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74% of Technology Startups Expect to Create New Jobs in 2010

Company News  | 

74% of Technology Startups Expect to Create New Jobs in 2010
SVB Financial Group Survey Reports on Startup Business Conditions, Challenges and Requirements for Growth


SANTA CLARA, CA — April 19, 2010 — SVB Financial Group, the parent company of Silicon Valley Bank and financial partner to technology companies and venture capitalists worldwide, released a survey of startup company perceptions today, in conjunction with the Silicon Valley Leadership Group's Annual CEO Business Climate survey of its members companies.

SVB's survey of 304 U.S.-based early stage technology and life science companies with less than $5 million in annual revenue revealed that startups generally believe business conditions are showing signs of modest improvement. While differences were reported between industry sectors, as described in the full report, startups overall are optimistic, growing and importantly, hiring.

SVB's Startup Outlook 2010 Report: http://www.svb.com/10096/Special_Report__Startup_Outlook_2010/
SVLG's CEO Business Climate Survey: http://svlg.org/press/library/ceosurvey_2010.pdf

"Venture capital-backed companies stimulate significant revenue, jobs and competitive advantages for the U.S. In our nearly 30 years working with startups, we've seen entrepreneurs and innovative companies lead the way out of down cycles more than once," said Ken Wilcox, CEO of SVB Financial Group and Silicon Valley Bank. "It's in the country's best interest to create an environment where emerging technology and life science companies have access to capital, talent and the legislative support they need to grow."

The majority of emerging technology and life science companies surveyed said they are likely to hire new employees in 2010. In the face of extremely high unemployment levels, it's notable that nearly a quarter of all technology and life science startup companies also listed access to talent as a challenge. In 2008, once VC-backed companies employed 12.1 million people, generated $3 trillion in revenue and represented the equivalent of 21% of U.S. GDP, according to the National Venture Capital Association. Today, VC-backed companies continue to contribute significantly to job creation, and there are in fact 12,000 job openings at VC-backed companies listed on StartUpHire.com, an affiliate of the NVCA.

SVB's survey found that while most startups expected their 12-month performance outlook to improve, startups in every sector surveyed viewed access to capital during this period as a primary concern. Their responses reflect the impact of a steep 37% decline in venture capital investment in 2009, a lack of opportunities for startup companies to go public or get acquired, tightening loan requirements at many but not all banks, and significant declines in sales due to the general condition of the global economy.

SVB also asked respondents which areas the government should focus on to help create growth among startups. R&D grants, healthcare reform, appropriate tax policies and intellectual property protection topped the list.

Since 1983, SVB Financial Group has worked with venture capitalists to help thousands of technology and life science startup companies grow into large, productive businesses, creating jobs and innovative products and services that are used and sold worldwide. Today, SVB banks more than 500 venture capital funds and 50 percent of all venture-capital backed companies in the U.S., servicing them as they grow into mature companies. SVB also works with companies in several overseas markets and has $1.5 billion in investment funds under management. In 2009, SVB remained active in its target markets, meeting the needs of current and prospective clients through lending and a comprehensive array of financial and business services. In 2009, SVB added 1000 new clients, 400 of them borrowers.

About SVB Financial Group
For nearly three decades, SVB Financial Group and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs succeed. SVB Financial Group (Nasdaq: SIVB) is a financial holding company that serves companies in the technology, life science, venture capital and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services, SVB Financial Group provides clients with commercial, investment, international and private banking services. The company also offers funds management, broker-dealer transactions and asset management, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, Calif., SVB Financial Group operates through 27 offices in the U.S. and international operations in China, India, Israel and the United Kingdom. More information on the company can be found at www.svb.com.

Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.

Contact:
Carrie Merritt, SVB Financial Group, 503-574-3705, cmerritt@svb.com
Steve Wright, Silicon Valley Leadership Group, 408.501.7853, swright@svlg.org 

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