It starts as hiring freezes and funding drying up, it ends in mass layoffs.
In a year or two the crash will be obvious, everyone will be certain investing is a terrible idea, and it’ll be a great time to invest/start a company.
Not all companies need huge investment, and it's a good time to start a company when a lot of companies are dead or dying, and you can step into their market and buy their assets for cheap.
Because by the time you're ready for serious investment the cycle will have turned again. Many great companies are founded in downturns (possibly just because people are laid off, possibly because money stops being a motivating factor).
