Socal Startups Speak Up About The Challenges They Re Facing In 2017

Here’s what the startups between San Luis Obispo and San Diego are facing this year.

54 Percent Think 2017 Will Be Better Than Last Year

54 percent of respondents think this year will improve on the last, while 40 percent think it’ll stay the same. Just six percent took the pessimistic approach, proving that startup optimism is still strong, despite the uncertainty that the report covers, noting that: 73 percent of SoCal startups expect to continue hiring.

SoCal Fundraising Is Tougher Than Average

Nearly 37 percent of SoCal startups say that their fundraising experiences are best described as “extremely challenging.” This is a noticeable bump when compared to the average response of “extremely challenging” across all U.S. startups polled, which was just 23 percent. What’s to blame? Likely the lack of VCs in the SoCal area, if the methods of fundraising are any indicator: Startups in the area plan to rely more on corporate venture than do the rest of U.S. startups in general.

SoCal Startups Expect Acquisition, Not IPOs

Here’s perhaps the most interesting metric to be gleaned from the report. SoCal startups, possibly learning from their fundraising challenges, are looking towards buyouts rather than the classic startup success story of becoming a public company. Again, from the report: While the Silicon Valley bubble may be a stone’s throw away, SoCal startups have a different set of experiences and expectations. Read more about startups here on Tech.Co