How can startups are affected by the closing of the prolonged government

The closure of the United States government may suffocate the flow of the deal, freeze the visa processing to workers, and causes other problems for startups and the broader technological sector, especially if it lasts longer than a week, according to experts who spoke to Techcrunch.

The US government, which started on Tuesday, is the first in seven years. The inability to predict the Trump administration alongside the firmly firm Congress makes it difficult To predict the closure It will end. Out of eight closures since 1990, four It happened during Trump The administration, the last one was for 35 days, is the longest in modern history.

Techcrunch occurs to investors, founders and even lawyers who have warned of the delay in the flow of the deal and the visa processing for workers, which was recently raised by a modern change by President Trump The request fees for the H-1B visa announced It will exceed $ 100,000 – a number that shocked stickers inside the industry.

The main concern is the slow immigration process for startups, where the Ministry of Labor-which provides the first approval of H-1B visas and green cards-is closed. Immigration lawyer, Immigration lawyer, Sophie Alcun, said that the pipeline to employ and renew visas for workers with high skills is completely frozen.

“This creates a state of great uncertainty in the workforce to start operation, including founders who may be on visas themselves,” she told Techcrunch.

“The visa workers have severely struck the closure because their situation depends on government approvals,” Michael Skarbati, CEO and founder of Fintech Retireus. “When operations such as E-Verify or employment certificates stop, workers risk getting out of the situation, leaving their future in the United States is uncertain and creating an additional disturbance for the companies that depend on it.”

Thousands From workers in technology on visas, In many cases, you have brought partners and children.

“Many people feel totally tense in a concept treatment of delay and how this affects their ability to survive and work,” Chris Chib, CEO of Strategic Solutions, told Techcrunch. “But just as these engineers help us to persevere through complex challenges with ML algorithms and innovation, we condemn them with the same attention and careful commitment during this position.”

Startups may also be affected by the delay or stopping of permit operations and other organizational requirements, which can diminish precious funds and even lead to the layoffs of workers.

Jenny Wielding, the administrative partner of Everhere Ventures, said that the constant political uncertainty always worries it. Although previous closure did not have a little economic impact, this may lead to demobilization if it continues for a long time.

“Since we are investing in many areas subject to regulation, closing can stop the basic government jobs such as FDA approvals or space permits, which can pose an existential threat to the start of operation whose entire business model adopts in one organizational green light,” said Techcrunch.

Fielding said the timing of the closure, again, was terrible for her and the company. When Everhere Ventures started collecting donations in early spring, President Trump announced the definitions that caused uncertainty and raised the costs of some companies.

The company stopped collecting donations at that time because the limited partners were tense of investing in view of the uncertain climate. “Of course, we started collecting donations this week, so again, a terrible timing,” she said.

As for the start -up companies in Fielding, she said it is difficult to wait and see in this case. Fielding said that the founders always need to think about the plan B, especially because the capital is limited.

“If the closure is a week, this can be controlled,” I continued. “But when it becomes weeks, it can become uncomfortable.”

Garima Kapoor participated in the establishment of the Minio software company with her husband, AB, who came to the United States with a H-1B visa more than a decade ago. She said that startups should start preparing now, only if the government is closed.

“When government agencies slow down, deals in high industries, which are very organized such as Fintech, Health Tech, or M&A can stop. Even companies operating outside the federal field may face volatile assessments and conditions of the most striking deal with more uncertainty in the market,” she said.

In general, the founders must remain proactive, and communicate transparently with partners and investors, and planning “wisely for slipping”, noting that clarity and alignment will be essential here.

“Preparing for those who overcome the disturbance will be separated from those arrested in the feet.”

Chib added to that. “Their flexibility is part of what drives the progress.” “For those who face these challenges, they know, this will also pass.