Closing the US government can suppress the flow of transactions, determine the processing of visas for employees and cause other problems for startups and a wider technological sector, especially if it lasts longer than a week, in line with experts who talked to TechCrunch.
The closing of the US government, which began on Tuesday, is the first in seven years. The unpredictability of the Trump administration in combination with a politically rooted congress makes it difficult predict when closing It will end. Out of eight closures since 1990, 4 It happened during Trump Administrations; The last lasted 35 days, the longest in modern history.
TechCrunch talked to investors, founders and lawyers who warned about delayed transaction flow and vision processing for employees. The visa process has already been increased when President Trump recently announced that the fee of the H-1B visa application will increase to $ 100,000, which caused a shock of the sticker in the industry.
The fundamental problem is a slow immigration process for startups, because the work department-which provides the first consent to H-1B and green cards-closed. The result, said the immigration lawyer Sophie Alcorn, is that the pipeline for employing and renewing visas for highly qualified employees is completely frozen.
“This creates significant uncertainty for the startup labor force, including the founders who can be on visas,” said Techcrunch.
“Visa employees are heavily hit in closing, because their status depends on the approval of the government,” added Michael Scarpati, general director and founder of Fintech Emeriveus. “When processes such as e-verifications or working force certificates stop, employees risk that status is not enough, leaving their future uncertain and causing additional interference for companies that depend on them.”
Thousands technology employees are on visas, Many of them take partners and children with them.
TechCrunch event
San Francisco
|.
October 27-29 2025
“Many, understandable, are nervous of processing delays and how it affects their ability to stay and work,” said Techcrunch Chris Chib, CEO of Strategy Solutions. “But just like engineers help us persist through complex challenges related to ML algorithms and innovations, we owe them the same careful attention and commitment in this situation.”
The start -ups may additionally be influenced by delayed or detained permits and other regulatory requirements that can be familiar with invaluable funds and even result in layoffs.
Jenny Fielding, a managing partner in all over the place ventures, said that constant political uncertainty all the time worries her. Although earlier closures had a little economic impact, he may lead to layoffs if it lasts too long.
“Since we invest in many regulated areas, closing can potentially stop the necessary government functions, such as FDA approval or permits for aviation, which can be an existential threat to the startup, which the whole business model depends on one regulatory green light,” said Fielding Techcrunch.
Fielding said that the closing time was once again terrible for her and the company. When the projects began to gather funds in early spring, President Trump announced tariffs that caused uncertainty and reduced the costs of some corporations.
The company refrained from raising funds at that point, because the limited partners were nervous about investing, taking into account the uncertain climate. “And of course we started funds this week, so once again a terrible time,” she said.
As for Fielding’s startups, she said it was difficult to attend and see in this matter. She said that the founders must all the time think about the B plan, especially since the capital is finished.
“If it is a week, it is possible to manage,” she continued. “But when it becomes weeks, it can become uncomfortable.”
Garima Kapoor co-founder of the company Minio with her husband AB, who got here to the USA for the H-1B visa just over ten years ago. She said that the startups should start preparing now in case the closing of the government is extended.
“When government agencies release, offers in highly regulated industries, such as FinTech, Health Tech or M&A, can stop. Even companies operating outside the federal sphere could face a decreasing valuation and more difficult conditions, because greater uncertainty penetrates the market,” said Techcrunch.
In general, the founders should remain proactive, go through partners and investors and plan “carefully on slipping,” she said, noting that transparency and equalization will probably be crucial here.
“Ready will separate those who survive disturbances from those who are caught flat.”
Chib repeated this sentiment. “Their resistance is part of what drives progress,” he said. “To those who face these challenges, know that it will also pass. Persistent.”