StartUp Genome just dropped its Global Startup Ecosystem 2017 Report, and it doesn’t look so good for India. The country, which has a large ecosystem of 4,500 startups – the third largest in the world, has only one representation in the top 20. Further, what’s more disappointing is the fact, that its only representation Bangalore has also dropped by five positions from previous year and finished last at 20th position.
The report, which has tracked 55 startup ecosystems across 28 countries, aims to provide an independent and accurate analyses of the startup ecosystems from all over the globe. The top 20 have been ranked on four variables – startup funding, performance, market reach, talent and experience.
It is interesting to note here that once upon a time, Singapore and Bangalore used to be the only two Asian representatives on StartUp Genome’s Global Startup Ecosystem report. But now, the top 20 list includes five Asia Pacific cities: Beijing, Shanghai, Sydney, Singapore and Bangalore.
According to the report, there has been “considerable movement” in the startup ecosystems all around the world in the last one year.
Two of the five Asia Pacific cities, Singapore and Bangalore witnessed a fall in their rankings, with Singapore falling from 10th place to 12th and India, as stated above, from 15th place to last place. The report noted that even though both the countries saw their rankings falling from the previous year, but they would still continue growing.
While Singapore ranked well when it came to access and cost, it got middled when it came to quality. Bangalore, on the other hand, got applauded for its abundant talent pool, but according to the report, the talent in the city is still very immature and inexperienced when compared to other countries.
However, talents in both countries made up for this with their low cost. Bangalore emerged on the top, with the average engineer in Bangalore costing around US$8,900 a year, which is almost thirteen times cheaper than what an engineer costs in the Silicon Valley.
Beijing and Shanghai, the two representatives from China on the list, made a amazing debut in the top 20, standing at 4th and 8th position respectively. The two cities were ranked strong when it came to funding – in terms of both quality and ease of access– reflecting that China has high levels of liquidity.
Shanghai finished at a lower position than Beijing because the former’s performance suffered due to lack of quality VCs who can lend their expertise and experiences to the founders in the city. Also, Beijing strong image as an education hub and the administrative center of China has worked wonders for the Chinese capital.
The constant government support towards entrepreneurs and startups played a crucial role in boosting the rankings of Beijing, Shanghai and Singapore.
Overall, the report painted a picture that the Silicon Valley is expected to continue its dominance on the world startup scene in years to come. However, the report did point towards the fact that the city has started trailing behind certain countries in some aspects such as exit value, which reflects the city’s strong dependence on the thriving private industry.
Aside from the top 20 list, StartUp Genome also gave a shoutout to several other players in the Asia Pacific area which were doing inspirational work. This included Sri Lanka, Melbourne, Seoul and Kuala Lumpur.
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