83% of Startups Expect to Create New Jobs in 2011
Company News | April 21, 2011
SANTA CLARA, CA — April 22, 2011 — Silicon Valley Bank (SVB), financial partner to technology companies and venture capitalists worldwide, released Startup Outlook 2011, a survey of startup company perceptions, in conjunction with the Silicon Valley Leadership Group's Annual CEO Business Climate survey of its members companies today.
SVB's survey of 375 U.S.-based, private, venture capital-backed software, hardware, life science and cleantech companies revealed that startups are optimistic about current business opportunities, generally believe business conditions have improved and are improving further, and that they will continue to hire to support their growth. Nationwide 83% plan to hire this year, up significantly from the already high percentage (73%) of startups that reported plans to hire in last year's report.
"Because we work with amazing companies everyday that are creating new services and even industries, we have always known intuitively that the innovation sector will lead the U.S. in economic recovery," said Greg Becker, CEO of SVB Financial Group and Silicon Valley Bank. "This new data, however, clearly shows that technology companies met or beat their 2010 revenue targets, are still experiencing improved business conditions and are creating U.S. jobs. There is no question that the innovation sector is making a tangible impact on the U.S. economy and our ability to compete globally."
Respondents by and large identify access to equity capital and the regulatory and political environment as their largest impediments to growth. Across startups, the regulatory issues of greatest concern were uncertainty about new regulations, the impact the overall regulatory environment has on risk taking, and health care reform. Life science companies are particularly concerned about the impact the regulatory environment is having on their ability to thrive: 64% of these companies say the regulatory environment is a challenge and 83% say the government could help them grow by improving the FDA approval process.
"Our policymakers want to help startups succeed, but the policymaking process is not designed to give entrepreneurs a real voice," said Mary Dent, General Counsel and head of government relations for SVB Financial Group. "We launched Startup Outlook last year to help bring entrepreneurs' issues and ideas to policymakers so they can help create an environment in which American innovators can build thriving businesses in the U.S."
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, Silicon Valley Bank 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, multi-national corporations. SVB also works with companies in several overseas markets and has $1.5 billion in investment funds under management.
Independent market research firm Koski Research conducted the online Startup Outlook survey for SVB Financial Group in February 2011.
About Silicon Valley Bank
Silicon Valley Bank provides commercial banking services to emerging growth and mature companies in the technology, life science, private equity and premium wine industries. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and five international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), along with SVB Analytics, SVB Capital, and SVB Global. 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.
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