US Startups Struggle to Find Talent Needed to Grow

Company news  |  February 14, 2013

CEOs and Executives from High Tech Startups Nationwide Call for a Larger Talent Pool and Immigration Reform in Silicon Valley Bank's Annual Startup Outlook Survey

SANTA CLARA, CA — February 14, 2013 — Silicon Valley Bank, financial partner to technology, life science and cleantech companies worldwide, found that while the vast majority (87%) of startups are hiring, equal numbers are struggling to find enough people with the skills they need to grow. The report is derived from anecdotes from numerous startup companies and the results of Silicon Valley Bank's fourth annual Startup Outlook study, a survey of startup companies nationwide.

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"Every time I meet with a group of tech company CEOs they say the same thing: hiring world-class talent is one of their biggest challenges," said Greg Becker, president and CEO of Silicon Valley Bank. "They struggle to find, attract and retain the engineering, scientific and technical talent they need to grow their businesses."

"We need to create a tech-savvy, highly skilled American workforce – the more people with skills that are in demand, the better for all of us. When it comes to immigration policy, we believe that Congress is well aware of the issues facing the technology industry, so the time to act is now."

High growth small companies, while few in number, have an outsized impact on the U.S. economy. They consume roughly 0.1-0.2% of U.S. GDP in invested capital, but create roughly 11 percent of U.S. private sector employment and 21 percent of U.S. GDP – or roughly twelve million jobs and over $3 trillion in annual revenues.

"With this report, and the Startup Outlook survey at large, we are trying to bring facts to the table in the hope that better data will help lead to better policies for our country," said Mary Dent, head of Silicon Valley Bank's government relations group and General Counsel.

Silicon Valley Bank conducted its annual Startup Outlook survey in December 2012. More than 750 executives of startup companies, defined as those in the innovation sector with less than $100 million in annual revenue, responded. The company will be releasing additional data and reports based on the survey in the coming months. View all news related to the results of the Startup Outlook survey at http://www.svb.com/startup-outlook-report/ and follow the conversation on Twitter at @SVB_Financial #StartupOutlook.

About Silicon Valley Bank
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 28 U.S. offices and six international operations. (Nasdaq: SIVB) www.svb.com.