The Silicon Valley has been world’s biggest hub for start-up businesses for the past couple decades and continues to be the world’s leading startup destination. Is that all about to change? With 2018 already coming into its last stretch and tax reform already in effect, let’s take a glance at the outlook for Silicon Valley startups in 2018.
China’s venture scene is growing at a rapid rate, taking up two spots in the top four largest tech hubs in the world. Despite this extreme growth, the Silicon Valley continues to dominate the hitech world. For the period beginning January 2012 and ending May 2018, Silicon Valley startups nearly doubled the amount of dollars by startups raised in the second largest hub, Beijing. Moreover, according to CB Insights, more than 12,000 funding deals on 7,000 unique startups were done in the Silicon Valley during the time period, more than all non-U.S. tech hubs combined. Further cementing its importance in the tech world, the Silicon Valley turns out unicorn companies and Private IPO’s, or funding rounds of $100 million plus, at an extremely higher rate than any competitor. While other hubs in the world are improving rapidly, the outlook for new companies in the Silicon Valley has never been better. It still provides the best opportunities for new businesses to grow and succeed.
Furthermore, things are continually getting better for US companies. According to a report by the Silicon Valley Bank, 61% of US startups believed that their business conditions will be better in 2018 than the year before, up four points from 57% the previous year. Not only that, but raising capital has gotten easier also. In 2017, 69 percent of startups surveyed by SVB successfully raised capital. 24% of these startups stated that the current fundraising environment is not challenging, a significant increase from the previous year, when only 12 percent said that it was not challenging to fundraise.
Silicon Valley is still by far the world’s most preeminent startup and tech hub, and conditions only seem to be getting better for startups. With the new tax laws coming into play, improving businesses conditions, and easier access to new funding, there are optimal conditions to grow your new business. By letting Silicon Valley Hitech Accounting focus on the things we do best, like payroll or tax return services, you can turn your full attention to making your startup the best it could possibly be.