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Silicon Valley is the role model
for many cities around the world
A report by Startup Genome*

24 November 2012: While Silicon Valley is still the world’s number one location for start-ups, a number of cities around the world have successfully emulated the Californian region in San Francisco’s Bay area. According to a report by Startup Genome there are now 20 cities worldwide, which offer budding entrepreneurs with the right ecosystems to turn new ideas into commercial success stories. With nine cities in the top 20, North America still dominates the list, but the report’s authors already rank Tel Aviv second and also include London, Paris, Moscow and Berlin as well as cities in South America, Asia and Australia.

The world’s top cities for start-ups

Rank	Cities / regions	Startup Genome's assessment
1	Silicon Valley USA	Silicon Valley is by far the biggest, most important and influential startup ecosystem to which all other ecosystems look up to. Silicon Valley's total output of startups sets the baseline to which all other ecosystems are compared. Although a staggering number of startup ecosystems have been established around the world, Silicon Valley remains top of list in all dimensions.
2	Tel Aviv Israel	In the Startup Ecosystem Index, Tel Aviv ranks second globally, because it has the second highest output index of startups with a healthy funnel of startups across the developmental lifecycle, a highly developed funding ecosystem, a strong entrepreneurial culture, a vibrant support ecosystem and a plentiful supply of talent. Yet although we gave it the ranking of Expansion: Sustaining, they are some warning signs that they may enter the ossification stage of expansion sometime soon. Technology startups tackle two kinds of risk: technology risk and market risk. And the Tel Aviv ecosystem is highly dependent on small technology-driven exits, rather than on big market winners.
3	Los Angeles USA	Los Angeles has long been overshadowed by Silicon Valley in terms of high-growth technology startups. The domination of Los Angeles by Hollywood and associated industries has also made it difficult for startups to shine. However the LA startup ecosystem is gaining increasing momentum and now ranks third globally. Although the ecosystem has 70% less startups than Silicon Valley, it has a healthy funnel of startups moving through the startup lifecycle. There is a healthy opportunity for LA to establish itself as an alternative to Silicon Valley.
4	Seattle USA
5	New York City USA	New York City has established itself as a serious alternative to Silicon Valley for startups in the consumer space and those focusing on e-commerce, advertising, media and fashion. However, it has long way to go to truly catch up with Silicon Valley, with about the half number of startups as Silicon Valley.
6	Boston USA	Boston has lost its position as frontrunner on the east coast to NYC. Although it has a well-established angel and venture capital scene, Boston creates 79% fewer startups than Silicon Valley. The Boston startup ecosystem is significantly smaller than Silicon Valley but it has a healthy funnel of startups throughout the Startup Lifecycle. It can be considered a serious alternative to Silicon Valley.
7	London UK	For the last 50 years the technology startup scene has been dominated by Silicon Valley, Boston and Tel Aviv. In recent years London has burst onto the scene and has become the most successful Startup Ecosystem in Europe, producing the largest output of startups in the European Union by far. But its output is still 63% lower than Silicon Valley. London looks to be well positioned for continued growth as the leading Startup Ecosystem in Europe, and first choice for fast growing US startups to establish their European headquarters.
8	Toronto Canada	Toronto is the largest startup ecosystem in Canada and is one of the largest startup ecosystems globally even though it creates 85% less startups than Silicon Valley. It has a healthy funnel of startups across the stages of the Startup Lifecycle. Toronto competes for startups with regional competitors such as NYC, Boston and nearby Waterloo.
9	Vancouver Canada	Vancouver is the second largest startup ecosystem in Canada. Globally it ranks number 9 even though it creates 85% fewer startups than Silicon Valley. Vancouver has a healthy funnel of startups across the Startup Lifecycle. Seattle is a strong regional competitor for talent.
10	Chicago USA
11	Paris France	Despite being the world's most popular magnet for tourists, Paris is not yet much of a magnet for out of town entrepreneurs. One of the most important factors in creating a thriving entrepreneurial scene and self-sustainable startup ecosystem is the ability to attract talent from abroad. Paris has a long way to go in this area to be able to compete with London and Berlin as the top Startup Ecosystem in Europe. Paris is ranked 9th globally, in large part because of its healthy distribution of startups across the first 4 stages of the Startup Lifecycle.
12	Sydney Australia	Although Sydney is Australia's largest startup ecosystem, with a healthy funnel of startups distributed throughout the startup lifecycle and healthy diversity of targeted customers and markets, it has not reached a position where it influences markets and societies outside Australia.
13	Sao Paulo Brazil	São Paulo is by far the largest startup ecosystem in Brazil. However compared to Silicon Valley, it has created 80% less startups. The São Paulo ecosystem has a healthy distribution of startups throughout the startup lifecycle stages. The hub ranks 13 globally.
14	Moscow Russia	Although copying established Western internet business models and localizing them for the domestic market has driven growth, the Moscow startup ecosystem now needs to step up its efforts to build globally viable companies. Moscow is ranked 14 and has produced 89% less startups than Silicon Valley. The ecosystem does not have a healthy distribution of startups across all 4 developmental stages or a healthy mix of different types of end customers. Moscow's volume of young, yet fairly experienced entrepreneurs, overall pool of talent, its affinity for new technologies and quick adoption of new business models stands out.
15	Berlin Germany	Since its reunification in 1990, Berlin has re-established itself as a thriving cultural centre. It is now being hyped as the new startup hotspot in Europe. Berlin feels like a startup itself, constantly changing and driving forward. To become self-sufficient, Berlin needs to take certain steps to better support entrepreneurs to build global startups. If you look at where New York was a couple of years ago, you can see a parallel to where Berlin is now. Berlin is ranked 15 and is creating 88% fewer startups than Silicon Valley. However, the ecosystem generally shows a healthy distribution of startups across the Startup Lifecycle.
16	Waterloo Canada	Waterloo has developed an emerging startup ecosystem with strong ties to Toronto. It is Canada's third largest startup ecosystem, ranking 16th globally. It has produced 88% fewer startups than Silicon Valley. In the near future, it will be interesting to see whether Waterloo is able to hold on to its talent base or whether it will be sucked into Toronto.
17	Singapore Singapore	Singapore has the potential to become the central startup ecosystem of Asia, knitting together the huge markets of China, India, Indonesia, and Malaysia. Its unique geographical position at the heart of Asia provides a fertile environment for entrepreneurs to start, grow and scale their businesses not only in Asia, but globally. Singapore is ranked 17th globally.
18	Melbourne Australia	Melbourne is the second largest startup ecosystem in Australia and is currently being hyped. It globally ranks 18th even though it has created 89% fewer startups than Silicon Valley. Sydney is a regional competitors for attracting talent. Melbourne needs to grow and establish a unique independent identity or else it will become Sydney's little brother and simply provide talent for the nation's largest ecosystem.
19	Bangalore India	India could well be one of the toughest countries in the world for a startup to flourish. Although it is one of the world's fastest growing economies. Being one of the biggest markets on earth provides a foundation for a prospering startup scene. Another important factor is the richness of India's talent base. Well- educated and highly skilled, Indian web entrepreneurs have the ability to transform both their economy and society. Bangalore needs to take certain steps to enable entrepreneurs to build global startups and attract talent and capital from abroad.
20	Santiago Chile	Santiago is an example of how policy makers can help to kick start a startup ecosystem. It demonstrates to other hubs and their political decision makers that it is possible to nurture, sustain and foster an entrepreneurial mind set. To become self- sufficient, Santiago needs to build startups by attracting talent and capital from abroad. Santiago is ranked 20th and has produced 92% fewer startups than Silicon Valley. The ecosystem generally does not have a healthy distribution of startups across the Startup Lifecycle, with few late stage startups.

The report by Startup Genome also names 20 runner-up cities.
From North America:
Atlanta, USA; Austin, USA; Dallas, USA; Denver, USA; Mexico City, Mexico; Montreal, Canada; Philadelphia, USA; Portland, USA; San Diego, USA; Washington, USA.
From South America:
Buenos Aires, Argentina; Rio de Janeiro, Brazil
From Europe:
Amsterdam, Netherlands; Barcelona, Spain; Cepenhagen, Denmark; Dublin, Ireland; Helsinki, Finland; Madrid, Spain; Milan, Italy; Warsaw, Poland; Zurich, Switzerland.
From Asia:
Istanbul, Turkey; Mumbai, India.
From Africa:
Cape Town, South Africa; Johannesburg, South Africa.

*The study Startup Ecosystem Report 2012 can be downloaded from here:
http://www.startupgenome.com

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Silicon Valley is the role model for many cities around the world A report by Startup Genome*

Silicon Valley is the role model
for many cities around the world
A report by Startup Genome*