Startups depend on free flowing capital, i.e. excess liquidity, and so we tend to do more big moonshots during times of easy money, and there are lower rates of return elsewhere. When capital is tight, funds want to more direct ROI, and are less willing to shell out dollars for 'long term opportunities'. So companies doing '10 minute delivery' and need 10 years of 'losing money' to be profitable are in trouble.
Healthcare is an economy that tends to be much more recession proof, for a variety of reasons.
First is obviously less elastic demand - if your arm is broken, well, you need to fix it.
Second, is that it's really institutional and operational. Healthcare is not a highly leveraged industry, like Crypto - they're not subject so much to the whims of the market. Healthcare is not quite as 'capitalist' as other industries either, obviously in some ways it is, but there's an underlying kind of goodwill.
Third, is that 1/2 the industry is government spending, which doesn't get hit bad like markets, so there's a smoothing effect.
Fourth, is that investment cycles are much longer, to the point where they almost rise above most of the short term 5-10 year macro cycles.
Beyond that, there are indications that people 'get sick more' in downturns and there may be an increase in demand in some ways.
Healthcare tends to be a bit recession proof for those reasons. You may want to Google up on that a bit.
Healthcare is an economy that tends to be much more recession proof, for a variety of reasons.
First is obviously less elastic demand - if your arm is broken, well, you need to fix it.
Second, is that it's really institutional and operational. Healthcare is not a highly leveraged industry, like Crypto - they're not subject so much to the whims of the market. Healthcare is not quite as 'capitalist' as other industries either, obviously in some ways it is, but there's an underlying kind of goodwill.
Third, is that 1/2 the industry is government spending, which doesn't get hit bad like markets, so there's a smoothing effect.
Fourth, is that investment cycles are much longer, to the point where they almost rise above most of the short term 5-10 year macro cycles.
Beyond that, there are indications that people 'get sick more' in downturns and there may be an increase in demand in some ways.
Healthcare tends to be a bit recession proof for those reasons. You may want to Google up on that a bit.