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Is Now the Right Time to Start a Startup? The Real Bet You're Making
Founders, not the economy, shape startup outcomes.
Hey y’all - every economic downturn comes with its own breed of headlines, layoffs, inflation, rising interest rates, market volatility. Throw in a global conflict, trade tariffs, and a cautious VC environment, and it's no wonder aspiring founders are asking the age-old question:
“Is now really a good time to start a startup?”
On the surface, the answer seems obvious: probably not.
But what if we’ve been asking the wrong question all along?
What if the biggest factor in whether a startup thrives isn’t the economic cycle…
but the relentless determination of the founder behind it?
In this deep dive, we’re peeling back the noise and exploring why timing isn’t the make-or-break variable we think it is and why, against all odds, this might be the best time in years to build something people truly need.
The Context
Someone asked me if now is a good time to start a startup, with all the uncertainty in the world. The answer is yes, because the dominant factor in the outcome of a startup is whether the founders can discover a great product, not the political or economic environment.
— Paul Graham (@paulg)
1:09 PM • Apr 9, 2025
Is now a good time to start a startup?
The hesitation is understandable. Markets are uncertain. Investors are cautious. Supply chains are shaky. Capital is no longer cheap. You hear the word "recession" more than “raise.”
On the surface, it might seem like the worst possible time to start something new.
But scratch a little deeper, and the truth emerges:
There has never been a perfect time. And there may never be one.
Because the dominant factor in a startup’s success isn’t the world.
It’s the founder.
This is not motivational fluff. It’s math.
Let’s break it down.
What Most Founders (and Investors) Get Wrong
When we talk about startup outcomes, we often obsess over macroeconomic trends:
Interest rates, VC dry powder, geopolitical stability, inflation, consumer confidence, tariffs.
And sure, those factors matter.
They influence how capital flows, how much users spend, and how fast markets grow.
But their impact is shockingly small in the grand scheme of startup outcomes.
How small?
Paul Graham, co-founder of Y Combinator, puts it plainly:
Macroeconomic factors might affect the value of a startup by 2x or 3x.
Getting the product right can affect it by 1000x.
Think about that.
The difference between building the right product and the wrong one isn’t a few percentage points.
It’s the difference between a startup that survives…
and one that defines its category.
The Real Bet: Product Discovery, Not Market Timing
Here’s the core truth every founder eventually wakes up to:
You’re not betting on timing. You’re betting on your ability to discover product-market fit.
The startups that endure are the ones that relentlessly pursue what people want, even when they start with the wrong answer.
This pursuit, not the pitch deck, not the fundraising round, not the macro, is what drives real success.
Because when founders get the product right:
Word-of-mouth kicks in
Retention rises
Revenue starts to flow
Investors take notice
Teams stay energized
And most importantly:
Customers come back, again and again.
No economic cycle can fake that.
What Actually Happens in “Uncertain” Times
If we look historically, many legendary companies were founded in chaotic climates:
Airbnb launched into the 2008 housing crash
Uber grew during the same recession
Slack evolved from a failed gaming company
Stripe began when the fintech regulatory landscape was a mess
WhatsApp gained traction during economic downturns
Notion stayed lean and focused through multiple hype cycles
In other words:
Uncertainty doesn’t prevent great startups, it filters for them.
Downturns kill hype-driven projects and force teams to focus on fundamentals:
Do people need this?
Will they use it more than once?
Is this 10x better than what they’re already doing?
If the answer is yes! especially during economic strain, then you're not just building a company.
You're building resilience into the product DNA.
Why Startups Are Surprisingly “Safe” in Uncertain Times
Here’s the paradox few people talk about:
Startups are less affected by macro conditions than large, legacy businesses.
Why?
They’re small – no big payroll to meet, no legacy systems to maintain
They’re agile – they can pivot in weeks, not quarters
They’re early – they’re not tied to quarterly expectations or public market sentiment
They’re default-scrappy – founders often build with minimal resources anyway
And most importantly…
Startups aren’t betting on GDP growth. They’re betting on people.
Specifically, one group of people: the founders.
The Founder Is the Startup
When investors back an early-stage company, they’re not betting on the code or the logo or even the idea.
They’re betting on the founders.
Is this someone who will figure it out, no matter what?
In fact, that’s often the only thing they’re betting on. Because most early-stage ideas will morph.
The first product usually changes.
The go-to-market evolves.
The business model shifts.
But the founder?
If they’re curious, humble, driven, and obsessed, they’ll adapt until something clicks.
It’s no exaggeration to say: Startups don’t succeed because they had the perfect launch.
They succeed because the founders refused to stop learning.
The Twist: Founders Are Betting on Themselves Too (Even If They Don’t Realize It)
Here’s the twist that makes this idea even more profound:
Founders are betting on themselves, too.
But most don’t realize it.
They think they’re betting on:
Their unique insight
Their technical advantage
Their go-to-market strategy
Their “first-mover” edge
But at the heart of it all, they’re asking one quiet question:
Do I have what it takes to build something people truly need?
And here’s the beautiful part:
They don’t need to know the answer on Day 1.
In fact, they won’t. Because no one does.
The journey of a startup is the discovery of that answer.
So, Should You Start Now?
Let’s bring it full circle.
If you’re asking whether this moment, full of inflation, uncertainty, tariffs, and instability, is a good time to start a company...
Here’s the answer:
Yes. Because the most important variable in the equation hasn’t changed and that variable is you.
Macroeconomics may shift your valuation 2x or 3x.
Getting the product right will shift it 1000x.
And whether you get it right depends almost entirely on how deeply you care, how much you’re willing to learn, and how fast you can iterate, not on whether the NASDAQ is up this week.
The best startups are not created in calm times.
They are created by calm minds in chaotic times.
Don’t wait for the world to settle down.
Because while others hesitate, the most legendary builders are quietly starting something that could outlast the noise.
They’re not asking, “Is now a good time?”
They’re asking, “Can I figure out something people truly need?”
If you’re asking that too.
Then yes, now is the perfect time to start.
Food for Thought
What’s the one thing that’s been holding you back from starting?
Drop it below, or tag a builder who needs this message today.