Do you wonder which cities around the world have the strongest startup ecosystems?
To talk about startup ecosystems, let’s start with a short definition of its core: startup. I guess, everybody approximately knows what a startup is, but is it enough? The term startup was coined in the 1970s to describe small companies with huge potential to grow. However, a startup is not only a company with a rousing growth capacity but also the source of a unique idea, or a new way of doing something well-known or common. The development of a startup requires a community, a network, and other startups to support each other and create a nurturing environment, in other words, an effective startup ecosystem. No matter how unique their ideas or how successful they are, the startups are interdependent to have the optimum habitat.
The Top 5 Global Startup Ecosystems
According to Startup Genome, the top five global startup ecosystems are Silicon Valley, New York, London, Beijing, and Boston, respectively. Silicon Valley has been the most famous and profitable option to invest in for a long time. However, the rise of real estate prices started causing newcomers and potential entrepreneurs to think that Silicon Valley is overrated.
About New York City’s startup ecosystem, the executive director of Tech:NYC stated that even under the effects of the COVID-19 pandemic, it maintained its optimistic culture thanks to the ambition and confidence of its entrepreneurs.
London is the only one in these 5 top startup ecosystems providing a startup visa, and Beijing’s highlights are the support it receives from the government and being called home by big companies like Lenovo, Baidu, and Sina Corp.
Boston has been home to various startups from different areas such as robotics, life science, cleantech, etc.
What About the Rest of the List?
The list of top-notch startup ecosystems goes on, but some of them are the true prominent ones:
- Stockholm is ranked #10 on Startup Genome’s list. It has been the ultimate place to find successful brands without trying so hard. Wherever you look, a famous Swedish brand catches your eye. Now, it is providing a supportive environment to startups such as Amuse, Einride, Kry, and Noomi. They are looking forward to getting as big as Spotify, soon.
- Paris is ranked 13th on the list, and it has got the world’s largest digital business incubator with 1000 startups according to Paris School of Business. In 2019, the director of the popular startup campus, Station F, told that the Parisian startup ecosystem isn’t as international as its rivals but they are working on it. The number of English-speaking companies has been rising every other day. Besides, some other worldwide-known companies like Deezer and BlaBlaCar are the residents of the Parisian startup ecosystem.
- Berlin always finds a way to show its uniqueness. This city carries the rank #16 with pride because it is nearly impossible to not see a startup in that city. Berlin is literally alive and full of opportunities for startup enthusiasts. This city was ranked by Nestpick as the best city in the world for Millenials with its business ecosystem, openness, and recreation. N26, Sound Cloud, and Get Your Guide are some of the foremost startups of Berlin.
Read my previous post about Venture Capitals if you have not done so already: