Why Now Is the Best Time to Start a Startup (Even Without AI)

The context: a contraction that isn't what it seems

Headlines about the startup ecosystem often focus on funding figures. In Q1 2026, aggregate venture capital data in Europe showed a mixed picture, but when discounting AI investment, the non-AI market contracted 40% year-on-year in deal volume, according to Crunchbase data compiled by EU-Startups. However, this contraction hides a deeper transformation: the cost of building a company from scratch has plummeted, and founders are approaching funding rounds with more traction and better preparation than ever.

What has really changed?

Twenty years ago, setting up an online store required an investment of over €100,000 before selling the first product. Today, with Shopify and third-party logistics providers, a founder can launch a direct-to-consumer brand from their kitchen for under €2,000. The same goes for product development: no-code platforms and vibe coding allow creating an MVP without a team of engineers. Collins Dictionary chose 'vibe coding' as the word of the year 2025, a term coined only in February of that year.

Marketing has also been democratized. Personalization tools built into Meta and Google allow any founder with a business instinct to run targeted campaigns that once required an agency. Even pitch preparation, once a secret art passed down in accelerators, is now accessible to everyone thanks to free templates and frameworks.

The founder of 2026: more prepared, more efficient

Investors reviewing today's pitch decks notice a marked improvement compared to a decade ago. Founders arrive with polished presentations, more developed products, validated metrics, and a clear understanding of their unit economics—something that was previously only possible in advanced companies with full teams of experts. This higher quality reduces risk for investors and accelerates time to product-market fit.

The role of AI agents

Artificial intelligence and agentic workflows represent the newest and potentially most significant development. Tools like ChatGPT, Claude, or coding assistants allow a single founder to perform tasks that once required a team: copywriting, image generation, data analysis, automated customer support. This not only reduces costs but enables entrepreneurs to validate business hypotheses in days instead of months.

Implications for the ecosystem

This combination of lower barriers to entry and higher founder quality has several consequences:

• More startups are born with less capital: bootstrapping becomes viable in more sectors, reducing dependence on external investors.
• Investors become more selective: with more startups showing early traction, capital will concentrate on those with solid metrics.
• Innovation speed accelerates: faster trial-and-error cycles allow more agile product iteration.
• Talent is redistributed: founders no longer need to hire large teams from day one, changing team formation dynamics.

What readers should know

If you're considering starting a business, this is a favorable time. The tools available today allow you to start with much lower financial risk than at any other point in history. However, the ease of entry also means more competition. The key lies in execution and the ability to leverage these tools to generate real traction before seeking external funding. The non-AI capital market has contracted, but startups that manage to demonstrate efficient traction will find investors willing to bet on them.

"The cost of building a company has dropped dramatically, and founders are better prepared than ever. This is the best window to start a business in decades."