New Laws.

Is more expensive because everybody is paying a 21% more in taxes. So either the customer pays more, or the seller accepts to take a cut in their benefits to keep the price in a strategic value (below the product of his competitors)

To compensate it and survive, the startup needs now to find a way to produce the 'same' product 21% cheaper. For example, in China.

That invariably leads to your product being cloned for somebody and fake products invading your market.