The tech economy is shifting. Even the biggest social platforms are reporting slower growth and some metrics are down double digits. That’s a clear sign the rest of the sector is feeling the heat as valuations drop, IPOs are on hold, SPACs are stalling, stocks are sliding, inflation is spiking, and interest rates are climbing. For startups, this hits harder than more established companies.

Raising money is tougher with lower valuations and borrowing costs more. With rising costs of living, talent becomes pricier and harder to lock down. Supply chains are still trying to gain their footing years after the pandemic and everything costs significantly more. It’s a rough picture to paint for founders trying to scale their business.

But downturns have generated giants before, as today’s tech leaders started in the darkest recessions. Venture funds raised record cash in 2022 and funding is still high compared to pre-pandemic levels. It’s not easy, but it’s possible. Here are five practical moves to keep your startup alive and moving forward.

1. Hoard Your Cash Like It’s Gold
Cash is king in a slowdown. With valuations down and growth slower, every dollar needs to stretch further than ever before. Auditing your spending is essential. Can you bring third-party services in-house? Renegotiate contracts with outside help? Run leaner to cut costs without sacrificing quality? Analyze every line item. Optimizing efficiency buys you time until conditions improve.

2. Ensure Your Team Remains Intact
Hiring is expensive and slows during a downturn. Bringing on new people consumes cash and takes time. Focus on retention and keeping employees happy instead as competitors try to poach your people with big offers. Make your team feel secure and valued to stick around—especially when the job market feels unstable.

3. Keep Your Customers
With limited growth, new sales could take longer in tougher times, so double down on the users you currently have. Understand who they are, how they use your product, and why they will stick with you. Build loyalty and find ways to deepen engagement with them. A solid base keeps revenue steady while you wait for growth to pick up.

4. Explore Unique Ways to Secure Funding
Venture capital may be tighter, but other options do exist. Look at non-dilutive grants, government programs, venture debt, or revenue-based financing. These don’t dilute equity and can bridge funding gaps.

5. Consider an Exit
As M&A activity heats up, bigger companies are snapping up quality targets at lower prices. It might not be the dream valuation, but multiples are still above pre-pandemic levels. If raising more cash isn’t feasible, selling could be the smartest move.

Downturns test the fortitude of every startup differently. No one-size-fits-all fix, but with tight cash control, strong retention, loyal customers, creative funding, and awareness of exits, your company can weather the storm.