Analyses made Easy
Silicon Valley Bank's 2020 Startup Outlook Report*
Executives and founders of startups in the US, the UK, China, and Canada have a generally positive mood, according to Silicon Valley Bank's survey. Despite trade tensions and global health concerns, over two-thirds of respondents see business conditions improving in the coming year (see graph). This is slightly above the figures which emerged in the two previous years. 79% plan on hiring.
Still, 42% of the respondents find that raising funds has gotten harder, due to investors becoming more selective. Just 12% reported their funding efforts were becoming easier. In 2019, 11% of respondents were unable to secure new funding, with 56% succeeding within six months. 42% of respondents found fresh capital via VC firms in 2019 (see graph).
36% anticipate venture capital providing their next rounds of funding, while 12% don't plan on raising more funds. 10% will seek capital from a corporate investor. Being acquired is the anticipated exit for around 60% of respondents from the US, the UK, and Canada, while only 14% of Chinese companies expect to take this route. Instead, 46% of Chinese survey participants aim to enter public markets (see graph).
29% noted consumer privacy and cybersecurity, respectively, as one of the three public policy issues most important to them. Half of the respondents listed access to immigrant talent. Just over half of all startups in the US, the UK, and Canada have at least one foreign-born founder (see graph).
45% of startups report that hiring has become harder, while 64% are looking to boost their product development teams. Of the respondents, 43% have at least one female C-suite executive, and 42% have an executive who is racially diverse. Still, while 43% say that they have company-wide promotion and hiring goals, only 26% have programs geared specifically for leadership roles. Of those who do, 58% listed a flexible work environment as part of their program, while 45% support diversity-focused organization (see graph).
*All figures and graphics are taken directly from the report itself.
Today's Funding 💸
- Expert System (Modena, Italy), AI-based marketing platform: $29.4M from undisclosed sources.
- Crossbeam (Philadelphia, PA), partnership data integration automation platform: $25M B led by Redpoint Ventures, participation from FirstMark Capital, Salesforce Ventures, Slack Fund, and Uncork Capital, Okta Ventures, Partnership Leaders.
- Taysha Gene Therapies (Dallas, TX), monogenic CNS disease eradication platform: $95M B led by Fidelity, participation from BlackRock, GV, Invus, Casdin Capital, Franklin Templeton, Octagon Capital, Perceptive Advisors LLC, Sands Capital, ArrowMark Partners, Venrock Healthcare Capital Partners.
- Ginger (San Francisco, CA), on-demand mental healthcare provider: $50M D led by Advance Venture Partners, Bessemer Venture Partners, participation from Cigna Ventures, Jeff Weiner, et al.
- Infermedica (Wrocław, Poland), AI platform for health insurance, telemedicine, and health systems: $10M A led by EBRD, Heal Capital, participation from Karma Ventures, Inovo Venture Partners, Dreamit Ventures.
- Dapper Lands (Vancouver, Canada), consumer-focused Flow blockchain for collectibles: $12M from Andreessen Horowitz, Union Square Ventures, Coinbase Ventures, Distributed Global, Valor Capital Group, A.Capital, BlockTower Capital, Blockchange Ventures, EONXI Ventures, Reed Company, Greenfield One, North Island Ventures, Republic Labs, L1 Digital AG, Pirata Capital, et al.
- Mode Analytics (San Francisco, CA), cloud-based analytics: $33M D led by H.I.G. Growth Partners, participation from Valor Equity Partners, Foundation Capital, REV Venture Partners, Switch Ventures.
- StreetLight Data (San Francisco, CA), big data analytics platform: $15M D from Macquarie Capital, Activate Capital, Osage University Partners, Ajax Investment Strategies.
- Approve.com (Tel Aviv, Israel), procurement operations platform: $5M Seed led by Aleph.
- HyperCube Technologies (Arlington, VA), copy/paste platform for cloud networks: $2.5M Seed led by Leawood Venture Capital.
- Special (Bozeman, MT), non-donation/advertisement monetization platform for video creators: $2.26M Seed from Next Frontier Capital, et al.
- Orum (New York, NY), money transfer platform for financial institutions: $2.5M led by Homebrew, Acrew, Bain, Clocktower, Box Group.
- Epic Games (Cary, NC), game studio: $1.78B from Sony Corporation, Baillie Gifford, BlackRock, Fidelity, Lightspeed Venture Partners, Ontario Teachers' Pension Plan Board, funds and accounts advised by T. Rowe Price Associates, David Tepper, KKR, Smash Ventures. The company received a $17.3B valuation.
- Big Run Studios (Oakland, CA), casual mobile game studio: $5.25M Seed from Transcend Fund.
- Infinite Fleet (Hong Kong), MMO strategy game: $3.1M from Charlie Lee, Adam Back, Max Keiser.
- Verikai (San Francisco, CA), alternative data-based insurance provider: $6M A led by ManchesterStory, participation from ValueStream Ventures, Plug N Play.
- Auticon (Berlin, Germany), social employer for adults living with autism: $2.95M from Ferst Capital Partners, et al.