(March. 29 2016, Beijing)Silicon Valley Bank(SVB) and its joint venture bank–SPD Silicon Valley Bank (SSVB)releasedChina Startup Outlook 2016today, the first market outlook that is focusing on the health of the nation’s innovation economy. The findings are based on SVB’s annual survey of technology and healthcare startup executives. This is the first time that SVB expanded the annual survey, which was completed in late 2015, to include technology and life science executives in China. The survey asked entrepreneurs for their views on business conditions, access to capital and talent and policy issues that impact their success.

“China is an important part of the global innovation economy, so we are pleased to be able to survey startup founders and executives here as part of our multi-national Startup Outlook report,” saidDave Jones, President of SVB Asia and SSVB.

“Most Chinese startups we surveyedare optimisticabout business conditions in theyear ahead, despite market volatility. They are seeking venture capital to prime growth and set their long-term goal on anIPO. They are also navigating challenges similar to those of startups around the world,such asdifficulty in raising funds, finding the right talent, and managing cybersecurity issues.”

Highlights from theChina survey follow and are based on 140 responses from primarily private technology companies with fewer than 100 employees and less than RMB six million in annual revenue:

Business Conditions

• 85% of Chinese startups said they expect 2016 to be better than 2015

Fundraising

• 81% said the fundraising environment is extremely or somewhat challenging
• 38% of Chinese startups expect their next source of funding to come from venture capital.
• 48% said venture capital was their largest source of funding in 2015
• 62% said their long-term exit strategy is an IPO, while 5% plan to be acquired%则希望被收购
• 39% of Chinese companies prefer a mainland China market for an IPO
• 90% believe there will be as many or more acquisitions this year over last year

Talent

• 20% of startups said recruiting is their biggest challenge
• 98% said it’s challenging to find workers with the skills necessary to grow their business
• 48% are hiring for product development skills

Women in Tech Leadership

• 79% of startups have women in leadership roles

Policy and Regulation

• 47% said cybersecurity regulation is the most important policy issue
• 45% said corporate tax is the most important issue affecting their companies
• 35% saidtax credits/lower taxes is what the government can do to help them
• 53% said laws and regulations have affected their decision to move non-sales jobs and operations out of China
• 37% said easier access to overseas capital is the most critical policy forexpanding to free trade zones, followed by 34% that said favorable tax and tariff policies is the most critical

For additional survey data and the full report of China, please visit:China Startup Outlook 2016.

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For more than 30 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators.
Learn more at www.svb.com

About SPD Silicon Valley Bank

SPD Silicon Valley Bank (SSVB) is the joint venture of Silicon Valley Bank, the California bank subsidiary and commercial banking operation of SVB Financial Group(Nasdaq: SIVB), and Shanghai Pudong Development Bank (SSE: 600000).It is the first Sino-U.S. joint venture bank and technology bank helping China‘s innovative companies and their investors move bold ideas forward, fast. Headquarted in Shanghai, SSVB is committed to build the “Innovation Ecosystem” in China. We are redefining the banking experience for innovation companies of all sizes and aim to become the most sought-after bank for China’s innovation area.Learn more at www.spd-svbank.com

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