If you are just getting started:
- Hire your first designer early. Ideally someone who can work cross-functionally across product and marketing. Companies that have gone on to grow all did.
The Future of Design in Startups
|
2016 Survey Results
The Future of Design in Start-Ups
2016
SURVEY RESULTS
Everyone talks about the importance of design in start-ups. Yet there is very little data available about the role design plays, and no roadmap for how to integrate design into a company.
More than 400 companies responded to our request for help understanding their perceptions, practices and predictions. Here are the results
What were we hoping to learn?
VALUE OF DESIGN
What is the perceived value of design in a start-up?
TEAM STRUCTURE
How do companies structure their design teams?
BUSINESS IMPACT
Does design have a tangible impact on a start-up’s success?
HIRING
What are the trends in hiring designers, freelancers and agencies?
Who participated?
408 Companies
302 VENTURE FUNDED CO’S
106 AGENCIES + INDEPENDENT CO’S
106 AGENCIES + INDEPENDENT CO’S
CONSUMER VS. ENTERPRISE
Consumer
Enterprise
Both
SIZE - # OF EMPLOYEES
0-10
11-20
21-50
51-150
151-500
500+
LOCATION
Bay Area
NY
Rest of US
Europe
Rest of World
FUNDING
No Funding
<$1m
$1-3m
$3-5m
$5-20m
$20-50m
>$50m
Survey Results
Everyone agrees that design matters
87% of start-ups believe that design is important, if not very important
85% of start-ups have founders or C-level executives weigh in on design decisions.
31% of start-ups have a designer founder.
More Mature = More Design
Upon analysis, while the vast majority of respondents claimed they are design-centric, we found that there were a subset of our respondents have achieved a level of success measured by a sizable, dedicated design team and venture capital funding. We labeled these companies “Design-Mature” and everyone else “Design-Centric.”
47
Design-Mature
- Companies that said design is “very important” to their business
- Have a designer as a co-founder or at least 20 designers on staff
- Raised more than $20M in venture capital funding
Design-Centric
- Companies that said design is “important” or “very important” to their business.
302
Impact to Business
Across all key questions, the more mature companies reported greater impact of design.
61%
87%
Design leads to:
higher sales
67%
83%
Design leads to:
higher customer retention
44%
60%
Design leads to:
higher consumer engagement
45%
60%
Design leads to:
faster product cycles
Design-Centric
Design-Mature
“
A company that is design-centric prioritizes the user experience and celebrates new ideas. This company isn't okay with leaving well enough alone, but always seeks improvement. They proactively cultivate creative thinking and they know that behind every number is a person. They're constantly looking for ways to make that end-to-end experience (across every touchpoint) better for their customers.
”
Katie Dill - Airbnb / Head of Experience Design
Team Building
For the most part, everyone believed cross-functional design was key. Additionally, as companies mature, they shift to ‘pods’ or ‘squads’.
73%
87%
Believe that Design Integration Across Multiple Areas is Important
32%
53%
Have a Cross-Functional 'Pod' or 'Squad' Structure
Design-Centric
Design-Mature
Hiring Wars
Almost all design-centric companies reported that they plan to grow their design teams by at least 50% in 2017. Competition for talent will continue.
73%
93%
Plan to increase designer headcount over the next 12 months
Product Designer
Brand Designer
UX Designer
UI Designer
Design Director
What positions are in highest demand?
Design-Centric
Design-Mature
External Spending
It’s clear that design services are an industry now; one that will continue to continue to mature as companies employ a combination of in-house and external talent to meet their design needs.
$100k
$200k
$25k
$50k
Almost all Design-Centric companies plan to double agency or freelancer spend over the next 12 months.
Design-Centric
Design-Mature
What does being design-centric mean to you?
“
Designers play a key role in strategic decisions.
Not all decisions are based solely on quantitative data.
Customer experiences are valued.
”
Brad Hargreaves - Founder & CEO / Common and Co-Founder / General Assembly
To Consider:
Design is now firmly ingrained as a vital component of company building—cross-functionally, at the highest levels, and at the earliest stages. And it’s far more than pretty pixels.
If you are CEO:
- Be involved in design decisions and support design as a key pillar of the company.
- Hire in a ‘design leader’ who can help you scale your team, hire, and nurture a design culture.
If you are Design Leader:
- As you grow, keep an eye on evolving team structure. Companies move to a “squads or pods” structure as they get larger. Know when to make the shift.
Collaborators
A big thank you to all of the collaborators on this project. Many of them are leaders in creating value through design and all of them are committed to seeing design pave the way for more impactful and delightful products:
About NEA
We believe that design as a discipline is an essential ingredient in creating successful products and companies, and we are committed to nurturing design-centric companies and supporting the design leaders working with and building start-ups.
NEA is one of the world’s largest venture capital firms. We invest in technology and healthcare innovation at any stage, with a broad portfolio spanning consumer, enterprise, life sciences, med tech, education, and a great deal in between.
Survey Directors
Albert Lee
Design Partner
Albert helps build design-centric companies. Previously he was the Director of IDEO New York.
@tweetalbert
@tweetalbert
Dayna Grayson
Partner
Dayna has been investing in design-centric companies for 10 years. She was a product designer in her past life
@daynagrayson
@daynagrayson
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© 2016 New Enterprise Associates