Globally, the same five ecosystems remain at the top of the ranking as in 2020 and 2021, but Beijing has dropped one place, with Boston taking its former place at No. 4. Silicon Valley is at No. 1, followed by New York City and London tied at 2. Seoul entered the global top 10 ecosystems for the first time, up six places from 16 in 2021 and 20 in 2020.
Startup Genome, an innovation policy advisory and research firm, noted that overall, China’s ecosystems have declined in the rankings, a reflection of the relative decline in early-stage funding in comparison to other ecosystems.
Bengaluru is ranked 5th globally for tech venture capital investment for the first five months of the year. During this period, Bengaluru’s tech firms have raised $7.5 billion in VC funding, considerably higher than the previous record of $5.2 billion during the first six months of 2021.
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.
India’s recent success is reflected in both Chennai and Pune moving up in the rankings. The Chennai ecosystem saw a $1 billion exit in business software startup Freshworks.
Mumbai has moved out of the emerging ecosystems category. Three exits over $1 billion (including Nykaa’s $7 billion valuation at IPO) and six unicorns contributed to the move.
The startup landscape has shifted substantially, with India surging close behind the United States and China. The country has seen a rapid rise in the number of large exits and early-stage rounds, and a substantial increase in ecosystem value. India minted 44 unicorns in 2021, raised a total of $72 billion in exits (up from $1.8 billion in 2020), the report said. The nation’s total dollar exit amount has multiplied 38 times from 2020 to 2021.
Six of seven Indian ecosystems tracked by Startup Genome – including Chennai, Pune, Telangana, and Kerala – climbed the rankings, benefitting from a dispersion of the tech economy.
Writing in Medium, Dev Khare, a partner at Lightspeed India, estimated that 30% of the country’s unicorns already were or are poised to go global, and not just those in the usual-suspect SaaS space. In India, he said, the conversation is shifting from whether the country’s entrepreneurs can build unicorns to whether they can build global category leaders.