Tech Startups Seek Mentorship and Counsel as They Grow Their Businesses
The Startup Barometer examines how startup companies are growing and what they need most from their strategic partners and investors. In its initial study, the
"Our findings show that, in addition to financing, tech startups need practical advice to help them grow and evolve their concepts," said
Most Tech Startups Planning for Full-Time Hires
Among the tech startup owners surveyed, nearly half (44.4 percent) report that they are in the Series B stage of funding, meaning that they are in the midst of scaling the business, building awareness and gaining traction with users. When asked about hiring plans, the vast majority (85.4 percent) reported that they plan to hire new talent in the next six months. Of those startups planning to hire, 77.5 percent will hire full-time employees, 48.8 percent will hire part-time employees, and roughly one third will hire contractors and interns.
As tech startup owners grow their businesses, they must determine the type of relationship they will establish with investors – whether it is an institutional investor who provides only financial support or a strategic or corporate investor that adds value to a company through a combination of funding and additional resources such as market knowledge, experience, and industry contacts. The Startup Barometer Survey found that three in ten (29.1 percent) tech startups surveyed currently work with corporate investors, while 37.1 percent partner with strategic investors who are not from large corporations.
When asked about their expectations of investors, most tech startup owners reported that they expect commercial relationships (69.5 percent) and connections (61.6 percent) to a broader network of industry and subject-matter experts. Beyond relationships, tech startups also expect industry expertise (47.7 percent) and guidance and mentorship (42.4 percent). In return for these resources, the survey found that the most common benefits provided to strategic investors include performance-based financial benefits (70 percent), board representation (49 percent) and decision-making power, particularly in regards to acquisitions (47 percent).
"There is no single formula for how we engage with fintech startups," said Shergill. "Before we invest in a company, we look at the opportunity and say 'What could be?' We look at the concept, the culture, the team and the value proposition of the companies we're considering for our portfolio and focus our efforts on finding companies where we truly believe our team – and
What Tech Startups Need Most
The Startup Barometer Survey found that one in five (20.6 percent) tech startups surveyed does not yet have a fully defined business plan or economic model for their company. When it comes to time management, nearly half of tech startup owners (49 percent) report that – in addition to developing their company's product or service – the majority of their time is dedicated to day-to-day business operations such as HR and accounting.
"We work closely with businesses to ensure that they are also paying attention to day-to-day business operations and finding the right talent to help them bring their products to market," said Shergill. "Mastering some core execution fundamentals can mean the difference between success and failure for a tech startup."
Tech Startups Prioritize Security in Payment Technologies
The payment technology landscape is continually changing, requiring entrepreneurs at every stage to make important decisions about how their company will send and receive payments to and from customers. While the majority (58.9 percent) of tech startups believe traditional credit and debit cards will continue to dominate, four in ten (41.1 percent) also believe other payment devices, including Near Field Communication (33.1 percent) and Chip technology (37.1 percent), will continue to be significant players in the payments space.
The survey asked tech startups to weigh in on what they believe is the most important feature of a payment provider and found the following results:
- Security (44.4 percent)
- Ability to accept multiple forms of payment (25.8 percent)
- Brand and trust (15.9 percent)
- Connectivity to existing platforms (9.9 percent)
"The pace of innovation in the fintech space is incredibly exciting, and it affects businesses of every industry and size," said Capital One Growth Ventures Venture Partner Lauren Connolley. "The evolution of payment technologies and particularly the growing focus on mobile technologies is a perfect example. The increasing desire for convenience and 'seamlessness' among customers, along with the growing need for privacy and data security creates a really interesting friction that is spurring exciting new payment technologies."
The findings reported in this release are from a survey conducted by the opinion research firm,
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tech-startups-seek-mentorship-and-counsel-as-they-grow-their-businesses-300165923.html
Tatiana Stead, 703.720.2352, firstname.lastname@example.org