Delhi, NCR, Bengaluru Beat Global Bigwigs Now Rank in Top 10 Startup Cities Globally

HexGn released a study of the funding trends in the global Startup ecosystem in 2019; the team analyzed over 60,000 deals and one million data points for the report. Globally, the total funding for technology Startups this year dipped by 22 percent to $293 billion from $375 billion in 2018, with a 27 percent drop in deals.

India Grows while Global & Asian Funding Declines

 

 

Asia is bearing the brunt of global slowdown with Startup funding in Asia, dropping by a whopping 56% from $158 billion to $83 billion. Despite the turmoil, Investments in Indian Startups grew by 18% to $14 billion in 2019, defying the global Startup funding downturn. India has performed better both in the number of deals as well as funding in value terms. While the number of Startup deals in India fell by only 15% (down 27% globally and in Asia), Startup funding in value terms rose by 18% (down 22% globally and down 56% in Asia).

Delhi NCR & Bengaluru among “Global Top 10 Cities for Startup Funding” for 2020

Cities have always been central to the Startup ecosystem because of entrepreneurial culture, acceptance of failures, easy access to investors and people. It takes time and an amalgamation of enterprising people, tech-savviness, an investor with risk appetite, and in some cases government encouragement for such centers to emerge, India is doing well on this front too, for the first time, we have two Indian cities, New Delhi and Bengaluru, debuting in the HexGn “Global Top 10 cities for Startup funding”. This is no small feat, considering that quite a few global heavyweights didn’t make it, including Hong Kong, Berlin, Boston, Paris, and Shenzhen.

India also joins a select group of only three countries, with more than one city in the top ten along with the US and China. Bengaluru moved up one rank from 11th in 2018 to 10th in 2019. However, the biggest surprise has been New Delhi, which leapfrogged Bengaluru, to debut for the first time in the top 10 at the 6th place. The emergence of New Delhi as the new Startup capital of India has been steered by the likes of Paytm, Oyo, and Zomato, among others. New Delhi attracted $7.4 billion in Startup funding compared to $4.4 billion attracted by Bengaluru.

Indian Startups Attract Funding Across Sectors

While E-commerce has customarily been the sector to attract the most funding in India, this year, too, it has continued its strong march, attracting $2.2 billion in funding. Transportation and Logistics Startups, riding on the success of bike-sharing, mobility, and freight aggregators, have gathered pace in 2019, attracting funding of over $2.4 billion.

However, Fintech remained the leader garnering over $4.1 billion in funding, given the huge potential of the Sector and thrust towards transparency and digital payments from the Government of India.

The Indian Government’s push for digital payments and globally acknowledged initiatives like the UPI is probably the most significant game-changer in Fintech and a model system for other countries to follow. Many Global players, including Google, have been urging their home countries to adopt a system similar to the UPI payment system.

As per HexGn, this was one of the most significant initiatives launched by any government across the globe in digital payments. With new initiatives, like FASTag for digital highway toll collection, Emergence of UPI payment system, and a continued increase in Digital transactions, it means that Fintech will remain the Sector that will see the considerable interest in 2020 as well.

Although all seems spot-on, Indian Startups in emerging technologies like Artificial Intelligence, Blockchain, and Cybersecurity attracted minuscule investments both at the seed and Series A stage in 2019.

Top Ten Startup Cities for 2020

In the 2019 annual Startup report, HexGn announced the Top Ten Startup Cities for 2020. In the order of global ranking, they are, San Francisco Bay Area, New York, Beijing, London, Shanghai, Delhi NCR, Singapore, Los Angeles County, Hangzhou, and Bengaluru. These top ten cities from five countries, the United States, the United Kingdom, China, India, and Singapore, account for 58 percent of global funding, signifying its standing.

About HexGn

HexGn, through its global research, industry events, and online programs, equips individuals and businesses to tap into new opportunities, Start new ventures and Future Proof themselves.

~ Newsvoir

Why Gurgaon is a Better Startup Hub than Bangalore?

In recent years, Gurgaon beat Bangalore in the race of a better startup hub. It is booming best startup destination all along with superlative facilities and encouraging ecosystem. Why starting up your start up in Gurgaon is more beneficial than Bangalore? Well, to know the answer of this question, read below the nitty- gritty details of the advantages of Gurgaon.

Days have gone when Bangalore is the solitary MECCA of startups in India! Now Gurgaon, a NCR area is the latest favorite destination for new generation startups. The city has nurtured more than 1500 startups including big deals’ websites like Paytm, Sanpdeal, Jabong, Zomato, ixigo, Makemytrip and many others. OYO Rooms, Grofers, Nearify, Survey42, Roposo MadPiggy and Near.in are few of others who paved the road for themselves just in past two years.

Gurgaon Transformations

When it comes to establishing a start-up in Gurgaon, the millennium city has a lot more to offer in comparison to Bangalore. Establishment of roads, buildings and official infrastructure unlocks thousands doors of opportunities for startups and supports to turn in to big brands quickly by grabbing the attention of international investors for funding. About 60 e-commerce companies succeed to get funding since 2011. On the other hand, less improvements in Bangalore ecosystem somehow makes difficult for many startups to carry on for a long time period. Below are few other comparison points:

• 
  

  High Internet Penetration

  
  Gurgaon has overpowered Bangalore in internet revolution. Reports claim that the city has high level internet penetration with a regular internet use in almost every home. So in this way, it scores high in better internet facilities in comparison to Bangalore. Additionally, easy access to internet also helps startups to stay connected with their target audiences so that they can get feedback on their products and services quickly and it help them in fast improvements.


• 
  

  Less Employee Attrition

  
  Talking of this point Harman Singh, Founder and CEO, WizIQ says, “The main drawback of establishing a start-up in Bangalore is the employee attrition. The IT industry in Bangalore has a high attrition rate and talent retention is extremely hard. This can be detrimental to a start-up, particularly during the early phase of its growth. Gurgaon, on the other hand, demands fewer efforts for making employees happy and satisfied because it offers a vibrant and healthy environment with start-up friendly locations for entrepreneurs and they can establish their operations effortlessly at low cost.” Singh has started WizIQ, one of the world’s largest cloud based education podium in Gurgaon in 2007. Today it has over 400,000 educators who deliver learning classes to millions of learners across the world.


• 
  

  Healthy Ecosystem

  
  To incubate more number of startups, the Government of Haryana and NASSCOM has announced to set-up a 16-acre warehouse in Gurgaon. This is not one and only program to make healthy startup ecosystem but many other networking platforms are also taking start-ups, mentors and investors together to incubate more startups along offering one-on-one mentorship. Singh elaborates, "A healthy ecosystem lessen the initial cost and complexities for startups and enables them to expand rapidly into newer markets."


• 
  

  Connectivity with Different Regions

  
  Unlike Bangalore, Gurgaon has a world class metro along an international airport within a 10km distance. This infrastructure makes possible an easy access to diverse manpower and markets. Vivek Bhargava, Director & Co-founder of Yuvi Hospitality Pvt. Ltd. praises Gurgaon for well connectivity system. “The city is very well-connected with the regions like Delhi, Noida, and Faridabad which is not in the case of Bangalore,” says Bhargava. He has started his food venture “Yuvi Hospitality” in Gurgaon in June 2015. The company has succeeded to create a distinctive space in the F & B segment besides raising a funding of about Rs 100 crore from Chandralekha Construction Pvt. Ltd. in early stage.


• 
  

  Diversity in Culture Serves Variety in Talent

  
  With high population from different states, startups can hire great talent at low cost. Elucidating more about diversity in culture and available talent, Bhargava adds, “The population of the city is very diverse and it make Gurgaon a cool place for startups. You can find the talent people unlike Bangalore where people are inclined towards software &IT technology."


• 
  

  Vicinity of IIT and other Big Universities

  
  Gurgaon has easy access to famous universities and colleges that make simple for startups to take talented employees on board. Startups can hire interns at low cost and give exposure with adding value in their startups. Additionally, modern lifestyle and flexible work atmosphere attracts young age talent to join startups.


• 
  

  Easier to find a co-founder and Investor

  
  According to Bhargava, "As most of the seed angel money is concentrated in Delhi and Mumbai and having a Gurgaon based start-up has an additional advantage. It give them more frequent access to early stage funds that are vital for any venture’s success."


• 
  

  Best Product Testing Destination

  
  Gurgoan has an urban population that buys the products and services and gives prompt response. Most of the population is wealthy and that’s what exactly helps startups to know about the status of their products.

These are some points which are making Gurgaon a better startup hub than Bangalore!

[vc_column width="1/1"][td_text_with_title title="Author Of This Article"]Rita G Chauhan enjoys writing about business ideas, startups, business services and helpdesks for startups who face challenges and always hunt for informative writing pieces online. You can check out about her works online especially at Franchise India website. She has also written for various article sites like EzineArticles and ArticlesBase etc.. She contributes blogs on different topics for websites, blogspot and wordpress for SEO and online promotion purposes.[/td_text_with_title][/vc_column][/vc_row]

Bangalore, Mumbai, NCR Tops Preferred Locations For Startups In India: CBRE report

According to statistics, India ranks third in the number of startups in the world. It is becoming popular by the day, with startups mushrooming everywhere and investors putting their funds in this region. The startup culture in India has spread to a lot of cities and is not just restricted to the metros anymore. But despite this increasing popularity, we still see the same 3-4 names when it comes for startups to set up their bases. Startups are still sticking to the conventional cities to buckle down and set up their offices.

The name that comes on top here is Bangalore. Bangalore is like the Silicon Valley of India, with its incessantly increasing number of startups. Bangalore is like the nectar to the bees that are startups. Even within Bangalore there are certain regions that are more popular than the rest. HSR Layout, Indira Nagar and Koramangala in Bangalore are the top three places where you can find startups. Bangalore is not just a popular name in India, it has been ranked 15th in the Global Startup Ecosystem Rankings.

The other two names that pop up from the crowd are Mumbai and NCR. Being more specific, the startup flooded regions are Powai in Mumbai and Sohna Road, Udyog Vihar, and Sectors 32 and 44 in Gurgaon. Other cities that trail behind are Ahmadabad, Pune, Hyderabad and Chennai. When looking to set up offices, startups should focus on main things like cost, location, flexibility and feasibility more than anything else. And other factors should take a back seat and should be brought into the picture only after the above four are met. India is becoming the place to have a startup and is becmoing popular by the minute.

At present in Bangalore, corporate occupiers and startup firms remain focused on the Outer Ring Road (ORR) stretch between Marathalli and Sarjapur Road; going forward, an incremental shift towards newer locations such as North Bangalore is expected. This is mainly owing to factors such as attractive lease rents, improving social / physical infrastructure and residential developments in the vicinity of the office clusters.

For the purposes of this View Point, CBRE evaluated office location choices of more than a 100 startup office occupiers across leading cities in India over the past two years. Below are the key highlights:

• 
  
  India’s rising information technology (and allied services) sector, supported by the rising smart phone usage, has been the backbone of most startups in the country. The country’s burgeoning IT sector has resulted in a spate of IT/ITeS startups providing specialized, niche services such as cloud computing, financial technology, software design and IT consulting, among others, particularly prevalent in Bangalore. The success of e-commerce in the country has also contributed to the growth of startups providing services such as online shopping, online payment, transport and other support services.


• 
  
  CRE (Corporate Real Estate) strategies can play an important role in identifying the overall business strategy of startup businesses, as they have a significant implication on operational cost. Office location options should be chosen on the basis of the needs of a startup company and its current ‘growth stage’. Cost, location and flexibility are the key factors driving the office space choices of startups, followed by the support services offered, and proximity to social infrastructure.


• 
  
  Cost control on real estate portfolio. Due to the uncertain nature of the operations/survival of startups, it is imperative that real estate options are considered keeping cost control in mind to avoid serious ramifications.


• 
  
  Choice of location. While the right choice of office format is imperative, location of office space is also a strategic decision. Our analysis reveals that there is a concentration of organized startup office take-up in the top cities of Bangalore, Gurgaon and Mumbai. The report also identifies specific locations in these cities that provide a conducive environment for startups. Preferred locations include HSR Layout, Indira Nagar and Koramangala in Bangalore; Sohna Road, Udyog Vihar, and Sectors 32 and 44 in Gurgaon; and Powai in Mumbai.


• 
  
  Office space selected by startups should ideally be in suburban locations resulting in maximum cost control. The rental differential between core and suburban office locations is significant across various cities (100% in the case of Gurgaon; 300% in the case of Mumbai and 60% in Bangalore). Even if a broad comparison is drawn between the micro-markets preferred by startups and prominent secondary locations of leading cities, a rental differential of as low as 13-15% in case of Mumbai and as high as 35-50% in case of Gurgaon will be observed. It is thus recommended that startups continue to focus on operating out of cost effective suburban markets to fuel their expansion-led office leasing requirements.


• 
  
  Flexible leasing terms. We feel that startups and landlords should engage in lease terms that can ease exit, lower cost and sustain them during their growth phases. It is recommended that both landlords and startups should remain open to incorporating ‘customized solutions’ such as allowing for limited fit-out costs or the absence of a lock-in period to lower costs.

Bangalore, Mumbai, NCR Tops Preferred Locations For Startups In India: CBRE report

According to statistics, India ranks third in the number of startups in the world. It is becoming popular by the day, with startups mushrooming everywhere and investors putting their funds in this region. The startup culture in India has spread to a lot of cities and is not just restricted to the metros anymore. But despite this increasing popularity, we still see the same 3-4 names when it comes for startups to set up their bases. Startups are still sticking to the conventional cities to buckle down and set up their offices.

The name that comes on top here is Bangalore. Bangalore is like the Silicon Valley of India, with its incessantly increasing number of startups. Bangalore is like the nectar to the bees that are startups. Even within Bangalore there are certain regions that are more popular than the rest. HSR Layout, Indira Nagar and Koramangala in Bangalore are the top three places where you can find startups. Bangalore is not just a popular name in India, it has been ranked 15th in the Global Startup Ecosystem Rankings.

The other two names that pop up from the crowd are Mumbai and NCR. Being more specific, the startup flooded regions are Powai in Mumbai and Sohna Road, Udyog Vihar, and Sectors 32 and 44 in Gurgaon. Other cities that trail behind are Ahmadabad, Pune, Hyderabad and Chennai. When looking to set up offices, startups should focus on main things like cost, location, flexibility and feasibility more than anything else. And other factors should take a back seat and should be brought into the picture only after the above four are met. India is becoming the place to have a startup and is becmoing popular by the minute.

At present in Bangalore, corporate occupiers and startup firms remain focused on the Outer Ring Road (ORR) stretch between Marathalli and Sarjapur Road; going forward, an incremental shift towards newer locations such as North Bangalore is expected. This is mainly owing to factors such as attractive lease rents, improving social / physical infrastructure and residential developments in the vicinity of the office clusters.

For the purposes of this View Point, CBRE evaluated office location choices of more than a 100 startup office occupiers across leading cities in India over the past two years. Below are the key highlights:

• 
  
  India’s rising information technology (and allied services) sector, supported by the rising smart phone usage, has been the backbone of most startups in the country. The country’s burgeoning IT sector has resulted in a spate of IT/ITeS startups providing specialized, niche services such as cloud computing, financial technology, software design and IT consulting, among others, particularly prevalent in Bangalore. The success of e-commerce in the country has also contributed to the growth of startups providing services such as online shopping, online payment, transport and other support services.


• 
  
  CRE (Corporate Real Estate) strategies can play an important role in identifying the overall business strategy of startup businesses, as they have a significant implication on operational cost. Office location options should be chosen on the basis of the needs of a startup company and its current ‘growth stage’. Cost, location and flexibility are the key factors driving the office space choices of startups, followed by the support services offered, and proximity to social infrastructure.


• 
  
  Cost control on real estate portfolio. Due to the uncertain nature of the operations/survival of startups, it is imperative that real estate options are considered keeping cost control in mind to avoid serious ramifications.


• 
  
  Choice of location. While the right choice of office format is imperative, location of office space is also a strategic decision. Our analysis reveals that there is a concentration of organized startup office take-up in the top cities of Bangalore, Gurgaon and Mumbai. The report also identifies specific locations in these cities that provide a conducive environment for startups. Preferred locations include HSR Layout, Indira Nagar and Koramangala in Bangalore; Sohna Road, Udyog Vihar, and Sectors 32 and 44 in Gurgaon; and Powai in Mumbai.


• 
  
  Office space selected by startups should ideally be in suburban locations resulting in maximum cost control. The rental differential between core and suburban office locations is significant across various cities (100% in the case of Gurgaon; 300% in the case of Mumbai and 60% in Bangalore). Even if a broad comparison is drawn between the micro-markets preferred by startups and prominent secondary locations of leading cities, a rental differential of as low as 13-15% in case of Mumbai and as high as 35-50% in case of Gurgaon will be observed. It is thus recommended that startups continue to focus on operating out of cost effective suburban markets to fuel their expansion-led office leasing requirements.


• 
  
  Flexible leasing terms. We feel that startups and landlords should engage in lease terms that can ease exit, lower cost and sustain them during their growth phases. It is recommended that both landlords and startups should remain open to incorporating ‘customized solutions’ such as allowing for limited fit-out costs or the absence of a lock-in period to lower costs.

Here Are The World’s Leading Startup Cities

Silicon Valley and the San Francisco Bay Area have been synonymous with the term "startup" for as long as one can remember. These places have been instrumental in giving birth to some of the top notch companies in the current times like Facebook, Intel, Apple and Twitter etc. But, the numero uno place of these startup desirable places have been in danger for last couple of years since the mushrooming of more and more startups in different parts of the world.

The 2015 edition of the Global Startup Ecosystem Rankings from Compass provides a new ranking for the world’s leading startup cities and throws open some interesting points for the startup world to wonder upon. The previous edition of the report was released way back in 2012. The new rankings have been calculated on the basis of data collected from 11,000 global startups, interviews with more than 200 entrepreneurs, and data from Crunchbase and other such sources.

According to the new report, Silicon Valley has again emerged as the best startup ecosystem in the world by acquiring the first position. New York takes the second position, climbing three positions from its previous ranking in 2012. Los Angeles rests on the third position and Boston on fourth. Boston’s ranking may come as a surprise to many, as its much-heralded Route 128 high-tech cluster was considered amongst the top two most desirable places for startups. The United Sates again walked away with the largest share of the cake by having seven cities in the top 20 list.

[caption id="attachment_100588" align="aligncenter" width="664"] via - startupcompass.co[/caption]

But if we have a second look at the list, we observe a significant rise in new startup ecosystems around the world. Tel Aviv at fifth position, London at sixth, Berlin at ninth, and Singapore at 10th position are some of the examples of the change in the World startup scene.

There's good news also for India. Bangalore emerges on the list of the world’s top 20 leading startup ecosystems at a decent 15th position. The rankings of Tel Aviv, Singapore, São Paulo, and Bangalore holds testimonial to the fact of how the startup scene is emerging in the so-called emerging economies.

The report also predicted the trajectories of the world’s leading startup cities. Silicon Valley again marches away way ahead of others at the first position. Startup cities like New York, Austin, Bangalore, Singapore, and Chicago were ranked as fastest moving startup cities, according to the list.