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Why start a startup in a bad economy


We launched Typedream at the beginning of the pandemic. Then came the Russian invasion of Ukraine. Both situations caused supply chain issues that led to inflation.

Things keep coming at us yet we're still standing tall.

Here are some reasons why to start a startup in a bad economy:

1. What matters is who you are, not when you do it

As @paulg @ycombinator says, "What matters is who you are, not when you do it. If you're the right sort of person, you'll win even in a bad economy. And if you're not, a good economy won't save you.”

2. If you don’t do it now, you might be too late

Technology keeps evolving. If you wait a few years, it might be too late.

3. Any "changes" in this world, good or bad, mean new opportunities

At Typedream, we realized that when in-person operations were paused, more businesses would have to switch their operations online and they would need a #nocode website builder.

4. Fewer competitors

  • Big companies will focus on their main product so there is an opportunity for you to compete with their side products (e.g. Zoom vs. Google Meet).
  • High chance that your competitor will go bankrupt during a recession. Lesson: go lean.

5. Cheaper costs

As fewer companies are competing for ad space, buying ads on platforms like Google will become less expensive with lower demand.

= Lower CAC (Customer Acquisition Cost)

6. Less competition for talent

Big companies will no longer be able to offer ridiculously high salary with luxurious employee benefits so startups can offer a competing salary. The competition will go down to whether or not the candidate is passionate about your product.

7. Others have done it. No excuses.


  • Airbnb (public, $70.86B)
  • Pinterest (public, $16.77B)
  • Beats (acquired by Apple for $3B)


  • Uber (public, $57.79B)
  • Slack (acquired by Salesforce for $27.70B)
  • Square (public, $36.83B)

Data as of Oct 4, 2022, 8:30 pm PT

TL;DR There will never be a better time to build a tech startup than NOW!

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