Silicon Valley Bank has published its 2016 Startup Outlook Report; startups plan for growth despite uncertain times.
UK startups prepare for a new reality – after record levels of investment in 2015, UK startups are retooling strategies for a shifting economic environment, according to Silicon Valley Bank’s annual outlook survey of technology and life science executives. Startups are saying no to a British exit from the EU (Brexit) and are planning to hire—but they expect that finding the right talent will continue to be difficult. An increasing number of businesses will pursue venture capital funding in 2016. As they plan their growth strategies, executives are being cautious. International market volatility and a tough start to the year have everyone keeping a close eye on what’s next.
New reality prompts U.S. startups to focus on fundamentals – in 2016, the byword is prepare. The economic outlook is shifting, according to U.S. technology and life science startup executives surveyed in late 2015 for Silicon Valley Bank’s annual outlook. Capital is tightening and inflated valuations are declining, prompting companies to adjust to a more balanced funding environment and focus on fundamentals. Executives said they expected M&A to maintain its importance as an exit strategy, venture capital to be a vital funding source and attracting top talent to be a critical challenge. And, while the bottom line may be taking a hit short term, optimism about the long-term future of innovation is not.
Chinese startup executives seek venture capital, plan for IPOs – Chinese innovators are seeking venture capital to prime growth and say their long-term goal is to go public. They are also navigating challenges similar to those of other startups around the world. Entrepreneurs expect continued difficulty raising funds and finding the talent they need to move their businesses forward.
Read the full report here.