How Do Market Fluctuations Affect Startup Funding?
Market fluctuations can significantly impact startup funding. During periods of economic growth, investors are more willing to invest in new ventures, leading to easier access to capital. Conversely, during economic downturns, funding can become scarce, and investors may become more risk-averse. Entrepreneurs should be prepared for these variations and consider alternative funding sources such as crowdfunding, bootstrapping, or grants.