All the Asian countries have a reason to rejoice. According to new data compiled by CB Insights, a research firm, four Asian cities which include Bangalore, Beijing, Shanghai and Tokyo have occupied the top four ranks in terms of the rate at which the VC deals are being made in them. This new accomplishment by the Asian cities validates the point that Asian cities are in fact the fastest growing technology startup hubs in the whole wide world.
The research firm compared tech deals made in the twelve month period ending last month with those in the previous twelve months. Cities which had twenty or more deals were only considered by the research firm.
Beijing saw a 165 percent growth, with the deals increasing by three times, while Tokyo saw a 126 percent growth. The number of deals increased by 81 percent in Shanghai, and Bangalore on the other hand saw a 66 percent rise in its deals.
India saw its three other cities also making the cut into the top 25 positions. Gurgaon, Mumbai and Delhi made it to the top 25 proving the fact that the startup ecosystem and activity is spreading with full force in the country. This accomplishment by the Indian cities also backed a recent study which stated India as the fastest growing startup ecosystem in the world. According to the study, around 800 startups sprout in the country on an annual basis.
The report by CB Insights gives more importance to the growth in the number of deals that the total amount of the investments, as it often gets distorted by a few mega deals. But even if we go by the dollar terms, four Indian cities still made it to the top 20, with Gurgaon sitting at number 5 and Delhi at number 6, all because of the humongous funds inflow by Softbank to taxi app Ola and ecommerce site Snapdeal.
Bangalore acquired the 11th position on the funding growth list, while Beijing was 20th, Shanghai 22nd and Tokyo came in at 27th position. The list was topped by St. Louis in Missouri, America and followed by Cincinnati, Munich and Los Altos.
With such great number of startups sprouting in the region, Asia can soon turn into the next Silicon Valley of the world.