Several factors can contribute to decreased investor confidence:
1. Economic Instability: Political turmoil, economic downturns, and market volatility can make investors wary of committing funds. 2. Poor Business Performance: Consistently missing financial targets or failing to meet milestones can erode trust. 3. Regulatory Changes: New regulations or policies that negatively impact profitability can deter investment. 4. Scandals and Fraud: Instances of fraud or mismanagement within a company can have a lasting negative impact on investor confidence. 5. Competitive Pressure: Increased competition or disruptive technologies can make investors uncertain about a startup's future prospects.