Seattle VCs remain upbeat |
Register here for our next TechFlash Live networking event, March 23, featuring an expert panel discussing the future of online advertising.
Seattle VCs remain upbeat
Flickr photo via Stage88
Despite the severe downturn in the economy, venture capitalists are turning slightly more optimistic. That's the key finding of the Washington Technology Industry Association's quarterly Venture Capital Outlook Survey. The VCs are predicting decreases in layoffs as well as better revenue growth for portfolio companies.
Forty-four percent of those surveyed said that they expect moderately better revenue growth in the second quarter, which compares to just 22 percent who responded that way last quarter. Meanwhile, 71 percent of respondents said they plan to make one or two new investments this quarter, up from 56 percent who felt that way in the first quarter.
Only 10 percent of those surveyed said they expect their companies to cut staff by 10 percent or more during this quarter, down significantly from 44 percent in the first quarter.
The survey results echo statements made last week by Seattle venture capitalists Lucinda Stewart, Andy Dale and Greg Gottesman, who indicated that things -- while still tough -- might be turning around. OVP's Stewart -- citing the uptick in venture investments in the state during the first quarter -- said there are a few "glimmers" of hope.
"We are still hunkered down, but at least it feels like a bottom," said Dale, a partner at Buerk Dale Victor.
However, it is not a completely rosy outlook. VCs don't think any IPOs will be completed in the second quarter. And only 14 percent of respondents think one of their companies will be acquired, down from 33 percent who felt that way last quarter. Meanwhile, deal valuations are still low. Seventy-one percent of respondents said that they expect "moderately or "substantially" lower deal valuations.
About John Cook
John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
READ FULL BIOGRAPHYRecent Sponsor Posts
Seattle University Software Engineering
Chinwe Okeke (MSE’08) pursued her graduate degree while working as a developer and technical analyst for the Boeing Company. She picked the SU-MSE program for small class sizes and real world learning opportunities offered through the academic service-learning and capstone projects.
The MSE program at Seattle University is geared for working professionals with classes offered in the evenings. The program builds upon the computing experience of its students and offers courses in a variety of technical and management areas of software engineering, with an emphasis on teamwork and a disciplined approach to problem solving.
Marchex is one of Seattle’s largest ad technology companies with 300+ employees providing call and click based performance marketing products, and managing over $100m in ad budget for tens of thousands of advertisers. Our customers range from local businesses to the Fortune 500.
Our talented and creative product engineering group is hiring.
If you are an innovative software design engineer interested in solving difficult problems at scale, across a wide array of technologies from Lucene to Hadoop to Asterisk and SIP then we’d love to hear from you!
Apply now.
Technology Tax Planning – Did You Take The Deduction?
Technology companies require professional advisors who can assist in all aspects of the business. The BDO Technology Practice provides a full range of services tailored to help address the changing needs of domestic and international companies. In addition to core audit and tax services, BDO professionals can assist technology companies with:
· Revenue recognition
· Business combination accounting
· R&D tax credits
· Compensation and benefits
· Business valuations
Backed by 38 national offices and an international network in 110 countries, we have the domestic and global footprint to serve growing technology companies. Contact sphilpott@bdo.com (audit partner), mreeves@bdo.com (audit partner), psmith@bdo.com (tax partner), tzambito@bdovaluation.us.com (valuation), tfiscus@bdo.com, Director, 206.624.2020
Job Listings
- Software Development Engineer - Display Advertising
- Business Services Company
- Director Enterprise Architecture - IT
- Starbucks Coffee Company
- Senior Program Manager - External - 713665
- Microsoft Corporation
- Quality Improvement Specialist
- HCR ManorCare
- Senior Software Development Engineer - eXtreme Computing Group - 708427
- Microsoft Corporation
