Investors don’t invest based on the state of the economy. Investors invest in people, technologies, potential opportunities. It is all about taking calculated risks…
Assuming that you have something of interest and with great potential, if an investor is hesitant on investing in your startup, it is because there is just too much risk associated with your deal… You don’t have the right set of people, and/or there are no (sufficient) barriers to entry, and/or your company isn’t properly structured. Or maybe your investor community just “suck”; not all investor communities are created equal (i.e. not all investor communities get it).
But don’t give up… Remember that raising money is a very slow, painful, and adaptive process, and that the second idea is always the important one.
Related to this see What Bubble? VCs Still Pouring Money Into Web 2.0.
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