This year’s Global Startup Ecosystem Report has unveiled a growing number of startup trends that are predicted to spill over into the upcoming years. The Global Startup Ecosystem Report (GSER) is an annual research report that analyses data from over 3 million companies across 280 ecosystems. It is provided by Startup Genome, an innovation policy advisory and research firm, that develops action plans for more than 45 governments worldwide. This year the report was launched at London Tech Week by Startup Genome’s founder and CEO – Jf Gauthier and has revealed useful insights into the startup sector’s trends. At Allied Legal, our startup experts have highlighted these key insights for you.
Changes to Startup Ecosystem’s Ranking
The same five ecosystems have remained relatively unchanged in their top-ranking positions from 2020 and 2021, though Beijing has dropped one place, with Boston now ranked at #4. Silicon Valley is still ranked #1, followed by New York City and London tied for #2, Boston is now ranked #4 and Beijing at #5. Some major startup ecosystem hubs including Seoul, Detroit, Oslo, and Helsinki have risen substantially in their ranking with Seoul entering the top 10 for the first time. Overall, North America continues to lead global rankings with nearly 50% of the top 30 ecosystems. Asia has slotted in second with 30%.
Tech is Continuing to Rise
Since the pandemic tech companies have grown 2.3 times more than non-tech businesses. In the Oceanic region, sub-sectors like fintech remain prevalent, making up around 30% of total venture capitalist funding. This is good news for the innovation sector with tech predicted to play a major role in fighting climate change.
How Did Melbourne Fair?
Victoria’s startup sector is on the rise, with over 2,600 startups and counting, owing to significant government investments, Victoria’s educational institutions, and programs such as those launched by LaunchVic and La Trobe University. In fact, Victoria’s startup sector is now the same size as the state’s tourism sector with development across a variety of sub-sectors like Life Sciences, SaaS, artificial intelligence, advanced manufacturing, blockchain, big data, and fintech. Early-stage funding has also increased massively over the last few years, with the development of new unicorns like Airwallex and Culture Amp.
How About Sydney?
Sydney still holds rank for the region’s leading ecosystem, with a #20 spot in the global rankings and a $67 billion startup ecosystem value, largely owing to Canva’s massive valuation. The startup ecosystem is seeing large investment deals, with Iris Energy and v2food raising substantial capital over several funding rounds. In 2021, early-stage investment company – The Fund, announced an Australian expansion and will invest in approximately 40 startups in the upcoming years. Sydney is thriving when it comes to fintech and cleantech. Of over 800 Australian fintech startups, around 60% are in Sydney with this number expected to grow even further.
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