A period of uncertainty, trade wars and tariff uncertainty has been created by a global recession and the conflict between the US and China, and is liable to continue for some time.
For startups, this chaos is an opportunity because the existing global economy is in a state of flux and there is no way of predicting what will happen, whereas startups are more flexible and able to adapt to the situations as they develop.
Startups can take advantage of the situation because longer-established companies are less able to deal with the rapidly changing situation and are likely to suffer as a consequence.
It is good business for VCs to invest in startups at this time because they will do well as times get harder for longer-established companies and there will be many opportunities for startups to take advantage of the situation.
The key points for investors to takeaway are - chaos is inevitable, embrace uncertainty, play and take advantage, and the future is created from chance and contingency.
