Counter-cyclical fundraising is powerful. When capital is scarce, the herd mentality subsides, reducing competition and allowing savvy investors and founders to secure better opportunities and terms. It's a contrarian approach that capitalizes on market lows when others are fearful.

Entrepreneurs who thrived during past downturns (like 2008) often become complacent. With higher overhead and a more comfortable lifestyle, they are less willing to do the hard, uncomfortable work required to win in a new down market, creating an opportunity for hungrier competitors.

Economic downturns, while painful, serve a vital function in tech hubs. They purge the ecosystem of 'tourists' and status-driven individuals who aren't truly committed. This leaves behind a core of dedicated builders, resetting the culture and creating better investment opportunities.

The best time to launch a company is at the bottom of a recession. Key inputs like talent and real estate are cheap, which enforces extreme financial discipline. If a business can survive this environment, it emerges as a lean, resilient "fighting machine" perfectly positioned to capture upside when the market recovers.

Periods of market confusion, where established players don't know what to do next, are the best times for entrepreneurs. Those who can navigate ambiguity and trust their intuition can find and exploit opportunities while competitors are paralyzed by uncertainty.

Launching during a downturn can be advantageous. With less competition, a compelling story can gain significant PR traction. Larroudé's founders leveraged the 2020 pandemic when other brands were silent, mirroring the retail boom that followed the 2008 crisis.

The Great Depression paradoxically created more millionaires than other periods. Extreme hardship forces a subset of people into a "hunger mode" where their backs are against the wall. This desperation fuels incredible innovation and company creation, provided the government clears regulatory hurdles for rebuilding.

Paradoxically, market downturns like the 2008 recession are the best entry points for a venture capital career. This allows investors to "enter low and exit high," capitalizing on lower valuations and the inevitable market recovery.

Brent Ridge, who started his business during the 2008 recession, advises founders in today's chaotic economy to mitigate risk. He suggests either having a partner with a stable career or maintaining a side job to ensure a steady income while launching the new venture, countering the 'all-in' mentality.