Trumponomics and startup raising: how to navigate turbulent waters

As a founder who has successfully navigated the choppy waters of fundraising through the Global Financial Crisis (GFC) and the Covid-19 pandemic, I find myself facing yet another storm, this time, stirred by Trump’s recent trade policies.

The current funding environment bears an uncanny resemblance to those past crises, and the implications for early-stage startups are profound.

The funding battleground

In the early stages of a startup’s life, funding is often secured through angel investors and high-net-worth individuals (HNWs).

These investors are typically more willing to take risks on nascent businesses, providing the lifeblood that fuels innovation and growth.

However, the recent economic climate has introduced a level of uncertainty that is making these investors more cautious.

President Trump’s announcement of sweeping tariffs has sent shockwaves through global markets, leading to significant volatility.

On April 2, 2025, he declared a 10% tariff on all imports, with additional country-specific tariffs to follow.

This move has been described as the “biggest disruption to global trade in decades,” wiping trillions of dollars off global markets .

The immediate aftermath saw the Dow Jones Industrial Average plummet by 4,000 points over 48 hours, marking one of the most tumultuous periods since the 2020 pandemic-induced crash.

For Australian investors, the impact is no less severe. The Australian economy is intricately linked to global markets, and the ripple effects of these tariffs are being felt locally.

Economists warn that Australia’s economy will not escape unscathed from Trump’s trade war, especially after the US hiked duties on Chinese imports to 104%.

This heightened uncertainty is causing Australian HNWs to reassess their investment strategies, leading to a more conservative approach to funding early-stage ventures.

The ripple effect

The caution exhibited by angel investors and HNWs is not occurring in a vacuum. Larger venture capital (VC) firms are also feeling the pinch, and this has a cascading effect on the early-stage funding ecosystem. When big VCs tighten their purse strings, the trickle-down impact is felt by smaller startups that rely on this funding to scale and innovate.

During the COVID-19 pandemic, we witnessed a complete drying up of funding for a two-week period.

Chirp founder Nick Armstrong and head of customer Tash Ritz

Startups were left scrambling, with many unable to secure the necessary capital to sustain operations. While the current situation is not identical, the parallels are concerning.

The uncertainty introduced by Trump’s tariffs is creating a similar environment, where investors are hesitant, and funding opportunities are scarce.

Amidst this turbulent landscape, Chirp was preparing to graduate from Startmate at Demo Day last week.

We are acutely aware of the challenges that lie ahead. Securing funding in this environment requires not just a compelling business model but a strategic approach to navigating the complexities introduced by current global economic policies.

A call to action

To my fellow founders and investors, I say this: We cannot afford to be passive observers in this unfolding drama.

We must be proactive, agile, and informed. The stakes are high, and the window of opportunity is narrowing. Now is the time to double down on innovation, to seek out investors who are willing to look beyond the noise and see the potential for growth and value creation.

In the face of these challenges, complacency is our enemy. We must adapt, pivot, and persevere. The spirit of entrepreneurship has always been about overcoming adversity and turning obstacles into opportunities. It’s time we embody that spirit once more.