Study Cites Decline in New Software Startups Since 2009
The rate at which new companies have started up in the last five years is significantly lower in North America than it was in the past, according to Evans Data.Although the tech economy is currently booming, the number of software startups has declined over the last five years or so, according to a study by Evans Data. The rate at which new companies have started up in the last five years is significantly lower in North America than it was in the past, according to Evans Data's Developer Population and Demographics study. Evans Data based its study on population models and the results of its semi-annual Global Development Survey, which showed that in North America there are 328,000 developers working at companies less than 2 years old. There are 369,000 developers working at companies that are 2 to 5 years old, and 1,416,000 at companies that were started 5 to 10 years ago. The total of those working at companies that were started since 2009 is 49 percent lower than those at companies started in the 5 years before 2009. "We're obviously still seeing the effects of the great recession that started in 2008," Janel Garvin, CEO of Evans Data, said in a statement. "It's much less visible due to the excitement and growth around Silicon Valley, and the release of new technologies that capture everyone's imagination, but the reality is in the numbers. The recovery has been very weak in real terms, and this shows in the large decrease in new software companies during the last five years."
The Spring 2015 Global Development and Demographic Study is the 20th edition of the series, which was started in 2006 and is published twice yearly. It estimates total worldwide developer populations and projects population data by region and country five years into the future. Population estimates are overlaid with data from Evans Data's biannual Global Development survey to provide population estimates on a variety of development topics, such as mobile development, development for the Internet of things (IoT), cloud, big data and other technical adoption trends, plus developer demographics by region and segment.