[IT Note] Startup ecosystem: Best City Top10
Which city is the best in startup ecosystem?
The answers are top 10 cities as startup ecosystem ranking which are US 6, Israel 1, UK 1 & Germany 1, and top 20 are France, Brazil, India, Canada & Netherland, but no cities from Korea, Japan & China yet.
The basic factor for startup ecosystem are 3 things as below.
1) Seed money & funding supported by VC (Venture Capital) or big companies
2) New Ideation & technology developed by major universities, research institutes or IT firms
3) Fast proto-typing & commercialization driven by local government, community or big companies
Recently, US major cities learned success formula from Silicon Valley, and then it has expanded to NY, LA, Boston, Chicago, Seattle & Austin.
I think that good startup ecosystem will encourage more entrepreneurship to many challengers in US cities.
It's difficult to say which city is the "best" in the startup ecosystem as it depends on various factors and different people may have different criteria. However, based on current rankings and factors that contribute to a thriving startup ecosystem, some of the top cities for startups are:
- Silicon Valley: This is one of the most famous startup ecosystems in the world, known for its technology startups and venture capital firms. The area is home to companies such as Google, Apple, Facebook, and many others.
- New York City: New York has a diverse startup ecosystem, with companies in finance, media, fashion, and technology. The city is home to companies such as Etsy, Blue Apron, and Buzzfeed.
- Los Angeles: LA is known for its entertainment industry, but it also has a thriving startup ecosystem with companies in tech, media, and healthcare. Companies such as Snapchat, Dollar Shave Club, and The Honest Company are based in LA.
- Boston: Boston is home to some of the world's best universities and research institutions, which has led to a strong startup ecosystem in healthcare, biotech, and education. Companies such as HubSpot, Wayfair, and DraftKings are based in Boston.
- Tel Aviv: Tel Aviv is known for its startup ecosystem, particularly in the areas of cybersecurity, fintech, and artificial intelligence. Companies such as Waze, Mobileye, and Fiverr are based in Tel Aviv.
- London: London has a diverse startup ecosystem, with companies in finance, fashion, and technology. The city is home to companies such as TransferWise, Monzo, and Farfetch.
- Chicago: Chicago is home to a strong startup ecosystem in the areas of food and agriculture, healthcare, and logistics. Companies such as Grubhub, Groupon, and Tempus are based in Chicago.
- Seattle: Seattle has a strong startup ecosystem in the areas of technology and healthcare. Companies such as Amazon, Microsoft, and Zillow are based in Seattle.
- Berlin: Berlin is known for its startup ecosystem in the areas of fintech, e-commerce, and transportation. Companies such as SoundCloud, Zalando, and FlixBus are based in Berlin.
- Singapore: Singapore has a strong startup ecosystem in the areas of fintech, logistics, and healthcare. Companies such as Grab, Sea Group, and Acronis are based in Singapore.
There are more candidates for startup from other countries as belows.
- Paris - France's capital is home to a growing number of startups, particularly in fintech, e-commerce, and AI, supported by government funding and tax incentives.
- São Paulo - Brazil's economic powerhouse is a hub for tech startups, with a growing ecosystem of VC firms, accelerators, and corporate innovation programs.
- Bangalore - India's tech hub is known for its vibrant startup scene, particularly in software development, e-commerce, and digital media.
- Toronto - Canada's largest city is a rising star in the startup world, with a growing ecosystem of startups, accelerators, and government support.
- Amsterdam - The Netherlands' capital is a thriving hub for startups, particularly in fintech, e-commerce, and creative industries, with a strong focus on sustainability and social impact.
It's worth noting that startup ecosystems are constantly evolving, and new cities are emerging as contenders all the time. The key factors that contribute to a successful startup ecosystem are access to funding, talent, and resources, supportive government policies and regulations, and a culture of innovation and entrepreneurship.
In the US startup ecosystem, the typical funding rounds for a startup are as follows:
- Pre-Seed: This is the very first stage of funding for a startup. At this stage, the startup is usually in its ideation phase or just starting to build its product. Pre-seed funding is typically provided by the founders, family and friends, angel investors, and sometimes crowdfunding platforms. The average funding amount at this stage ranges from $25,000 to $500,000.
- Seed Round: This round of funding is raised once the startup has a minimum viable product (MVP) and is looking to scale its business. At this stage, startups typically receive funding from angel investors, early-stage venture capitalists (VCs), and some crowdfunding platforms. The average funding amount at this stage ranges from $500,000 to $2 million.
- Series A: At this stage, startups have gained traction and are generating revenue. The funding is used to scale the business, build the team, and invest in marketing and sales. The investors at this stage are typically venture capitalists and some private equity firms. The average funding amount at this stage ranges from $2 million to $15 million.
- Series B: At this stage, startups have already proven their business model and are looking to expand into new markets or product lines. The funding is used for expansion and hiring talent. Investors at this stage are typically venture capitalists, private equity firms, and sometimes hedge funds. The average funding amount at this stage ranges from $10 million to $50 million.
- Series C: This round of funding is raised by startups that have already achieved significant market traction and are looking to expand globally. The funding is used to acquire other companies, expand globally, and invest in research and development. The investors at this stage are typically venture capitalists, private equity firms, and sometimes investment banks. The average funding amount at this stage ranges from $50 million to $100 million.
It's important to note that these funding rounds are not set in stone and can vary depending on the startup's industry, growth trajectory, and funding needs.
