Startup Genome is a collaborative R&D project created by three young entrepreneurs, Bjoern Herrmann, Max Marmer, and Ertan Dogrultan, who set out to take a comprehensive, data-driven look into what makes startups successful.
The team has compiled data on more than 50,000 startups around the world and conducted more than 50 in-depth, qualitative interviews with entrepreneurs and investors.
At the top of the rankings sits Silicon Valley, which remains the center of entrepreneurship and was used as a baseline from which to compare the rest of the list. Coming in second is Tel Aviv, followed by Los Angeles, Seattle, New York City and Boston, before crossing the Atlantic to London — which ranked as the largest ecosystem in Europe. While five of the top startup ecosystems in the world are in the U.S., the rest of the world is catching up.
Noticeably absent from the list are Asian startup ecosystems, which Hermann said is a result of the fact that although the project had collected data on 50,000 companies, it did not have enough data on Asian regions to compare them properly.
Here is a recap of the top 10:
- Silicon Valley
- Tel Aviv
- Los Angeles
- New York City
Techcrunch highlighted some key points. Take note of (4) Sydney and (10) Melbourne
- Even developed ecosystems such as New York and London have more than 70 percent less risk capital available than Silicon Valley for Startups in the early, ”PreProduct Market Fit” Stages of the Startup Lifecycle.
- Silicon Valley has left its imprint on global startup ecosystems all over the world through fluid immigration and emigration patterns. Berlin and Sao Paulo have the fewest number of founders that have lived in Silicon Valley previously, with 4 percent and 7 percent respectively, whereas Singapore and Waterloo have the most founders that have lived in Silicon Valley with 33 percent and 35 percent, respectively.
- Sydney, Sao Paulo and Moscow are the startup ecosystems that are the most differentiated from Silicon Valley in terms of the types of startups being developed.
- Sydney is the global capital of data-driven startups.
- The cultural prominence of France’s private education system has strongly influenced the mentality of the Parisian population, with more than 96 percent of founders in the ecosystem completing at least a masters degree or a PhD before starting a company.
- Even though Singapore has a relatively strong funding environment, the risk tolerance of the founders there is the lowest among the top 20 startup ecosystems.
- Melbourne is an up-and-coming startup ecosystem that ranks high in terms of adopting new trends within the startup world, but one of its biggest pain points is that local companies limit their potential by targeting very small niche markets.
Here are the finished analysis on Sydney and Melbourne