HLTH cofounder Natalie Dolphin has 15+ years in marketing, BD & capital markets, helping companies go public & secure Series A/B funding.
As global capital markets brace for uncertainty, the current administration’s tariff policies have introduced a new wave of volatility—sending a ripple effect across sectors and borders. While tariffs have long been used as a geopolitical tool, their resurgence in 2025 can be disruptive for startups and growth-stage companies that rely on market stability and investor confidence to raise capital.
From paused IPOs to hesitant venture capitalists, the impact is broad and immediate. For entrepreneurs, this isn’t just a story about trade—it’s a wake-up call to reassess strategy, runway and resilience.
Cooling Capital Markets
In London, only five companies have listed on public markets this year, with high-profile IPO candidates like Shawbrook Bank and Shein postponing launches. The story is similar in the U.S., where the tech sector has seen IPO plans delayed or shelved altogether.
What’s changed? It’s not just about the cost of imports. It’s about unpredictability. When tariffs are announced and retracted on short notice, investors often tighten purse strings, public markets wobble and valuations become harder to defend.
Bank leaders have expressed frustration with the unpredictability of trade policy. A lack of coordination with financial stakeholders can make it difficult to offer capital markets guidance or support clients with cross-border exposure.
The Impact On Pharma, Hardware And Cross-Border Startups
Startups in pharma and biotech, reliant on global supply chains, have seen investor sentiment turn. Indian pharmaceutical stocks dropped after new tariffs were announced, signaling that even high-growth, high-need sectors aren’t immune.
Similarly, hardware and cross-border e-commerce startups are facing challenges. Some could experience longer sales cycles, margin compression and investor scrutiny.
What Startups Can Do Right Now
1. Reassess your supply chain and margin structure.
If your business is exposed to import-based cost fluctuations, start modeling worst-case scenarios. Consider whether you should adjust pricing, explore nearshoring options and renegotiate contracts. I’ve found the most adaptable founders are the ones who forecast challenges before they arrive.
2. Extend your runway.
Delays in fundraising or IPO timelines mean cash conservation is key. Founders should reassess burn rate assumptions, push back on hiring plans and secure bridge funding if needed. It’s not usually wise to rise in the middle of peak volatility.
3. Double down on strategic communication.
Transparency is currency in today’s market. If you’re raising capital or working with existing investors, over-communicate. Show that you’re not only aware of the macro challenges but that you’re actively building strategies to mitigate them.
In times of volatility, I’ve found that regular, structured updates—such as press releases or investor newsletters—help maintain confidence and clarity. Transparency about both wins and setbacks builds trust, especially when accompanied by forward-looking action plans. I also recommend using video updates or virtual briefings, which add tone and context that written reports often miss.
The key is consistency: Even when there’s little news, staying visible reassures stakeholders that you’re actively managing through uncertainty.
4. Refocus on core differentiation.
Tariffs may be out of your control, but product-market fit isn’t. Now is the time to refine your unique value proposition. Make the business case airtight—especially if you’re targeting sectors less affected by macro volatility.
5. Plan for market reentry.
Market freezes don’t last forever. I recommend founders begin crafting “reentry narratives” for investors—i.e., how you plan to accelerate when conditions normalize. Having a capital strategy that adapts in real time shows maturity and foresight.
Building Resilience
While tariffs are creating turbulence, they’re also exposing an important truth: The startups that weather uncertainty with strategic clarity and capital discipline are the ones that could define the next cycle. In the face of geopolitical change, leaders must shift from reactive to proactive—planning not just for survival but for a smarter, more resilient comeback.
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