lswcapSilicon Valley Venture Capital First Round has conducted a survey of startup founders and employees, evaluating 2019 and releasing data that will help us understand what will happen in 2020. The results of a survey of 905 surveys are as follows.
Founders’ concerns over the startup bubble peaked in four years. In 2019, two-thirds of founders evaluated that they fell into a bubble. This is an increase of 25% compared to 2017 and 12% compared to 2018.
Respondents predicted that investment attraction would become more difficult in 2020. In the 2018 survey, they were optimistic about the year to come. Only about 44% thought that it would be difficult to attract investment, and 46% said that investment companies were in a higher position in attracting investment. This year’s respondents gave a darker outlook. 65% of founders expected it to be difficult to attract investment in 2020, and 70% thought that the balance of power would be with investors in attracting investment.
It is expected that gender inequality in recruitment and investment attraction will become even more severe. Forty percent of female workers say their gender is more unfavorable for establishing or having opportunities in senior positions in the tech sector. In addition, 70% of female entrepreneurs felt that gender was unfavorable for attracting investment.
80% of founders believe that team diversity has a positive effect on the value of a startup. Those with leadership who did not prioritize diversity were three times more likely to leave the company the following year.
50% of founders don’t trust Glassdoor’s reviews, but employees do. According to the survey, only 53% of founders believe the review is correct, but 80% of employees feel the company review is genuine.
Compensation doesn’t affect employees as much as you might think. Only one out of 10 employees said that cash or equity was the reason for the job, and only one out of 20 founders said that the equity was important to the applicant, but the equity payment was important. Employees are more valued on their ability to influence (55%), problem they are trying to solve (42%), mission (40%), team (39%), and culture (30%).
Founders are negative about Remote Work, but employees are not. Only 15% of founders saw that remote work improves team efficiency. On the other hand, employees said more than three times that working from home improves productivity. Sometimes founders working remotely were six times more likely to understand an employee’s remote work.
If you are a CEO, you have no choice but to be under pressure. Research shows that if employees lose faith in their representatives, they have three times less confidence that the company will be able to exit more than $100 million, five times more likely to leave the company within a year and six times less likely to not exercise equity options. The idea that the company will be ruined by culture or team is doubled.
Mental health is important. However, there is a difference as to who approaches it. When asked what kind of experts they regularly meet when they ask the founder, the female founder said that they met with a therapist or psychiatrist three times more than a male founder (42% vs 15%). A similar pattern was seen in founders under 40 years of age. .
Community becomes important. 80% of directors founders said that the user community is important to their business. 28% view the community as a moat.
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