Raising capital is a continued challenge for those working in the tech sector, Silicon Valley Bank’s sixth annual Innovation Economy Outlook study has found.
“Whilst more than half of UK respondents were able to raise private capital in 2014, the majority say that it is a challenge – this is a sign that quality control is working. It is clear that we’re seeing the maturation of the innovation economy both globally and in localised markets, such as the UK.”
said Phil Cox, head of EMEA and president of the UK branch for Silicon Valley Bank.
The report found that, despite the buzz, crowdfunding is still “quite rare” with the majority of companies raising capital from individual investors.
Some 44% of companies globally raised money from venture capital firms, with 27% getting funding from angel investors, 15% taking on bank debt, 11% raising funds from private equity and another 11% getting cash from corporate venture firms. 6% last year received government money, while 3% raised crowdfunding.
This year’s survey included responses from more than 1,000 execs worldwide from sectors including software, hardware, cleantech, life science and healthcare startups.
97% of execs surveyed in the UK say they expect 2015 to be better for business than 2014, with 79% planning to grow their teams.
“Our research has revealed continued optimism and momentum among both startup and long-term players in the global innovation economy, and this trend is increasingly evident in the UK,”
Cox said.