SVB released their 8th annual Startup Outlook report this week. Findings include tech startups seeing a bright future, as a growing number of businesses seek to replace older systems with innovative digital products and services. But increased competition and uncertainty around Donald Trump’s policies are expected to temper that optimism in the year ahead
Startups are “clearly feeling” that the “bar has been raised to acquire growth capital for their companies,” the report said. As much as 51% of startups said their next source of funding was likely to be venture capital, up from 42% in 2016. By contrast less than 10% expect to tap private equity or angel investors, or simply try to grow their ventures organically. Just over half of the startups that responded to the survey said they were profitable, of which 18% said they had more than $25 million in revenue. Most of the startups are based in the U.S., followed by the U.K. and China.