Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.S. startups are emerging from a healthy recalibration, and tech and healthcare entrepreneurs tell SVB that while they are less optimistic about future business conditions compared to recent years, they expect to hire, see improved exit paths and plan to tap venture capital to grow.
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.K. startups are planning for Brexit, and tech and healthcare entrepreneurs tell Silicon Valley Bank that while they are less optimistic about future business conditions compared to recent years, most plan to hire and keep their headquarters in Britain.
Silicon Valley Bank's Life Science and Healthcare Startup Outlook Report examines how the industry's executives view 2017's opportunities and challenges. The report includes startups' thoughts on public policy issues as well as their expectations for fundraising and hiring.
Key insights from Silicon Valley Bank's Startup Outlook Report. SoCal startups are fueled by a flourishing ecosystem that includes a growing number of local equity capital sources from both venture capitalists and corporate investors. While their outlook is cautiously optimistic, they continue to hire.
In our annual report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Four months in, 2017 is shaping up to be a year of harvesting and replanting for the innovation economy.
The SVB Analytics team examined the private-company growth propelled by the large capital raises of 2014-15
and the subsequent plunge in large investments and exits in 2016. Given the activity we’ve seen in the first
quarter of 2017, we are forecasting significant harvesting of returns resulting from the last decade of sweeping
innovations.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the UK, US and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and China reports at www.svb.com/IEO.
Trends in Healthcare Investments and Exits: Mid-Year 2017Silicon Valley Bank
In our mid-year 2017 report on healthcare investing, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Investment and fundraising in the healthcare ecosystem saw a banner first half of 2017, driven in part by advancements in artificial intelligence and machine learning for healthcare applications and a surge in Series A investments, particularly in biopharma.
In a new report, SVB Analytics examines the challenges facing stakeholders in the U.S. healthcare system, the solutions made possible by technology advancements and opportunities for entrepreneurs and investors.
Learn more here: http://www.svb.com/Blogs/Alex_Lee/Digital_Health__Mapping_Digital_Health_Solutions/
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.K. startups are planning for Brexit, and tech and healthcare entrepreneurs tell Silicon Valley Bank that while they are less optimistic about future business conditions compared to recent years, most plan to hire and keep their headquarters in Britain.
Silicon Valley Bank's Life Science and Healthcare Startup Outlook Report examines how the industry's executives view 2017's opportunities and challenges. The report includes startups' thoughts on public policy issues as well as their expectations for fundraising and hiring.
Key insights from Silicon Valley Bank's Startup Outlook Report. SoCal startups are fueled by a flourishing ecosystem that includes a growing number of local equity capital sources from both venture capitalists and corporate investors. While their outlook is cautiously optimistic, they continue to hire.
In our annual report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Four months in, 2017 is shaping up to be a year of harvesting and replanting for the innovation economy.
The SVB Analytics team examined the private-company growth propelled by the large capital raises of 2014-15
and the subsequent plunge in large investments and exits in 2016. Given the activity we’ve seen in the first
quarter of 2017, we are forecasting significant harvesting of returns resulting from the last decade of sweeping
innovations.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the UK, US and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and China reports at www.svb.com/IEO.
Trends in Healthcare Investments and Exits: Mid-Year 2017Silicon Valley Bank
In our mid-year 2017 report on healthcare investing, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Investment and fundraising in the healthcare ecosystem saw a banner first half of 2017, driven in part by advancements in artificial intelligence and machine learning for healthcare applications and a surge in Series A investments, particularly in biopharma.
In a new report, SVB Analytics examines the challenges facing stakeholders in the U.S. healthcare system, the solutions made possible by technology advancements and opportunities for entrepreneurs and investors.
Learn more here: http://www.svb.com/Blogs/Alex_Lee/Digital_Health__Mapping_Digital_Health_Solutions/
What does the rest of 2016 hold for innovation companies? In a mid-year update on State of the Markets, the SVB Analytics team analyzed data from the first half of 2016 to identify key trends impacting SVB's clients.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the US, UK and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the UK and China reports at www.svb.com/IEO.
The IPO Window Reopens:
We finally saw the IPO window crack open in Q3 2016, as proceeds from technology M&A are leaving investors flush with cash to reinvest and driving demand for IPOs and follow-on offerings.
In this third-quarter update on State of the Markets, my team analyzed investment and exit data to identify key trends impacting clients:
1. The number of IPOs exceeded private IPOs for the first time since Q2 2013, as crossover investors’ interest in large pre-IPO financings dropped off.
2. In the U.S., the pace of unicorn exits in Q3 exceeded new entrants.
3. After plummeting in the first half of 2016, values of publicly traded unicorns showed signs of recovery.
Learn more by reading the new State of the Markets report. As with any review of the markets, conditions can turn quickly. We are, however, confident that the fundamentals driving innovation will be strong through the end of 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
In its mid-year report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jonathan Norris also provides his view of what's on the horizon for the second half of 2016.
What does 2017 hold for the Innovation Economy? In the latest State of the Markets report, SVB Analytics took a rear-view approach, identifying the factors that mattered most in 2016 and examining which trends and themes will play out in 2017.
Trends in Healthcare Investments and Exits 2018 - Mid-Year ReportSilicon Valley Bank
In our mid-year Healthcare Investments and Exits report, we analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
For the 10th year, Silicon Valley Bank is proud to present
our Startup Outlook Report. The innovation economy has
expanded greatly in the US and abroad in the past decade,
and so has Startup Outlook. In our first report, we surveyed
300 people, most of them in California. The 2019 report
includes the perspectives of nearly 1,400 technology and
healthcare founders and executives primarily in major
innovation hubs across the US, the UK, China and, for the
first time, Canada.
The outlook for the Chinese tech sector is strong, with a large number of startups saying they expect more M&A opportunities. Access to talent and raising capital remain challenging. Compared to the US and UK, a higher percentage of Chinese startups have women in senior company roles and at least one woman on
the founding team.
What does the rest of 2016 hold for the innovation economy? SVB Analytics' State of the Markets Report provides a summary of key market indicators impacting the innovation economy, including venture capital funding and valuation trends, crossover investor activity, and what’s ahead for the second half of 2016.
For the first time, SVB surveyed technology and life science entrepreneurs based in Canada. Like their counterparts in the US, UK and China, Canadian startups are optimistic about the year ahead even amid economic volatility. And while eager to hire and fundraise, they recognize the challenges they face. Most startups say Canadian government support of the innovation economy is having a positive impact. When it comes to gender parity, 60 percent of Canadian startups have at least one woman in an executive position. Looking ahead, we asked which technologies will have the most promise a decade from now: Canadian startups say AI and life science.
Silicon Valley Bank’s Trends in Healthcare Investments and Exits report analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jon Norris also gives his annual forecast of what’s likely to happen in 2016.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed bio-pharma and medical device companies.
The study found that healthcare IPOs tripled in 2013, leading to record potential IPO/big exit returns of $12.5 billion.
For a detailed analysis access the report at: http://www.svb.com/healthcare-report_2014/.
**Report updated on 8/4/2014
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
Upfront Ventures surveyed Limited Partners (LPs) on their outlook on the venture capital markets and the underlying technology startups we back. This presentation created in Q1 2017 shares this outlook.
Migrate Your Payments Platform Without Disrupting Your BusinessSilicon Valley Bank
Switching to a more robust payment platform can deliver benefits including better approval ratios, enhanced reporting, quicker funding, global payment acceptance and improved security. We'll review five key questions to gain an understanding of platform transition steps and share a helpful checklist for creating a project plan.
The SVB Asset Management Economic Report, Q1 2017, is a review of and outlook on economic and market factors that impact global markets and business health.
In this edition, the team discusses the Fed's recent activity and its intentions to raise benchmark interest rates three times in 2017. The report also focuses on how the new U.S. administration will impact domestic and global economies.
What does the rest of 2016 hold for innovation companies? In a mid-year update on State of the Markets, the SVB Analytics team analyzed data from the first half of 2016 to identify key trends impacting SVB's clients.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the US, UK and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the UK and China reports at www.svb.com/IEO.
The IPO Window Reopens:
We finally saw the IPO window crack open in Q3 2016, as proceeds from technology M&A are leaving investors flush with cash to reinvest and driving demand for IPOs and follow-on offerings.
In this third-quarter update on State of the Markets, my team analyzed investment and exit data to identify key trends impacting clients:
1. The number of IPOs exceeded private IPOs for the first time since Q2 2013, as crossover investors’ interest in large pre-IPO financings dropped off.
2. In the U.S., the pace of unicorn exits in Q3 exceeded new entrants.
3. After plummeting in the first half of 2016, values of publicly traded unicorns showed signs of recovery.
Learn more by reading the new State of the Markets report. As with any review of the markets, conditions can turn quickly. We are, however, confident that the fundamentals driving innovation will be strong through the end of 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
In its mid-year report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jonathan Norris also provides his view of what's on the horizon for the second half of 2016.
What does 2017 hold for the Innovation Economy? In the latest State of the Markets report, SVB Analytics took a rear-view approach, identifying the factors that mattered most in 2016 and examining which trends and themes will play out in 2017.
Trends in Healthcare Investments and Exits 2018 - Mid-Year ReportSilicon Valley Bank
In our mid-year Healthcare Investments and Exits report, we analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
For the 10th year, Silicon Valley Bank is proud to present
our Startup Outlook Report. The innovation economy has
expanded greatly in the US and abroad in the past decade,
and so has Startup Outlook. In our first report, we surveyed
300 people, most of them in California. The 2019 report
includes the perspectives of nearly 1,400 technology and
healthcare founders and executives primarily in major
innovation hubs across the US, the UK, China and, for the
first time, Canada.
The outlook for the Chinese tech sector is strong, with a large number of startups saying they expect more M&A opportunities. Access to talent and raising capital remain challenging. Compared to the US and UK, a higher percentage of Chinese startups have women in senior company roles and at least one woman on
the founding team.
What does the rest of 2016 hold for the innovation economy? SVB Analytics' State of the Markets Report provides a summary of key market indicators impacting the innovation economy, including venture capital funding and valuation trends, crossover investor activity, and what’s ahead for the second half of 2016.
For the first time, SVB surveyed technology and life science entrepreneurs based in Canada. Like their counterparts in the US, UK and China, Canadian startups are optimistic about the year ahead even amid economic volatility. And while eager to hire and fundraise, they recognize the challenges they face. Most startups say Canadian government support of the innovation economy is having a positive impact. When it comes to gender parity, 60 percent of Canadian startups have at least one woman in an executive position. Looking ahead, we asked which technologies will have the most promise a decade from now: Canadian startups say AI and life science.
Silicon Valley Bank’s Trends in Healthcare Investments and Exits report analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jon Norris also gives his annual forecast of what’s likely to happen in 2016.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed bio-pharma and medical device companies.
The study found that healthcare IPOs tripled in 2013, leading to record potential IPO/big exit returns of $12.5 billion.
For a detailed analysis access the report at: http://www.svb.com/healthcare-report_2014/.
**Report updated on 8/4/2014
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
Upfront Ventures surveyed Limited Partners (LPs) on their outlook on the venture capital markets and the underlying technology startups we back. This presentation created in Q1 2017 shares this outlook.
Migrate Your Payments Platform Without Disrupting Your BusinessSilicon Valley Bank
Switching to a more robust payment platform can deliver benefits including better approval ratios, enhanced reporting, quicker funding, global payment acceptance and improved security. We'll review five key questions to gain an understanding of platform transition steps and share a helpful checklist for creating a project plan.
The SVB Asset Management Economic Report, Q1 2017, is a review of and outlook on economic and market factors that impact global markets and business health.
In this edition, the team discusses the Fed's recent activity and its intentions to raise benchmark interest rates three times in 2017. The report also focuses on how the new U.S. administration will impact domestic and global economies.
TMT Outlook 2017: A new wave of advances offer opportunities and challengesDeloitte United States
Important trends continue to shape the technology, media, and telecommunications (TMT) industry. What developments should you anticipate in 2017? https://subscriptions.deloitte.com/default.aspx?eventid=1323075
Silicon Valley Bank Startup Outlook 2012 Webinar PresentationSilicon Valley Bank
Startup Outlook 2012 is Silicon Valley Bank's annual survey of perceptions by startup CEOs in software, hardware, life science and cleantech sectors nationwide.
This is the slide deck from a Webinar offered on 5/16/12 to discuss the survey's findings.
The survey revealed that the tech sector in the U.S. is healthy, hiring, has great business qualities and that startups are optimistic. At the same time, entrepreneurs and startup managers questioned whether the network of policies that support the U.S. innovation economy is optimized for growth.
When you need tighter controls and maximum spending visibility, the way your company pays is key. Try these five tactics for sharpening your use of company credit cards.
“Business and economic outlook” is a survey that explores the perceptions of top executives from major companies operating in Romania regarding the business outlook for 2016. This report is based on an online survey of 421 C-suite level executives from companies in various sectors, who provided a perspective on how the domestic business environment is perceived at the beginning of 2016 in Romania. This is an analysis of the split between the aggregated results for Romanian-owned companies and foreign-owned companies operating in Romania.
China's Manufacturing Sector - the End of a Great Growth Era? www.solidiance.comSolidiance
Following decades of its rapid growth, China's construction sector is hitting an unprecedented slowdown. As foreign players struggle in the challenged market, China's homegrown manufacturers are still expanding their business as well as extending more credit to customers.
To cope with the issue and maintain a steady growth pattern in China, the industry players need to apply tactful actions and new China market strategies. This document is extracted from a presentation by Pilar Dieter, Solidiance's China Principal during the "CHaINA 2012" conference in Shanghai, November 2012, and provides some foresight on the China Manufacturing and Construction sectors.
What's up, down and trending?
A talk by CEO of Business News on the business environment in 2017 in Western Australia.
- how do you know if you're going in the wrong direction?
- who's doing well? and not so well?
- where are the trends heading?
- how is Business News going?
Silicon Valley Bank's Startup Outlook 2018 captures perspectives from US technology and healthcare entrepreneurs on the opportunities and challenges they see ahead for startups.
US startups tell SVB they are entering 2018 with confidence:
- Nearly two of three US startups believe that 2018 will be better than last year
- The number that plan to hire is at a five-year high
- Most startups expect M&A activity to stay strong
- Venture capital remains the go-to source for future funding
Read more at http://bit.svb.com/2DLLcgZ
76% of executives in the U.S. innovation sector plan to grow their workforce in 2014, and 82% percent of executives say business conditions will improve in the coming year, according to Silicon Valley Bank's 2014 Innovation Economy Outlook study. These findings are based on Silicon Valley Bank's annual survey of more than 1,200 executives from software, hardware, cleantech and healthcare companiesin startup and growth stages of business in the US, UK and other global innovation hubs. In addition to the high rate of anticipated job creation, the study also reveals pervasive optimism, intent to access international markets for sales, and the ever-present challenge to obtain equity capital by some of the most innovative, high-growth companies in the world.
This is First Round's effort to provide an in-depth snapshot of what founders across the entire tech ecosystem are thinking and doing, what they're excited about and worried about, and how they're seeing the market. We surveyed venture-backed founders from everywhere — less than 25% from the First Round community — and received over 500 responses, volunteering their experience and opinions.
In this issue of Agency Food, we look at what
makes agency heads tick. We ask why you set up
in business in the first place, what your agency
ambitions are and your hopes and dreams for the future.
Nearly eight in ten executives in the global innovation sector plan to grow their workforce in 2014, and more than nine in 10 say it is a challenge to find the talent they need to do so, according to Silicon Valley Bank's 2014 Innovation Economy Outlook study. These findings are based on Silicon Valley Bank's annual survey of more than 1,200 executives from software, hardware, cleantech and healthcare companiesin startup and growth stages of business in the US, UK and other global innovation hubs. In addition to the high rate of anticipated job creation, the study also reveals pervasive optimism, intent to access international markets for sales, and the ever-present challenge to obtain equity capital by some of the most innovative, high-growth companies in the world.
Marlow Felton, Chris Felton • Transamerica Financial Advisors Inc.
- A Millennial’s perspective: How we really feel about money and investing by Nick Halle
- The continuous bid under the market
- The force of Supply at major tops in the U.S. equity market by Tracy L. Knudsen, CMT
- Working a structured referral process (Don Meredith, Lincoln Financial Advisors Corp.)
Dois terços dos Millennials desejam deixar até 2020 as organizações onde trabalham atualmente. As empresas devem ajustar-se às melhores formas de fomentar a lealdade dos Millennials, sob o risco de perderem uma elevada percentagem da sua força de trabalho.
The SVB State of the Markets report provides a quarterly update on the health and productivity of the global innovation economy. This quarter's report includes a special section on the booming Chinese tech industry.
Our annual report finds significant numbers of startups continue to have no women in leadership, yet a growing percentage have programs in place to change that.
In our annual Healthcare Investments and Exits report, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
How Paperless Payables Can Streamline Ops and Improve Cash FlowSilicon Valley Bank
Digitizing your accounts payable can make your whole company more agile by simplifying accounting and monitoring costs. Use Silicon Valley Bank’s checklist to help with your company’s transition to paperless payables.
Paying your suppliers by credit card is a smart financial move that is good for cash flow, financial management and overall expense reduction. But to access these gains, your vendors must first agree to accept your card payments.
The SVB Asset Management Economic Report, Q2 2017, is a review of and outlook on economic factors that impact global markets and business health.
In this edition, the team discusses the U.K.’s Article 50 notice and the FOMC’s current path towards normalization. The report also examines the Trump Administration’s first 100 days in office and current business sentiment.
Silicon Valley Bank 2017 State of the Wine Industry ReportSilicon Valley Bank
The Silicon Valley Bank 2017 State of the Wine Industry Report identifies trends and current issues facing the U.S. wine industry and offers data and observations wineries can use to develop their business strategies.
Silicon Valley Bank's wine report is based on its in-house expertise as one of the largest bankers to the West Coast wine industry for nearly 20 years, a proprietary database of more than a decade of winery financials, ongoing research, and an annual survey of 500+ West Coast wineries. Learn more at http://www.svb.com/wine-report/.
Major Forecasts for 2017:
- Wines sold between $12 and $25 will grow in demand as will high-end luxury wines with an established brand. We expect to see small price increases in these segments, with volume and price drops for bottles priced under $9.
- Premium wine sales will increase between 10 and 14 percent above 2016 levels.
- Per capita consumption faces crosscurrents with retiring wine-loyal baby boomers being replaced by less affluent millennials who are ambivalent about their alcoholic beverage of choice. If economic conditions continue to improve, however, per capita consumption should be slightly higher in 2017.
- Today, millennials are beginning to affect the lower price range of premium sales. Their presence is most visible in the $8 to $11.99 red blend category, but they gradually will shift from blends to varietal wines or imports as their incomes grow.
- Even with winery M&A facing headwinds from higher interest rates, winery acquisitions should remain quite active through 2017.
- Farm labor supply and costs are the dominant concerns in the wine business in 2017.
Women hold influential positions in technology companies around the world, but there’s clearly room for more women in the C-suites and the boardrooms of the world’s most innovative companies. In our Innovation Economy Outlook 2016 survey of 900 executives worldwide, 63 percent say they have no women on their boards, and 44 percent have no women in executive positions, although that varies greatly when you look at it geographically.
Startup Outlook 2016: Women in Technology Leadership
US Startup Outlook Report 2017
1. U.S. Startup Outlook 2017
KEY INSIGHTS FROM THE SILICON VALLEY BANK
STARTUP OUTLOOK SURVEY
@SVB_Financial #StartupOutlook
2. U.S. Startup Outlook 2017 2
Silicon Valley Bank presents Startup Outlook 2017, the bank’s annual
report on the health of the innovation economy. This year, it comes at
a time of significant transition around the world and opportunity in
the innovation sector. In its eighth year, the Startup Outlook survey
asks entrepreneurs to share what they are thinking about business
conditions, access to capital and talent and the critical policy issues
that help or hinder their success.
Nearly 950 technology and healthcare executives, primarily from
the United States, United Kingdom and China, participated in the
survey, which was conducted shortly after the November 2016
United States presidential election. Given this timing, we did
recognize some uncertainty in the responses from what is historically
an optimistic group. As the United States transitions to a new
administration and the United Kingdom negotiates Brexit, startup
sentiments and markets may shift when policies and priorities become
clearer. In China, we’re seeing similar themes as the country navigates
a historic transition from an industrial to an innovation economy.
Against this backdrop, there is good news. The innovation sector is
building strength after a healthy recalibration in 2016. Public markets
have bounced back, jobs reports are more optimistic, investors are
doing deals, valuations are corrected, more funding options are
available and the exit market has improved. No matter where they are
located, at least 85 percent of entrepreneurs are expecting M&A, the
ultimate exit for most startups, to increase or stay the same. In the
United States, SVB is predicting the number of venture capital-backed
IPOs to double or even triple over 2016.
Here’s what else we see: There is more potential now for innovation
to thrive than in the last 25 years. The breadth of opportunity created
by old-world industries being transformed by technology continues to
expand globally. Still, companies forming now will have to prove their
value with a higher bar as investors continue to identify opportunities
with the most promise. We have a long-term positive outlook for the
innovation economy, but individual startups will face challenges.
It’s the nature of the business of building disruptive companies. So
mindful of the unicorn lineup awaiting exits, we will not be surprised
to see companies struggle and fail this year, potentially even more
than in recent years. This is healthy innovation.
Thank you for your interest in Startup Outlook 2017. We hope the
findings can be useful as you chart your own path or follow this sector.
Looking globally, the opportunities for innovation are abundant.
Greg Becker
President and CEO, Silicon Valley Bank
Strength in the Innovation Sector
LETTERFROMSVBCEO
3. U.S. Startup Outlook 2017 3
Industry sector Profitable
56% Yes
44% No
Ownership
69%
Technology
(net)
15%
Healthcare
(net)
16%
Other
Revenue stage
Total
respondents
941
Primary place of business
62%
U.S.
14%
U.K.
16%
China
8%
Other
17%
Pre-revenue
65%
Up to $25 million
in revenue
18%
More than
$25 million
in revenue
95%
Private
5%
Public
ABOUTTHESURVEY
Our eighth annual survey of technology and healthcare executives offers insight into what’s on the minds of innovation leaders
today. For this year’s survey, we received 941 responses covering such topics as how innovation companies are faring, hiring
projections and how government policies are affecting business growth.
About the Startup Outlook 2017 survey
Peerless Insights Survey, a third-party firm, conducted the Startup Outlook 2017 survey online on Silicon Valley Bank’s behalf from November 14, 2016, to January 3, 2017.
4. U.S. Startup Outlook 2017 4
Following a year of healthy recalibration, U.S. startups are
guardedly optimistic about 2017. The transition to a new
administration in Washington, D.C., combined with investors
gaining more power over entrepreneurs, brings some
uncertainty. Still, the M&A environment is strong, and not
only are most startups hiring, there are signs that finding
the right talent may be getting easier. Innovation continues
to be a key driver of the U.S. economy in 2017.
U.S.STARTUPOUTLOOK
5. U.S. Startup Outlook 2017 5
Uncertainty may
be weighing on
startups’ outlook
While 92% say business conditions in 2017 will
be the same or better than 2016, this naturally
optimistic group is less hopeful that this year
will be better for their companies. Few think
conditions will get worse, but the percentage of
those who say business conditions will be “much
better” in 2017 (21%) has dropped by nearly half
since 2014 (39%). We chalk some of that up to
uncertainty, as well as more realistic expectations
following a healthy recalibration in 2016.
Describe your outlook on business conditions
for your company this year compared to last:
82% 77% 64% 57%
14% 19%
29%
35%
4% 4% 7% 8%
2014 2015 2016 2017
Same or better
Worse
Will be better Will stay the same Will be worse
BUSINESSCONDITIONS
6. U.S. Startup Outlook 2017 6
88%82%81%81%
201620152014
FUNDING
Raising capital gets
more challenging
Fundraising is becoming more difficult for startups.
For the first time since 2014, fewer startups say
raising money was “not challenging.” Investor
interest in the innovation sector remains strong,
and capital is available to deploy. Startup
executives are clearly feeling, however, that
the bar has been raised to acquire growth
capital for their companies.
What is your view of the current fundraising environment?
Extremely or somewhat challenging
2017
7. U.S. Startup Outlook 2017 7
Venture
capital
Private
equity
Corporate Angel/
Micro VC
Organic
growth
Other
42%
21%
51%
16%
FUNDING
Startups increase
reliance on venture
capital
For private companies that recently raised funds,
venture capital becomes an even more important
source of capital in the future: 51% of startups
say their most likely next source of funds is
venture capital. This is despite fewer early-stage
fundings by VCs in 2016. Corporate investors
are increasingly viewed as an important capital
source, cited by 11% of respondents, surpassing
private equity at 8%.
What do you expect to be your company’s
next source of funding?
Other includes: individuals, bank debt, IPO, grant, crowdfunding, merger.
9% 9% 8%
7% 7%11% 11%
8%
2016 2017
8. U.S. Startup Outlook 2017 8
Startups say M&A
is their most likely
exit strategy
For the second year running, acquisition
continues to be the dominant realistic, long-term
exit strategy of U.S. startups. Despite public
interest and excitement around startup IPOs,
many more startups are acquired than go public.
What is the realistic long-term goal for your company?
FUNDING
18%
Stay private
13%
Don’t know
16%
IPO
53%
View acquisition
as the long-term
goal
9. U.S. Startup Outlook 2017 9
M&A is expected to be
even stronger in 2017
Nearly nine of 10 startups predict as many or
more mergers and acquisitions in 2017. Fully half
say they expect more acquisitions, which is an
increase from 43% a year ago. One of the more
interesting M&A trends is the increased appetite
of acquirers outside the technology sector,
creating additional opportunities for startups.
How do you think the M&A market will change in 2017?
FUNDING
50%
Expect more
acquisitions
12%
Fewer
acquisitions
38%
No change
10. U.S. Startup Outlook 2017 10
HIRING&TALENT
What are your projections for hiring new
employees this year?
Hiring, and layoffs, are
consistent over time
For the last four years, startups have consistently
reported they would be growing far more than
reducing the size of their workforce. Startups
are required to be nimble and flexible, adjusting
the size and makeup of their workforce as a normal
course of growth. We see the flow of startup
employees in and out of companies as a constant,
not as a meaningful negative shift this year.
2014
2015
2% 79%
2016
2017
Reduce workforce Increase workforce
1% 78%
2% 77%
2% 76%
11. U.S. Startup Outlook 2017 11
HIRING&TALENT
How challenging is it to find workers with the skills
necessary to grow your business?
Talent crunch showing
signs of easing
A year ago, when 95% of executives said it
was challenging to find people with the skills
necessary to help grow their businesses, we
predicted it was possible that the talent crunch
had reached its peak. It’s too soon to call it
a trend, but it does appear that the very tight
labor market has loosened a little. Innovation
executives say the lack of skilled workers
inhibits product development and makes
it difficult to scale operations.
20142013 2015
87% 91% 94%
90%
95%
2016 2017
Respondents who say finding talent is challenging or extremely challenging
12. U.S. Startup Outlook 2017 12
HIRING&TALENT
The ratio isn’t
changing
Women in tech leadership has been a topic
of conversation in Silicon Valley and globally
for several years. It is well-known that women
are underrepresented on startup boards and in
the executive suite. For all the work being done
to change this ratio in the U.S., this year’s survey
respondents report there is no progress in the
aggregate. Leading into 2017, 70% of startups
report having no women on their boards, and
more than half (54%) have no women in executive
positions. One quarter of startups say they
have programs in place to increase the number
of women in leadership roles, which has been
consistent year over year.
Percentage of startups with no women
in leadership positions:
No women on
board of directors
No women in
executive positions
2015 2016 20172015 2016 2017
68%
53%
66%
46%
70%
54%
13. U.S. Startup Outlook 2017 13
PUBLICPOLICY
What are the most important public policy issues
affecting companies like yours?
Healthcare costs
climb in importance
for startups
More than half of startups surveyed say access
to talent is the most important public policy issue
affecting companies like theirs. Heathcare costs
jumped to the No. 2 spot over cybersecurity on
the 2017 list, followed by corporate taxes and
patent litigation. For more perspective on these
issues, and to learn entrepreneurs’ ideas for the
new administration, see Startups to President
Trump: Ideas to Grow the U.S. Innovation Economy.
Note: Respondents were given the opportunity to select multiple responses.
34%
40%
53%
28%
24%
Access
to talent
Healthcare
costs
Corporate
taxes
Patent
litigation
Cyber
security
14. U.S. Startup Outlook 2017 14
Policy is driving
some U.S. startup
operations offshore
One in four respondents say that laws and
regulations prompted them to locate facilities
or move non-sales operations outside the U.S.
Pre-revenue startups are more likely to leverage
international markets for facilities and employees.
PUBLICPOLICY
32%
Tax policy
30%
Regulatory
environment
38%
Immigration
policy
26%
Here’s why
Have U.S. laws and regulations materially affected your
company’s decision to locate facilities or hire employees
for operational non-sales activities outside the U.S.?
Hired or moved
operations
offshore
Yes