Seattle startup founders talk about financing rounds more often than they get them.
Just because Seattle startups talk about funding more than nearly anyone else, it doesn’t mean the city’s companies are rolling in the dough.
That’s what one study about startup chatter suggests. The study, conducted by Seattle social analytics startup Earlybirdy, analyzed Twitter conversations about entrepreneurs and startups in six startup-heavy cities in the U.S. The research sought to find out what matters to the city’s innovative residents and compare perception to the realities of the industry.
In Seattle’s case, it turns out the startup community may talk about financing at a higher rate than it receives money. The city ranked No. 1 among its peers at talking the most about funding.
Seattle beat out even San Francisco. The broader area of Silicon Valley is known for leading the list of funding for technology companies.
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Seattle consistently ranks lower on that list. Washington state companies brought in more than $1.2 billion of funding in 2014, an impressive statistic in recent years. But Silicon Valley alone brought in $23.4 billion in venture capital deals during 2014.
EarlyBirdy Chief Operating Officer Brent Eyler cautioned that the results look only at Twitter conversations, not in-person discussions.
“The conversations that are happening are usually totally uncorrelated from the empirical data,” he said. But Eyler agrees — Seattle startup founders talk about funding a lot, especially at the early stages of launching a business.
Rebecca Lovell, the city of Seattle’s startup liaison, has noticed the pattern as well. Nearly every startup that comes to visit her for advice brings up financing.
“Navigating the financing landscape is one of the top three topics, team issues and go-to-market strategy are the other two,” she said.
It seems every city talks about funding a lot. Earlybirdy reports that one in about seven conversations about startups and tech involves financing.
Seattle’s disconnect between chatter and reality might not last for long.
Seattle’s funding activity is looking up. Washington state businesses received $299 million in the first quarter of this year, the best quarter since 2007, according to the MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association.