27 INTERNATIONAL TECH HUB | BDO LLP
THE GOVERNMENT SUPPORT The general perception of Silicon Valley, and the US market in general, is that there are fairly significant regulatory burdens. US corporate governance infrastructure, expectations and rules are tighter than in many other regions, but these factors support the confidence in the US capital markets and public companies. There’s a need for accountability and transparency. Still, US- based and listed companies enjoy a valuation premium, as well as a very competitive corporate tax rate. THE INVESTOR ANGLE There’s no shortage of available capital. A decade ago, venture capital firms would look at setting up a hundred million dollar fund - now that sum is much larger. Influx of Private Equity into Tech sector has significantly enhanced the availability of capital. Despite this ample funding, the market is highly competitive and always has been. Companies that manage to overcome initial investor scrutiny are able to attract adequate growth capital from both venture capital and private equity firms. Investors are looking for ROI, meaning that even companies with a solid business model, great growth prospects and innovative technology need to really articulate their value proposition. Another appeal for investors is the standard setting body and the Securities and Exchange Commission offering a great deal of transparency. These organisations really look out for investors’ interests, and make sure the investing community has clarity about the types of businesses they support.
SAN FRANCISCO HAS STAR TECH BUSINESS PULLING POWER
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