where your work meets your life. See more from Ascend here.
A look back at history shows us that crises are opportune moments for new ideas, innovations, and systems. Some of the most famous companies today were launched right after the 2008 economic crisis: WhatsApp, Uber, Slack, AirBnb, and Groupon, etc. are a few noteworthy examples.
