Where Do Startups Flourish Most? This Ranking Has The Data-Backed Answers

It’s official: Silicon Valley is the No. 1 place in the world to launch a startup.

While that may not exactly seem like news, it’s not a simple declaration: There’s data behind the Valley’s vaunted status. Specifically, the Global Startup Ecosystem Report, a comprehensive analysis of the current state of startup ecosystems worldwide created in partnership with the Global Entrepreneurship Network, Dealroom, Crunchbase, and Bella Private Markets.

The steadiness of Silicon Valley isn’t an outlier in the 12th annual GSER, released June 10. It was followed for the fourth straight year by New York City and London, which tied for No. 2. Meanwhile Tel Aviv moved up one rank into a tie with Los Angeles at No. 4; and Tokyo entered the top 10, moving up a five places from No. 15 in the GSER 2023 — the most significant improvement among the top-10 ecosystems.

Read Poets&Quants’ coverage of The Top MBA Startups and Our ranking of the world’s best MBA programs for entrepreneurship

2 CHINESE ECOSYSTEMS DROP; 1 RISES

The Global Entrepreneurship Network operates programs in 200 countries aimed at supporting the creation and scaling of new businesses. The GSER is based on “research and analysis of data from 4.5 million startups across 300 global ecosystems and over a decade of independent research and providing policy advice to more than 160 economic and innovation ministries and public/private agencies in over 55 countries.”

Key insights from the 2024 GSER include:

• Seoul, Korea has moved up 3 spots and is now ranked No. 9, entering the top 10 ecosystems.
• Miami, Florida has also made progress, reaching No. 16 in the top 20 ecosystems, up seven positions from last year.
• The top two Chinese ecosystems have dropped in the overall rankings: Beijing by one place and Shanghai by two, now standing at No. 8 and No. 11, respectively. Shenzhen, however, has shown impressive growth, moving up seven spots to rank No. 28.
• Paris has moved up an impressive four places from last year to reach #14.
• Zurich, Switzerland and Munich, Germany have moved up by five and four positions, respectively, entering the top 35 at No. 31 and No. 33.
• Seattle, Washington declined precipitously: The city ranked ninth in 2022 and 10th in 2023 dropped 10 places to 20th this year.

‘THE MOST IMPORTANT THING THAT WE CAN DO’

“We persist in our role as expert advisors, dedicated to accelerating entrepreneurship and growth in startup ecosystems and innovation clusters worldwide,” says Stephan Kuester, managing partner at Startup Genome, in a news release accompanying the report that his group presented. “The Global Startup Ecosystem Report, as the most comprehensive and data-driven analysis in this domain, serves as the foundation of our mission. Armed with the right knowledge, we work side by side with entrepreneurs, policymakers, and community leaders globally in demonstrating how innovative technologies can drive exponential economic growth.”

Adds Jonathan Ortmans, president of the Global Entrepreneurship Network: “Creating more entrepreneurs is the most important thing that we can do as an ecosystem of enablers and policymakers. Entrepreneurs are naturally attracted to the most important challenges of the day and seek to apply the best ideas and technologies for solutions. The progress we make on these issues in the next decade will determine the success of the next 100 years and beyond. The prize is finding solutions to global needs faster.

“It is why we stay the course and work day and night to build an environment where ordinary citizens are empowered to become entrepreneurs and to flourish in healthy, advancing ecosystems.”

READ POETS&QUANTS’ COVERAGE OF THE TOP 100 MBA STARTUPS and OUR RANKING OF THE WORLD’S BEST MBA PROGRAMS FOR ENTREPRENEURSHIP IN 2024