Techstars Second Annual State of Innovation Survey Reveals 76% of Founders Are Optimistic for their Startup in 2024
June 25 2024 - 8:00AM
Business Wire
The survey is based on responses from 1,550
entrepreneurs and venture capital investors within Techstars’
global network
Techstars, a pre-seed investor, released its second annual State
of Innovation Survey today. The survey finds that despite
persisting headwinds in private markets and a lack of confidence in
the return of tech M&A and IPOs anytime soon, founders are
still overwhelmingly optimistic about their startup’s prospects
this year.
“It doesn’t come as a surprise to anyone that founders
everywhere are feeling optimistic even when headlines are flashing
red. The fact is, entrepreneurs are going to follow their dreams
and change the world regardless of their environment,” said
David Cohen, Founder and CEO of Techstars. “Still, the
reality of today’s tighter VC market means that supporting
entrepreneurs who have a burning desire to tackle the defining
issues of our time - from climate change to human longevity and
beyond - with capital, mentorship, and connections, is more
important than ever to help them succeed.”
Based on an analysis of responses from 1,550 entrepreneurs and
investors from across the globe, the State of Innovation Survey
dives into how respondents view innovation in their sector, startup
communities, and around the world.
Key Findings
The following outlines the key insights from the survey,
demonstrating the trends that are shaping the early-stage
innovation ecosystem:
State of the Market
- Entrepreneurs and VCs agree that tech M&A or IPOs are
unlikely to make a big return this year. Only 40% of respondents
indicated they are “very confident” or “extremely confident” that
M&A will recover this year. Only 17% believe that the IPOs will
return in earnest this year.
- By and large, entrepreneurs are no longer striving for a public
debut. Only 15% of founders say their primary long-term goal for
their startup is to go public, while 34% say their goal is to be
acquired, and 30% would opt to remain private.
Entrepreneur Life
- 31% of founders work at least 60 hours per week with 17% of
those working 70 hours or more.
- Founders tend to be serial entrepreneurs. 79% of current
entrepreneurs have worked for other startups in the past. 45% have
worked for multiple startups (two to four) previously.
Innovation Drivers
- There are no standout drivers of innovation today, underscoring
that it takes an ecosystem for innovation to thrive. Respondents'
answers were spread nearly evenly across “VC and Angel Investors”
(22%), “Accelerator Programs” (19%), and “Community and Proximity
to Other Startups” (18%).
Most Innovative Sectors
- AI might be the megatrend of the moment but the majority (60%)
of founders surveyed are not building an AI solution. However, 33%
are using AI as an enabler of their business. 41% say AI is a
direct component of their business.
Innovation Hubs
- Almost half (48%) of entrepreneurs and VCs believe Silicon
Valley will still be the world’s most innovative hub five years
from now, followed by Singapore (31%), Tel Aviv (27%) and New York
City (25%).
- 29% of respondents believe that the U.S. will lead in startup
formation compared to other regions globally. Notably, nearly three
times as many respondents predict that Africa will produce the most
startups this year compared to Western Europe.
For additional survey results, including a closer look at the
mental health impact of entrepreneurship and a breakdown of
innovation by sector, please visit:
https://accelerate.techstars.com/state-of-innovation-2024
About Techstars
Techstars invests in early-stage startups led by unstoppable
entrepreneurs with transformative businesses. With 45+ accelerators
worldwide, an unrivaled network of alumni, mentors, commercial
partners, investors, and dedicated operating teams, Techstars
supports entrepreneurs throughout their entire startup journey
while helping to build thriving startup communities. Since 2006, we
have invested in more than 4,400 portfolio companies, accelerating
the growth of businesses including Chainalysis, Zipline, DataRobot,
Alloy and many, many more. www.techstars.com
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version on businesswire.com: https://www.businesswire.com/news/home/20240625832750/en/
Amalia Lytle amalia.lytle@techstars.com