We’ve been writing a lot about the tech talent crunch in Seattle, noting companies such as Tableau Software, ExtraHop Networks and Avalara that are looking to secure top-notch developers amid an increasingly competitive environment. A new report out today confirms some of that anecdotal evidence. Eighty three percent of startup companies say they plan to boost hiring this year, up from 73 percent which responded that way last year, according to Silicon Valley Bank’s Startup Outlook Survey.
With the increases in hiring, startup executives also are feeling more bullish about business. Two thirds of the 375 respondents said business conditions are better than they were last year, and 75 percent expect things to get even better in the coming 12 months.
The biggest challenge facing startup companies remains equity financing, with 39 percent of respondents citing it as a hurdle.
However, more than a quarter also cited the difficulties in obtaining key technical talent, one of the reasons why companies in the Seattle area have resorted to PR stunts and elaborate parties to get the attention of developers.
The study notes:
Overall, respondents paint a positive picture about their business performance during 2010 and their prospects going forward. Their responses reinforce the view that the United States economy is indeed recovering, in a real way — not just statistically. A majority of executives (roughly two-thirds) report that they either met or exceeded 2010 revenue targets, while roughly one in four indicate they exceeded 2010 revenue targets — both up significantly from last year’s survey. Respondents also say that business conditions today are better than they were last year.
Full report here.
