June 15, 2022
Since 2012, Startup Genome, the policy advisory and research organization for public and private organizations dedicated to accelerating the success of their startup ecosystem, has published its annual report. A dense and detailed document on the state of the forces present and their evolution. Here are 3 highlights.
The Startup Genome’s Global Startup Ecosystem Report 2022 (GSER) was officially launched on June 14 at London Tech Week. GSER is the most comprehensive data-based study in the world, featuring an analysis of more than 280 entrepreneurial innovation ecosystems and 3 million startups. The report includes: a ranking of the top 140 ecosystems, insights by continent, as well as founder-centric articles written by leading experts.
So what to keep in mind this year?
1. An emerging ecosystem
1.65 trillion dollars in financing, 1,227 unicorns (a company worth more than a billion dollars), 70% of the new value created over the past ten years based on digital economic models … Suffice it to say we’re talking here’s about a thriving industry. According to Statista, for the first time in 2023, more than half of global GDP will come from “digitally transformed” businesses.
Especially since the pandemic, with the acceleration of online usage, has only exacerbated this disparity, as illustrated in the diagram below:
Startups have also made more money in recent years. Since 2012, the global average for Series A rounds has tripled to over $ 18 million. Appreciations have risen, on average, 239% in 10 years, with the strongest growth in the last rounds.
2. India is rising, China is slowing down, and ecosystems are becoming more diverse
Geographically, the Startup Genome points to the very fast growth of India, a country with 44 unicorns by 2021.
India has a large domestic market that has become more dependent on technology. But the country’s rise is not just a local phenomenon. In a Medium post, Dev Khare, a partner at Lightspeed India, estimated that 30% of unicorns in the country are already or will soon be globalized, ”it said.
The observation is less enthusiastic for its large neighbor in Asia.
In 2021, Beijing cracked down on companies like Didi, Tencent and Meituan because of issues including anti-competitive practices and data privacy. Jack Ma (founder of Alibaba) retired soon without being seen after the actions of regulators against Alibaba, ”the report added.
Finally, remember that there is only Silicon Valley and the rest of the world. A record 540 companies achieved unicorn status in 2021 and 113 ecosystems produced at least one juggernaut with over $ 1 billion in valuation. Twenty -two ecosystems – including Brisbane, Luxembourg, Santiago -Valparaiso and Ho Chi Minh City – have just created their first unicorns.
3. The best global ecosystem in 2022 is…
… Widely similar in 2021 and 2020! Especially Silicon Valley, New York, on a par with London, Boston and then Beijing.
Notable increases include Seoul, for the first time in the top 10, as well as Helsinki (Finland) and cities in India such as Delhi and Bangalore.
North America is almost half the leading innovation ecosystem while Asia and Europe are neck and neck.
Montreal is in 36th this year, far behind Toronto-Waterloo (17th) or even Vancouver (30th). Among its ecosystem characteristics, the report identifies quality of life, qualified and affordable talent, and government support.
Montreal’s startup ecosystem – like other regions of Quebec – now shows a strong dynamics of change, a high level of performance and attractiveness for both entrepreneurs and investors. Access to capital, talent and quality support from major private and public players working together enables our ecosystem to stand out globally in several innovative sectors, ”commented Guillaume Caudron, CEO of Réseau Capital , Quebec association of VC & PE.