News Summary

Venture capitalists are expressing concern about the impact of President Donald Trump’s tariffs on the startup ecosystem. Several investors fear that the tariffs could slow down tech investments and decelerate the market for initial public offerings. Tom Drummond, managing partner at Heavybit, notes that political volatility in the US is causing anxiety, especially with the 145 percent tariff on Chinese goods. Venture capitalists are considering lengthening investment cycles and avoiding hardware companies, which are expected to be hit particularly hard. M.G. Siegler, an independent investor, highlights that the tariffs are a major topic in partner meetings, with uncertainty about their duration and effect. Chip Hazard from Flybridge Capital has advised startup founders to remain calm but aware of the risks and opportunities posed by the tariffs.