The Startup Genome used data collected by users of its Startup Compass tool, launched last year, which helps tech companies take a data-based approach to avoiding failure by scaling prematurely. Fifty qualitative interviews were also conducted for the report, which was compiled in association with UC Berkeley, Stanford and Telefónica Digital.
Unsurprisingly, Silicon Valley tops the list, with Israel’s hotbed of innovation, Tel Aviv in second place. Factors considered for the top 20 ranking included startup output; funding; company performance; talent; support infrastructure; entrepreneurial mindset; trendsetting tendencies, and ecosystem differentiation from Silicon Valley. Looking beyond the US, the UK, Canada, France, Australia, Brazil, Russia, Germany, Singapore, India and Chile are all represented in the top 20.
Los Angeles and Seattle take surprise third and fourth place. While either city isn’t short of startups, they’re rarely discussed in the same breath as number five in the list, New York City. LA’s stronger support infrastructure and Seattle’s startup output helped them beat NYC’s talent-rich ecosystem.
Silicon Valley’s influence on some of the cities on the list is strong. 33% of founders in Singapore, and 35% in Waterloo, Canada, have lived in the Valley previously. In Berlin, on the other hand, that figure is just 4%.
While Silicon Valley is still winning in terms of available risk capital in the early stages, where startups are still finding their product-market fit (the report says that even New York City and London have 70% less risk capital available), what the report shows is that it’s possible to build a healthy ecosystem anywhere in the world.
The full startup ecosystem report goes into greater depth about the rise of startup ecosystems around the world. You can download it to read more for yourself. The full ranking is below. Click the image to view a bigger version.
Image credit: Getty Images