These are the world's top startup ecosystems
From Silicon Valley to Tel Aviv, venture capitalists and innovators are driving growth in these major global centers.
Where you launch your startup is no longer a choice between the garage or the basement, but whether it's city A or city B. Over the last decade, as startup culture has come to both define and contribute to urban centers around the globe, ecosystems dedicated to nurturing and expanding these nascent businesses have blossomed. And thanks to a new report, we now know the hotspots attracting entrepreneurs and investors hoping to bring to life the next Facebook or Google.
This information comes to us courtesy of data benchmarking giant Compass, which measured the performance, funding, talent, market reach and startup experience of the world's top 20 startup ecosystems. The top five included U.S. hotspots Silicon Valley, New York City, Los Angeles and Boston, and Tel Aviv in Israel.
A new ranking of the world's top startup ecosystems featured Tel Aviv as the only non-U.S. city in the Top 5. (Photo: Compass)
Silicon Valley, home to thousands of tech companies, isn't a surprise. And New York City's ascent is certainly welcome news for the Big Apple. Of the top five, Tel Aviv has the greatest growth index, a reflection of the tremendous innovation currently coming out of the city. Over the last several years, big names like Microsoft and Apple, as well as support from international venture capitalists, have transformed the city on the Mediterranean into a leading startup incubator.
"Tel Aviv is a rapidly growing cosmopolitan city that serves not only as the true business capital of Israel, but also is a melting pot of people who have either relocated there or are visiting from all around the world,” said Israeli tech industry veteran Arie Offner, head of strategic partnerships at Glide, an instant video messaging platform. “As a result, the Israeli startup culture that is centered in Tel Aviv, and has now expanded to Jerusalem, has always been sensitive to the issue of communication between different cultures and people.”
Compass adds that in total, venture capital investment in the top 20 startup ecosystems rose 95% from 2013 to 2014. It's a staggering shift, and an impressive era of growth that the firm expects is just beginning to show its true potential.
"The era is in full bloom now, and there has never been a better time to be a tech entrepreneur," the report states, "as entrepreneurs are now blessed with the tools, resources and market conditions to scale a company to billion dollar 'Unicorn' status faster than ever before."
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