The closure of the US government could stifle the flow of agreements, freeze visa processing for workers and cause other problems for newly established businesses and the wider field of technology, especially if it takes more than a week, according to experts who spoke to TechCrunch.
The closure of the US government, which began on Tuesday, is the first in seven years. Trump’s unpredictable administration combined with a politically established conference makes it difficult To predict when closing It will end. By eight finishes from 1990, four have occurred during Trump Administrations; the latter lasted 35 days, the largest in modern history.
TechCrunch spoke to investors, founders and lawyers who warned of delaying the flow of agreements and workers’ visa processing. The visa process had already been upgraded when President Trump recently announced that the H-1B visa application will increase to $ 100,000-a number that caused stickers in the industry.
The main concern is a process of immigration that slows down for newly formed businesses, since the work department-which provides first approval for H-1B visas and green cards-is closed. The result, said Migration Lawyer Sophie Alcorn, is that the conductor for the recruitment and renewal of visas for high -skilled workers is fully frozen.
“This creates significant uncertainty about the labor force of a start, including founders who may be in visas,” he told TechCrunch.
“Visa workers are hard to close because their status depends on the government’s approvals,” added Michael Scarpati, chief executive and founder of the Fintech Retireus. “When procedures such as e-Verify or work certifications stop, workers are at risk of falling out of the regime, leaving their future in the US uncertain and causing additional disorders for businesses dependent on them.”
Thousands of technology workers are in visas, Many of them bring partners and children with them.
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“Many are understandable nervous about processing delays and how it affects their ability to stay and work,” said Chris Chib, chief executive of Solutions Company Bluefin Solles, at Techcrunch. “But just as these engineers help us to insist through complex challenges with ml algorithms and innovation. We owe them the same careful attention and commitment during this situation.”
The newly established companies may also be affected by delayed or stop allowing procedures and other regulatory requirements that could drain valuable funds and even lead to redundancies.
Jenny Fielding, Managing Director in everywhere, said that ongoing political uncertainty is always concerned. Although previous holidays had minimal financial implications, this could lead to layoffs if it lasts long.
“Since we are investing in many regulated areas, closure can potentially stop basic government functions, such as FDA approvals or aerospace licenses, which can be an existential threat to a startup of which the entire business model depends on a single -regulatory light.”
Fielding said the timetable of the finish has, once again, was terrible for her and the business. When everywhere began to start raising funds in early spring, President Trump announced the invoices that caused uncertainty and led to the cost for some companies.
The operation destroyed the raising of funds at that time because the limited partners were nervous for investment, given the uncertain climate. “And of course, we started raising funds this week, so once again, a terrible timetable,” he said.
As for the newly formed Fielding companies, he said it is difficult to wait and see in this case. Founders should always think of a plan B, he said, especially because capital is finite.
“If it’s a week of break, then this is manageable,” he continued. “But when it takes weeks, then it can get uncomfortable.”
Garima Kapoor founded the Minio software company with her husband AB, who came to the US in a H-1B visa just a decade ago. He said that the newly established businesses should start preparing now, only if the government’s interruption is prolonged.
“When government agencies are slowing down, it deals with high -adjustable industries, such as Fintech, Health Tech or M&A, can even grind, even companies operating outside the federal sphere could face shrinking valuations and tougher terms.”
Overall, the founders should remain preventive, communicate with partners and investors with transparency and plan “wisely for slipping”, he said, noting that clarity and alignment will be decisive here.
“The readiness will separate those who evolve the disorder from those caught with a flat back.”
Chib reacted this feeling. “Their durability is part of what drives progress forward,” he said. “To those who face these challenges, they know and that will pass.
