|
Newsletters
|
|
|
|
|
Wireless Developer Network - Daily News
Visit the WirelessDevNet Symbian DevZone
Today's News |
Yesterday's News |
Submit News |
News-"wireless" Top Stories! |
Around-The-Web
| Wireless DevZones!
Survivors: Bay Area Technology Based Companies
URL(s): www.barta.org
OAKLAND, Calif., Mar 28, 2002 - After the expansionist years of the late 1990s and 2000 when corporations, angel
investors and Venture Capitalists poured money into start-up companies in Northern California, 2001 was a difficult year for emerging
businesses in terms of capital acquisition and morale.
To gauge patterns emerging in small businesses in the San Francisco Bay Area
counties, the Bay Area Regional Technology Alliance (BARTA) surveyed its client companies and other companies in its database via the
Internet. The answers they provided do not make up a scientifically designed survey instrument, and the results should not be interpreted as
such. However, the final results provide an illustration of issues affecting emerging Bay Area high-tech companies.
Bay Area emerging companies in the BARTA client base are normally small, so the survey asked first for company size: single employee,
2-5 employees, 5-10 employees, 10-25 employees or 25+ employees. The majority of respondents were in the 5-10 or 10-25 employee
range.
The survey next asked "Type of business," listing as potential answers "Consultant, Alternative Energy, Data Storage, Manufacturing,
Premium Power, Software, Service Provider, Aviation/Instrumentation, Environmental, Medicine/Medical Devises, Plastic Recycling,
Wireless Communication, Biotechnology, Flat Panel Display, Membrane Technology, Semiconductor/Microelectronics." Respondents
ranged across those sectors and also identified Transportation Systems, Industrial Security Inspection Equipment, and Financial Advisory as
other business types.
Answers to "How long have you been in business" listed 1-4 years, 5-8 years, and more than 8 years. The replies were equal for 1-4/5-8
and more than 8 years. No company responding was "less than one year" in age.
The companies were asked about "Capitalization" in 2001. Reply categories included "Own funds/family funds, Early money, 1st Stage, 2nd
Stage, Corporate and Government Contract/Grants." Respondents were almost evenly split between "Own funds/family funds" and
"Government Contract/Grants" as their main source of funding in 2001. The national trend in 2001 for Angels and VC's not to fund
companies beyond their existing portfolios seemed true for many Bay Area companies as well.
In terms of "Annual Sales," firms could answer "No sales yet, Expecting Sales in next 3 months, Expecting Sales in next 6 months,
Expecting sales by the end of the year (2002), Maybe Next year, Established Company with ongoing clients." Many respondents had No
Sales Yet, but almost as many were expecting sales during the upcoming two quarters as they are established businesses with sales ranging
from $500k - $8 Million.
Asked to rank the "Status Quo," the respondents were evenly split between "Have enough money to last through 2002, but will need funds
or orders for next year," and "Doing ok (making payroll, paying taxes, slight profits)." A few were "Hanging in there, but barely," and some
were "Profitable."
Next, the survey asked, "In the last few months, have you approached funders?" All were seeking funds and had looked within the past 30
days, the past three months, and within the last 6 months. Most answered, "I'm always looking for funding."
Regarding their expectations for 2002, respondents could answer "After last year, this year has to be better, Should be similar to last year,
Not expecting any change until the 3rd quarter (2002), Not expecting any change until 2003, and In my businesses things are looking up."
For many small businesses, things are looking up, but almost as many are not expecting much change until later this year or until 2003.
Respondents were asked which service providers were most beneficial during the past 12 months. Listed were "Legal Advice, Marketing
advice, Help with my business plan, Financial advice, Intellectual Property Advice (regarding patents/licenses), Sales advice, Mentoring,
Outside consulting, Help with taxes." Financial Advice tied with Intellectual Property advice as the help most requested, though answers
ranged across the services listed.
Companies were asked, "When you seek advice, how do you find it?" Answers could be "Word of mouth, Friends, Professional
Associations, Yellow Pages, or Business Associates." Survey respondents almost uniformly listed "Business Associates" as their chief
source of business advice. A few listed "Friends," or the "Internet."
Finally, the emerging companies surveyed were asked, "Knowing what you know now, would you develop another high-tech, start-up?"
Most replied "Of course," with "Maybe" and "Too Soon to Tell," tied for second place. Only one respondent answered "Never."
BARTA supports technology-based business growth in the Bay Area. Established with funding from the California Technology, Trade and
Commerce Agency, BARTA provides consulting and access to capital for emerging, high-tech companies. For more information about
BARTA programs, go online to http://www.barta.org.
|
|
|
|
