Startups are certainly about the idea, but they are also about location. Where you launch your startup can make all the difference in how quickly your business progresses and how successful and straightforward financing is. We take a look at Startup Genome's latest report on the world's best ecosystem for startups, and find out where the expat entrepreneur should be looking next.
North America
Silicon Valley tops the tables, and is generally miles ahead of competition from the likes of New York City and London. In terms of resource attraction, New York is a distant second compared to Silicon Valley, which attracts a significant amount of entrepreneurs and startups (with almost all other cities struggling with the latter). Silicon Valley boasts the highest valuation of startups and exits, is the most connected ecosystem in the global startup scene and has the highest quality talent. The 'talent' measurement was based on quality of talent, accessibility of talent and, finally, the cost of talent. Due to the cost of employing some of the brightest minds, it dropped to second place; there are certainly cheaper places with bright sparks ready to work on the next big tech innovation.
Elsewhere in the US, Chicago dropped eleven places overall to eighteenth due to low global connectedness. The age old university town of Boston dropped only one place due to the entry of new Asian competitors. Like Silicon Valley, it was also on the pricer end of things when it came to the cost of talent, however its long standing position as an innovation hub meant it fared well on the startup experience metric.
Vancouver and Toronto ensured Canada continues to hold a place in the minds of international entrepreneurs in sixteenth and seventeenth place, respectively. Vancouver saw itself rise by three places and Toronto up by one, with both scoring relatively highly in terms of market reach.
Asia Pacific
Beijing and Shanghai are both new entrants to the ranking, in third and eighth place, respectively. This cements China's position as an economic powerhouse not just in terms of established industries, but as a nurturing environment for innovation. In contrast to some US counterparts, the Chinese cities offer high quality talent and some of the lowest level of costs. The cities also ranked just behind Silicon Valley and New York City when it came to access to funding — no doubt in part thanks to funding and incentives by the Chinese government.
Though Singapore is down two places due to the Chinese entrants, it takes the top spot for talent from Silicon Valley, thanks to accessible, good quality and affordable talent. The small state has recently updated its policy on startups in order to encourage more entrepreneurs to innovate within its borders.
Bangalore is the only Indian city to make it into the top 20, taking the final spot. Like China, India has seen its economy grow substantially in recent years, so it is unsurprising that this includes development in the technology sector. However, it has sunk five places since the last report, suggesting that there is still work to be done to make it a truly competitive startup hub.
Europe
Europe has several real contenders when it comes to the startup arena. London continues to lead the way, coming in just behind Silicon Valley and New York City. Like New York, it is a global force financially, resulting in a good availability of capital. Despite Brexit, it appears that, for the moment, there has been no let up in the pace or support for emerging companies in the city.
Berlin is slowly gaining a reputation as a startup capital to rival London, and it has jumped up two places to seventh this year. The city scores highly when it comes to performance and talent, and doesn't do all that badly in terms of accessible funding. Its global reach also helps propel it above some of the other well-known startup centres.
Stockholm is a new entrant that is noted for its impressive market reach, though it has yet to establish a system that encourages good quality funding. However, Sweden is well-known for its good quality of life, making it appealing for expat entrepreneurs who don't want to sacrifice the good life while they work on the next big app.
With Stockholm's entry and Amsterdam and Paris holding position, Europe certainly has a lot to offer startups, and it seems more European countries are coming into the fray.
Middle East
Israel has a famed entrepreneurial, innovative culture and has churned out a number of well-known hi-tech companies. Tel Aviv has slipped one place to sixth as a result of Beijing's entry, however it remains one of the world's tech capitals, particularly when it comes to security and biotech.
