According to a global Startup Ecosystem Report published by Silicon Valley-based startup benchmarking firm Compass, Bangalore is among the Top 15 startup ecosystems around the world. However, Delhi failed to be part of this list.
Silicon Valley, New York City, Los Angeles, Boston & Tel Aviv topped the rankings. Also, it is to be noted that the index does not include startup ecosystems from China, Taiwan, Japan, and South Korea.
The research was done on five major components i.e. Performance, Funding, Talent, Market Reach, and Startup Experience.
Bangalore ranked 6 in access to funding, number 10 in the valuation & number of startups, but lags behind in talent and market reach.
The startup ecosystems which made the biggest leaps are New York, Austin, Bangalore, Singapore, and Chicago. Bangalore moved from #19 to #15, Singapore from #17 to #10, Berlin from #15 to #9, and Chicago from #10 to #7.
Key Findings of the report
- 37% of all funding rounds in the top 20 ecosystems have at least one investor from another ecosystem. Adding on, 27% of all funding rounds have at least one investor from abroad. (North America 20%, Europe 38%, Asia-Pacific 29%)
- The number of foreign employees within a startup is 29% on average for the top 20 ecosystems (Silicon Valley 45%)
- Total exit growth across the top 20 ecosystems rose 78% annually from 2012 to 2014 (40% IPOs/60% Acquisitions).
- Total venture capital investment across the top 20 ecosystems rose 95% from 2013 to 2014.
- The ecosystems with the most growth in VC investments were Berlin (12x), Bangalore (4x), Boston (3.7x), Amsterdam (2x), and Seattle (2x). Meanwhile, Silicon Valley almost doubled up with 93% growth from 2013 to 2014, with indications from Crunchbase that almost all of the increase in Silicon Valley funding was in late stage Series B and Series C+ capital rather than early stage capital, which was relatively stagnant.
- The startup ecosystems with the fastest annual growth in the number of seed rounds over the last two years were Bangalore (53%), Sydney 33%), and Austin (30%).
Access complete report here.