Silicon Valley startup incubator and venture capital firm Y Combinator advises startup founders to prepare for the worst . Notable startups funded by Y Combinator include Dropbox, Coinbase, Airbnb, and Reddit. It advises startups to save money, make sure they have enough cash flow to get through the recession, and if they don’t, they should raise money as soon as possible, and don’t wait 6 to 12 months for the peak of the recession to decide to raise money. Because even if your company is doing well at this time, the chances of a successful financing will still be low. In a bad economy, you can potentially gain a lot of market share just by staying alive, as competitors that don’t plan ahead will go out of business.
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