Inflation, tensions from Russia’s war in Ukraine could hurt ability of Wisconsin startups to raise money, with SBDC’s Tara Carr and alumnus Craig Dickman
“…could weakened financial markets, the threat of recession, and geopolitical tensions put a crimp in that pipeline of money? Maybe so, experts say, as investors review their strategies…Experts say those types of startups, that solve real-life problems, will continue to attract investors even in a tighter market.
While the pandemic blindsided the hospitality industry and some other segments of the economy, technology startups focused on solutions fared well, according to Craig Dickman (UW-Green Bay alumnus), managing director of TitleTownTech, a venture capital fund formed out of a partnership between Microsoft Corp. and the Green Bay Packers.
“As long as there are problems being created, there are openings for startups,” Dickman said.
He’s confident in the availability of capital even as the stock market has been stressed and investors assess the various impacts of inflation, rising energy costs, supply chain problems and the war in Ukraine.
“There’s money out there,” Dickman said. “It’s not really more difficult to get funding currently.”
Career burnout leads to startups
…The timing’s right for many people to take the risk of starting a business, and if it doesn’t work out, they can fall back into a strong labor market.
What medical professionals lack in business experience, Booher said, they make up for in many other ways.
…While starting a business appeals to many people weary of their career path, Gen Zers, those individuals born after 1996, didn’t experience the Great Recession when capital was much harder to get and startups suffered.
But early in the COVID-19 pandemic, they got a taste of hard times.
The number of Gen Zers who reported that they or someone in their household lost a job or took a cut in pay was significantly higher than millennials, Gen Xers or baby boomers, according to the Pew Research Center.
Don’t underestimate the resolve of Gen Zers.
Entrepreneurs of any age, “are a special breed. They’re fighters,” said Tara Carr, director of the Small Business Development Center at University of Wisconsin-Green Bay.
“I think most importantly, they’re educated and have a realistic understanding of what’s happening,” Carr said.
(This story can only be seen in its entirety by subscribers to the Milwaukee Journal Sentinel)