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The U.S. tariff landscape has become a game of whiplash. Blanket tariffs were floated for every country. Now, most are off the table, except China. The result? A volatile, unpredictable environment with no clear playbook for founders or investors.
VCs are pulling back. Startups are recalibrating. And uncertainty is becoming the biggest risk factor in every financial model.
What we cover: How tariff turmoil is slowing deals, delaying IPOs, pressuring valuations—even for AI—and what founders can do to navigate the chaos.
The domino effect
Tariff tension → market volatility → delayed IPOs → slower VC funding
Investors are holding capital longer. Founders are adjusting to leaner rounds. And due diligence? It’s now way more intense.
“We are trying to triage and figure out which ones will have the most pain early on.”
Jake Saper, General Partner at Emergence Capital
Source: PYMNTS.com
Startups caught in the crossfire
Tariffs are pushing up costs and tightening supply chains, especially for:
- Hardware
- EV & Clean Tech
- Biotech
- Consumer Goods
Even software isn't totally safe—AI infra relies on globally sourced chips and hardware.
Source: Forwardfuture.ai
And now IPOs are on ice
Public markets are shaky—and tariff drama isn’t helping. From delayed listings to valuation drops, IPO timelines are on pause.
- IPOs are stalling
- Limited Partners are cautious
- VC returns are down
Several high-profile companies have hit pause in 2025:
- Klarna: Shelved its $15B NYSE debut amid tariff uncertainty
- StubHub: Delayed IPO due to shaky investor confidence
- Chime: Postponed plans, citing volatile conditions
“This kind of market instability naturally makes any company, regardless of sector, hit the brakes on near-term IPO plans.” Lukas Muehlbauer, a research analyst at IPOX
Source: Reuters
Fewer exits mean fewer new deals—and tighter purse strings from VCs.
Is there an AI exception?
Yes, investors are still writing checks for AI startups. But:
- Valuations are under pressure
- Hardware costs are volatile
- Regulations are looming
Translation: You need more than hype. You need revenue, margin, and a path to scale.
“Only a few AI startups that achieve significant breakthroughs, such as closing the gap between advertised and actual capabilities and enhancing commercial viability, are likely to survive and justify their valuations, while the majority perish.” — Tomas Miller, Forbes Council Member
Source: Forbes
How you can still win over VCs
What VCs want in 2025:
✅ Domestic supply chains
✅ Realistic growth strategies
✅ Margin awareness
✅ Faster paths to profitability
When trade gets turbulent, your finances need a sidekick
In a world of chaos, clarity wins—work with Zeni to model your burn, streamline vendor costs, and get expert guidance from a dedicated Fractional CFO.
