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Investors Worry Trump’s Tariffs Could Cause a ‘World of Hurt’ for Startups
Donald Trump's unpredictable tariff policies have unsettled the venture capital world, further darkening an already gloomy outlook for IPOs.
Hudson also predicted that selling stock in private startups on the secondary market will make up the overwhelming majority of liquidity that investors see over the next five years, rather than returns from acquisitions or initial public offerings. Analysts from PitchBook, a database for statistics about the venture capital and private equity markets, warn the tariffs could have a cooling effect on international investments, noting that startups once celebrated for having “global first” strategies might now be seen as vulnerable. “For decades, VC has flourished in an increasingly borderless world, but another week of tariff wars is prompting a major reassessment,” PitchBook reporter Leah Hodgson wrote earlier this month.
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