June 15, 2022
Since 2012, Startup Genome, a policy research and consulting organization for public and private organizations committed to accelerating the success of their startup ecosystem, has published its annual report. A dense and detailed document on the state of the present forces and their evolution. Here are the 3 highlights.
The Startup Genome Global Startup Ecosystem Report 2022 (GSER) was officially released on June 14 during London Tech Week. GSER is the world’s most comprehensive data-driven study of startups, with analysis of more than 280 business innovation ecosystems and 3 million startups. The report includes: a ranking of the top 140 ecosystems, insights by continent, as well as founder-centric articles written by leading experts.
So what to remember this year?
1. An expanding ecosystem
1.65 trillion dollars in funding, 1,227 unicorns (a company valued at over a billion dollars), 70% of the new value created in the last ten years based on digital economic models… a thriving industry. According to Statista, for the first time in 2023, more than half of global GDP will come from “digitally transformed” businesses.
Especially since the pandemic, with the acceleration of online usage, has only amplified this discrepancy, as illustrated in the diagram below:
Startups have also raised a lot more money in recent years. Since 2012, the global average of Series A rounds has tripled to more than $18 million. Valuations have risen an average of 239% over 10 years, with the strongest growth in recent rounds.
2. India is growing, China is slowing down and ecosystems are becoming more diverse
Geographically, Startup Genome points to the very rapid growth of India, a country that had 44 unicorns in 2021.
India has a large domestic market that has become even more dependent on technology. But the country’s rise is not just a local phenomenon. In a post on Medium, Dev Khare, a partner at Lightspeed India, estimates that 30% of the country’s unicorns are already or about to be globalized,” he says.
The remark is less enthusiastic for its massive Asian neighbor.
In 2021, Beijing cracked down on companies like Didi, Tencent and Meituan over issues such as anti-competitive practices and data privacy. Jack Ma (founder of Alibaba) retired almost invisible after the regulators’ actions against Alibaba,” the report added.
Finally, note that there is only Silicon Valley and the rest of the world. A record 540 companies achieved unicorn status in 2021, and 113 ecosystems produced at least one steamroller with more than $1 billion in valuation. Twenty-two ecosystems – including Brisbane, Luxembourg, Santiago-Valparaiso and Ho Chi Minh City – have just created their first unicorns.
3. The best global ecosystems in 2022 are…
… basically the same as in 2021 and 2020! Namely Silicon Valley, New York, along with London, Boston and then Beijing.
Notable increases include Seoul, for the first time in the top 10, as well as Helsinki (Finland) and Indian cities such as Delhi and Bangalore.
North America accounts for nearly half of the top innovation ecosystems, while Asia and Europe are side by side.
Montreal ranks 36th this year, far behind Toronto-Waterloo (17th) or even Vancouver (30th). Among the qualities of its ecosystem, the report points to quality of life, qualified and accessible talent and government support.
Montreal’s startup ecosystem – like the other regions of Quebec – today demonstrates a strong dynamic of innovation, a high level of performance and attractiveness for both entrepreneurs and investors. Access to quality capital, talent and support from leading private and public actors working together allows our ecosystem to stand out globally in a number of cutting-edge industries,” comments Guillaume Caudron, CEO of Réseau Capital, Quebec’s VC & PE association.