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Indian cities rise in global start-up ranks, China’s ecosystems slip
- China’s start-up ecosystems suffered a decline in the ranking, says Startup Genome report
Several Indian ecosystems have risen in the global start-up ecosystem rankings, most notably Delhi, according to a report. Delhi is 11 places higher than in 2021, entering the top 30 for the first time at 26, says a report by Startup Genome, a policy advisory and research organization for public and private organizations.
Bangalore, the Indian city which is home to the R&D centers of some of the world’s most famous tech companies, including Amazon, Microsoft, Facebook, and Google, has moved up one place from last year, to 22.
“India has seen a rapid rise in the number of large exits and early-stage rounds, and a substantial increase in Ecosystem Value. The nation produced 44 unicorns in 2021, and exits rose to $14 billion — a 10-fold increase over 2020. Delhi and Mumbai joined Bangalore in the top 40,” the report said.
On the other hand, China’s ecosystems suffered a decline in the ranking. The performance of Chinese startup hubs is declining for the first time since the global startup ecosystem ranking report has been published. Eight of the 13 cities studied fell in this year’s rankings.
"China, is experiencing the impact of government regulation. In 2021, Beijing cracked down on companies over issues including anti-competitiveness and data privacy. Global investors suffered when the Chinese government went after its Edtech industry in July, and it raised constraints on overseas IPOs in December, the report said.
Beijing has dropped one place, with Boston taking its former place at 4. Silicon Valley has been ranked 1, followed by New York City and London tied at 2, Boston at 4, and Beijing at 5.
But China remains a startup powerhouse — venture investment in 2021 rocketed above $130 billion, according to Bloomberg, says the report.
Other findings from the report:
A record 540 companies achieved unicorn status in 2021, up from 150 in 2020.
Seoul entered the global top 10 ecosystems for the first time, up six places from 16 in 2021 and 20 in 2020.
Helsinki has risen more than 20 places from last year, joining the runners-up category at joint #35.
In 2021, Brazil saw 237% growth in the dollar amount of Series B+ rounds compared to 2020. The nation’s total exit amount for 2021 was $49 billion, a huge leap from $1 billion in 2020.
Asia experienced a 312% increase in the dollar amount of exits over $50 million from 2020 to 2021.
In 2021, the dollar amount of exits in London grew 413% from 2020. The ecosystem’s Series B+ rounds increased 162% in terms of dollar amount from 2020, and it saw 55% more $50 million+ exits in 2021 versus 2020.
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First Published:14 Jun 2022, 05:33 PM IST
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