Startup Ecosystem Report Shows a Changing World (In 2 Graphs)

July 28, 2015

8:00 am

startup ecosystem report

There’s a new startup ecosystem report demonstrating global rankings, with the top 3 spots all from America (Silicon Valley, LA, and New York). Tech company benchmarking firm, Compass Startup Genome, updated their 2012 list that ranks the areas of the world on how well they foster top tech talent, profitable businesses, and expand into foreign markets.

According to the report, Silicon Valley is pretty much the benchmark upon which the rest of the world compares itself. The Valley captured nearly half (47%) of startup company exists (acquisition, IPO) revenue in 2013 & 2014. London came in a distant second with 10% and LA is struggling to be noticed at 6%.

The good news for the tech industry is that the pie overall is growing at an impressive pace all over the globe.

“Silicon Valley is growing at a 45% rate over the last two years, whereas many other ecosystems further down the index are growing at much faster pace. London has quadrupled in the same timeframe, and Berlin has grown 20 times (due primarily to the two big IPOs of Rocket Internet and Zalando)”, concludes the report.

So, how do the startups compare on important metrics to Silicon Valley?

In the chart below, the Bay Area’s total GDP of tech companies is half-a-trillion dollars ($535B) compared to the North American Average of ($430B). The Valley has between 14–19 thousand active startups (!!) compared to the American metro average of 4K.

startup ecosystem report

The Bay Area also has to pay a lot more per employee, averaging around $118K/year compared to $91k for the North American average. But The Bay Area has nearly twice the national average of founders who already have experience in fast-growing startups (35% vs. 17%).

That said, if ambitious tech folks don’t want to run the gauntlet in Silicon Valley, there are plenty of other fast growing areas in the world. Considering all factors (like talent pool and number of successful startups) Austin, the home of the tech conference mecca, SXSW, is new to the list and ranks 14th worldwide.

In other countries, Berlin jumped 6 spots from 2012, ranking number 9 in 2015. Amsterdam and Montreal bring additional international flair, coming in at 19 and 20th, respectively.

Readers can view the full report here.

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The Ferenstein Wire is a syndicated news service. For inquires, email the editor at greg at greg ferenstein dot com Syndicated News. Data-Driven. ADHD Friendly.

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