New Guide for Greater Seattle Technology Entrepreneurs - Report Highlights Ecosystem of Local Invest
A very high percentage of tech startups fail to survive. Identifying the right investors and professionals, and involving them at the right time is critical. The 2016 Seattle Technology Ecosystem Study provides a roadmap to navigate success in the Greater Seattle region’s innovation economy, and expands on the original 2015 Study. Here are some of the major findings:
1. The Puget Sound technology ecosystem remains strong. Deal volume, quarter over quarter, however, was down, reflecting a national trend that is viewed as a temporary downturn.
2. Investors and advisors acknowledge that obtaining funding may be more difficult in the Puget Sound region than in Silicon Valley and the rest of the Bay Area; however, there is disagreement as to why this gap exists. Some feel there are not enough organized seed and growth investment funds in Puget Sound making it more difficult and time-consuming to raise capital. Others feel that there are not enough proven entrepreneurs starting companies with game-changing ideas. Still others believe there is a cultural or lifestyle factor hindering more entrepreneurs from reinvesting their time and leadership into new companies after they have had an initial success.
3. A number of super angels in the community are now associated with or have joined investment groups. In some cases this has changed their investment habits to co-invest in the portfolio companies of their firms.
4. Healthcare investment has a very different ecosystem of investors and advisors than traditional Information and Communications Technology areas because of the greater capital requirements and longer pathways to commercialization. As a result, there are fewer active private investors than in the general tech market.
5. Overall, investors and advisors believe that the future for the Puget Sound technology ecosystem is bright and that the Puget Sound region is rapidly maturing with more resourses available to entrepreneurs.