Becker said, "This year's survey shows that access to talent is a persistent challenge for startups. Although the stat dropped slightly this year, 90 percent still say it is challenging to find the talent they need to grow their business. With this in mind, changes to immigration policy have the potential to add a new complexity. One-quarter of the U.S. startups we surveyed indicate existing government policies caused them to move operations overseas, and of those, 38% cited U.S. immigration policy as the reason. It's in the best interest of the U.S. to focus on both education and high-skilled immigration to increase the skilled talent pool for these job-creating companies."
The Startup Outlook survey was conducted in November 2016 immediately after the U.S. presidential election. Most respondents are startup executives of companies with fewer than 50 employees and less than $10 million in annual revenue:
- 57 percent of executives believe U.S. business conditions will be stronger than 2016; the number of respondents who think conditions will improve year over year has declined by 25 percentage points since 2014
- 88 percent say raising money is "challenging" or "extremely challenging," an increase over the previous three years
- 51 percent of startups say their next source of funds is most likely to be venture capital
- 50 percent say they expect more M&As to occur this year, up 7 percentage points from 2016
- 53 percent of companies view an acquisition as their long-term exit strategy, while 16 percent are planning for an eventual IPO
Hiring & Diversity
- 90 percent say that finding appropriate talent is difficult, down five percentage points from 2016
- 70 percent say they do not have women on their boards and 54 percent employ no women in executive positions
- While access to talent remains the top policy concern, healthcare costs moved up and is now the second most-cited policy issue
- 26 percent of respondents say that regulations prompted them to locate facilities or move non-sales operations outside the U.S.; the top reasons were immigration policy (38 percent), tax policy (32 percent) and the regulatory environment (30 percent)
For additional survey data, including a closer look at hiring, fundraising and respondents' views on public policy issues, please visit: www.svb.com/startup-outlook-report/. U.K. and China survey results also can be found here.
Follow the conversation on Twitter at @SVB_Financial and @SVB_UK with #StartupOutlook.
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SOURCE Silicon Valley Bank