Why we believe downturns are the best time to build durable companies

At Vortex IQ, we launched and scaled during what many called a “down cycle” for tech.

VC funding was down.
Startups were cutting back.
And yet—we chose to build, hire, and launch.

Not out of defiance. But by design.

Here’s our philosophy on why downturns don’t scare us—they sharpen us.

1. Constraints Breed Clarity

When capital is easy, it’s tempting to:

  • Over-hire
  • Chase vanity metrics
  • Build bloated features

But when every hire, every sprint, and every pound counts—you focus.

We asked ourselves:

  • What problem must we solve?
  • What feature drives measurable impact?
  • What’s our leanest path to revenue?

Downturns don’t kill ambition. They kill distraction.

2. Strong Foundations Are Built in the Quiet

When everyone is chasing headlines, it’s hard to think long-term.
But during a downturn, the noise fades.

That’s when:

  • Real relationships are built
  • Real problems are explored
  • Real product-market fit emerges

You don’t need momentum. You need direction.

3. Efficiency Is a Competitive Advantage

In good times, speed looks like scale.
In downturns, sustainable velocity wins.

At Vortex IQ, we:

  • Used AI agents to automate internal ops
  • Delayed non-critical spend
  • Prioritised profit-generating features over shiny experiments

Unit economics aren’t a constraint — they’re your compass.

4. Your Early Customers Are Gold

Downturn buyers are discerning.
If they’re willing to pay now, they’re really feeling the problem.

These early customers become:

  • Case study champions
  • Product co-creators
  • Long-term retention stories

Downturns filter out the nice-to-have.

5. Culture Is Stress-Tested Early

Pressure reveals culture.

We built a team that:

  • Embraced ambiguity
  • Took ownership without micromanagement
  • Found joy in small wins, not just big headlines

The result?
A resilient culture that doesn’t panic—it prioritises.

6. Investors Remember Who Built in the Storm

When the cycle turns (and it always does), investors look for:

  • Proof of grit
  • Capital-efficient growth
  • Teams that execute regardless of hype

By showing traction in a tough market, you stand out—not just as a bet, but as a business.

When others wait, builders lead.

What We Optimised for During the Downturn

Area Our Focus
Product Fast feedback loops + agent-led workflows
Revenue ARR before MAUs
Hiring Generalists with founder mindset
Brand Thought leadership > paid growth
Fundraising Strategic angels > spray-and-pray

Final Thought

Building during a downturn isn’t brave.
It’s strategic.

It forces you to:

  • Focus on first principles
  • Listen more than you speak
  • Build what lasts, not what trends

So if you’re building now — you’re not behind.
You’re early.