If you’re looking for funding, now is the time – study
THIS year looks like its going to be an optimistic one for aspiring entrepreneurs. On Tuesday, Silicon Valley Bank (SVB) released the findings from its 2018 Startup Outlook Report which surveyed startup founders from around the globe.
In the survey, respondents said that receiving funding in the early stages is easier now. Furthermore, top sources of funding was found to be through venture capitalists despite the increasing popularity of initial coin offerings. In addition, the report outlined some other interesting insights into the world of startups today:
Finding talented professionals is a big challenge for startups
Of the founders surveyed, 64 percent reported that the most challenging issue affecting their businesses was the (in)ability to recruit talent. Almost all founders reported extreme difficulty in finding professionals with the appropriate skills and knowledge level.
Hiring talented professionals to join the team can really transform a startup while mistakes can result in financial damages and affect the company culture significantly.
Other reported strains from founders who took part in the survey included concerns around healthcare costs and cybersecurity risks.
Placing women in leading roles is a priority
The report revealed that startup founders are making efforts to create a more diverse workplace by increasing the roles of leadership for women. And this effort is well needed seeing as almost three-quarters of the startups surveyed have no females in director roles.
According to a report by Tech Crunch, only 17 percent of US startups have a female founder. Furthermore, when it comes to fundraising, it has been found those startups who are female-funded raise a lower percentage of overall funding.
Talent acquisition is at a record high
80 percent of startups say they’re on the search for fresh recruits, this is the highest reported percentage since 2013. But these founders again expressed the difficulty of findings suitable candidates in this recruiting process.
There is a rise in founding members who are immigrants
Over half of the startups surveyed reported having at least one immigrant among their founding team. Further, it was found that the recent increase in US regulation had led to many founders moving their operations outside the US. The country’s stringent immigration policy has been a great burden for many nascent startups who are eager to harness overseas talent.
- Industry insider on how technology can transform shipping services
- New cybersecurity report issues calls to action for CISOs
- Facebook makes augmented reality accessible to SMEs
- British Airways announces in-flight virtual reality entertainment trial
- Is artificial intelligence too powerful for small businesses?