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.