Government Shutdown Stalls Startup Growth with Delayed Deals and Visa Processing Halt

Government Shutdown Threatens Startups with Delayed Deal Flow and Visa Processing The ongoing U.S. government shutdown is causing concern among startups and the broader tech sector, as experts warn of delayed deal flow and visa processing for workers. The shutdown, which began on Tuesday, marks the first one in seven years and has already caused disruptions to various government agencies. According to investors, founders, and lawyers who spoke to TechCrunch, a prolonged shutdown could have severe consequences for startups, particularly those relying on international talent. "The unpredictability of the Trump administration coupled with a politically entrenched Congress makes it hard to predict when the shutdown will end," said one expert. Out of eight shutdowns since 1990, four have happened during Trump administrations; the last one lasted 35 days, the longest in modern history. The main concern is a slowed-down immigration process for startups, as the Department of Labor, which provides first approval for H-1B visas and green cards, is shut down. Immigration attorney Sophie Alcorn noted that the pipeline for hiring international talent will be severely impacted by the shutdown. "The visa process had already been upended when President Trump recently announced the application fee for an H-1B visa would increase to $100,000," she said. "This has caused sticker shock within the industry." The Department of Labor's shutdown is particularly concerning for startups, as it affects the processing of H-1B visas and green cards. Without these approvals, international workers may be unable to enter or remain in the country. Startups are also worried about delayed deal flow, as investors and founders rely on government agencies to process paperwork and approvals. "A prolonged shutdown will make it even more challenging for startups to secure funding and grow their businesses," said one investor. The current status of the shutdown is uncertain, with no clear end in sight. The Trump administration and Congress are engaged in a standoff over border security and immigration policies. As the shutdown continues, startups and the tech sector will be closely watching developments. In the meantime, experts recommend that startups prepare for potential delays by exploring alternative visa options or seeking guidance from experienced immigration attorneys. "Startups need to be proactive and plan ahead to mitigate the impact of the shutdown," said Alcorn. As the situation unfolds, TechCrunch will continue to provide updates on the effects of the government shutdown on startups and the broader tech sector. *Reporting by Techcrunch.*