Bangalore slips to 19th rank in list of top 20 startup ecosystems, Mumbai out [Entrepreneurs work harder but are less ambitious]
Bangalore, the only Indian city which made it to the list of top 20 startup ecosystems around the world has slipped to 19th rank from 9th position in April this year, according to Startup Genome’s latest report.
Silicon Valley retained its number one position while Tel Aviv (Israel) moved to number 2 position, replacing New York City which is now ranked 5th. Another Indian city, Mumbai, which was in the list last year, is now in the list of 20 runner ups.
The report from Startup Genome on was prepared using data collected from over 50,000 startups around the world and qualitative interviews in collaboration with UC Berkely, Stanford and Telefonica Digital.
Some Key Findings
- Startups are 24 % more likely to monetize directly than Silicon Valley startups
- Entrepreneurs are as highly educated as valley entrepreneurs
- There is no significant difference in job creation between Bangalore and Silicon Valley
- There is similar motivation in Bangalore to SV: 56% of entrepreneurs in Bangalore pursue building a great product, 30% try to change the world. Interestingly, no entrepreneur in Bangalore wants to create a quick flip and clone already proven business models.
- Entrepreneurs commit as heavily as SV entrepreneurs to work full time before product/market fit.
- Entrepreneurs work almost 1 hour more per day compared to SV (10.86 vs. 9.95 in SV).
- There is an overall funding gap, with 74% less funding raised in Bangalore as in SV. There is a significant funding difference before and after product/market fit in Bangalore. In total, Bangalore startups raise 75% less capital in stage 2, 90% less in stage 3, and 73% less in stage 4 than SV startups.
- Bangalore startups tackle 67% more smaller markets than their peers in SV. They are 10% less likely to tackle $1B – $10B, and 51% less likely to tackle $10B+ markets. Overall, Bangalore startups are less ambitious.
About other ecosystems
- Even developed ecosystems such New York and London have more than 70% less risk capital available than Silicon Valley for Startups in the early, “PreProduct Market Fit” Stages of the Startup Lifecycle.
- Silicon Valley has left its imprint on global startup ecosystems all over the world through fluid immigration and emigration patterns. Berlin and Sao Paulo have the fewest number of founders that have lived in Silicon Valley before with 4% and 7% respectively, whereas Singapore and Waterloo have the most founders that have lived in Silicon Valley with 33% and 35%, respectively.
- Sydney, Sao Paulo and Moscow are the Startup Ecosystems that are the most differentiated from Silicon Valley in terms of the types of startups being built.
- Sydney is the global capital of data driven startups
- The cultural prominence of France’s private education system has strongly influenced the mentality of the Parisian population, with more than 96% of founders in the ecosystem completing at least a Masters degree or a PhD before starting a company.
- Even though Singapore has a relatively strong funding environment, the risk tolerance of the founders there is the lowest amongst the top 20 startup ecosystems.
- Melbourne is an upcoming startup ecosystem that ranks high in terms of adopting new trends within the startup world. But one of its biggest pain points is that local companies limit their potential by targeting very small niche markets instead of big global ones.
Full report here.
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