Startup Genome released today the first ecosystems report: “The Startup Revolution: The Global Rise of Startup Ecosystems And How They Compare”.
Startup creation and capital formation are becoming more and more a science rather than an art: the report measures and compares different innovation ecosystems on a global basis. Data is based on a correlational analysis of more than 50,000 startups around the world that have used the Startup Genome’s product, (Startup Compass, a performance tracking platform). In the creation of the report Startup Genome collaborated with Berkley, Stanford (Prof. Steve Blank, teaching at Stanford, Berkeley and Columbia) and Telefonica.
Which cities have the highest percentage of high growth technology startups? What makes an ecosystem successfull and which variables are key in this context? What actions should be taken in order to make a specific ecosystem competitive?
Bjoern Lasse Herrmann, CEO of the Startup Genome explains “We created this report for three reasons: to put a spotlight on the emerging high tech startup ecosystems that will be responsible for powering a majority of the world’s economic growth in the future, to further democratize the knowledge needed to create a successful startup and a successful startup ecosystem, and to provide actionable recommendations to all stakeholders”
The 10 most active startup ecosystems are:
1. Silicon Valley
2. Tel Aviv
3. Los Angeles
5. New York City
We are experiencing the fast transition from the Industrial to the Information age. Apple is the biggest company today and technology entrepreneurship is a primary growth engine of the data Economy. Falling costs for tech entrepreneurship are creating startups all around the world and dozens of startup ecosystems are emerging.
Tel Avis is the second most active startup ecosystem after the Silicon Valley. Los Angeles, Seattle, New York, Boston and Chicago are the top locations in the US. While Toronto and Vancouver stand out in the top ten. Best European locations are London (7th and only European city to make the top ten chart), Paris (11th), Moscow (14th) and Berlin (15th). The Ecosystem Report has not only identified most active startup cities, but provides also a set of recommendations for how entrepreneurs, investors and corporate development departments can best leverage the global entrepreneurship landscape and how policy makers can create a Startup Ecosystem in their local region to participate in the globalized 21st century economy.
The ranking is built on a combination of 50 different variables combined within 8 indexes (Startup Output, Funding, Company Performance, Talent, Support Infrastructure, Entrepreneurial Mindset, Trendsetting Tendencies & Ecosystem Differentiation from Silicon Valley).
Startup Genome is a Silicon Valley based startup that spun off (like often happens) a research project from Stanford University. Its founders Bjoern Lasse Herrmann (CEO), Max Marmer (Chief Scientific Officer) and Ertan Dogrultan a data mining guru, met in University while developing the scientific basis of their project.
In the past years Startup Genome released several essays and reports, which have been adopted in Universities, incubators and accellerators around the world. Bjorn and his friends want to crack the DNA of startup success and accelerate the pace of innovation around the world by making entrepreneurship more of a data driven activity. They are building a platform that enables startups to measure their core metrics and most fundamental activities (business metrics, product traction, use of cash performance and several others). Metrics are tracked and benchmark against startups within peer groups.
Steve Blank, said: “The democratisation of entrepreneurship from Silicon Valley and from Startup Ecosystems all over the world is creating new strategies and structures for innovation and disruption. The strategy lessons that we learn from these startups will light the way for a massive restructuring of all corporate organisations in the next 40 year.”
– Startup Compass (Startup benchmarking & recommendation tool)
– Investor Compass (Investor portfolio tracking tool)