Silicon Valley, New York, Tel Aviv: Here's the World's Start-up Hubs
BY Matthew Wong
A new report reveals that Silicon Valley outpaces all other start-up ecosystems but cities around the world are catching up.
Silicon Valley still dominates all other innovation hubs, but cities around the world including Tel Aviv, Los Angeles and New York are catching up--building their own successful start-up ecosystems, according to a new report released Tuesday.
Using data compiled and analyzed by the Startup Genome, a collaborative R&D project founded in 2011, the 125-page report ranks the top 20 start-up ecosystems across eight different indexes including start-up output, funding, performance, talent, support, mindset, trendsetting, and differentiation from Silicon Valley.
As the report indicates, entrepreneurship is not only growing, but also growing globally in diverse start-up hubs that didn't exist several years ago.
Below are a few of the study’s highlights:
1. Silicon Valley ranks first across all eight indexes. Among Silicon Valley’s biggest advantage is funding in which a range of funding sources including angels, venture capitalists and incubators have allowed area start-ups to raise a third more capital on average than those in other cities, according to the report.
2. Tel Aviv ranks second on the list of start-up ecosystems, maintaining the second highest start-up output index of the twenty cities on the list and a funding index tied for first with Silicon Valley. Also of note: 27% of the user base of Tel Aviv are reportedly paying customers, which is 46% more than Silicon Valley users.
3. Los Angeles has overtaken both New York and Boston as a start-up hub, ranking third, and has plenty of room to grow: the city has 70% less start-ups than Silicon Valley and 27% fewer “mentors” than Silicon Valley, the report finds.
4. New York is the global capital for women tech entrepreneurs, according to the report. 18% of the city’s tech start-up founders are reportedly female.
5. While Boston seems to be shrinking in size as a start-up hub, the report states that the city “can be considered a series alternative to Silicon Valley.” Among Boston’s key start-up traits from the report: founders tend to be more educated than Silicon Valley entrepreneurs (50% hold Master's or PhD degrees vs. 42% in Silicon Valley) and are 24% more likely to monetize their start-ups compared to their Valley counterparts.