Compass has released its much-anticipated Startup Ecosystem Ranking 2015 report in which it shares insights on the world’s top startup territories. The report combines results and information from 200 interviews with entrepreneurs from 25 countries, 11,000 surveys and insights from content partners that include Crunchbase, AngelList, Deloitte and Global Enterpreneurship Network.
The purpose of the research was to find the best places for budding entrepreneur to set up a startup while helping investors determine where they can find new startup opportunities around the world. To fulfill this mission, each city is ranked for Performance, Funding, Talent, Market Reach and Startup Experience in addition to an overall ranking.
Among the key findings, the report highlights a strong US presence with Silicon Valley continuing to dominate with a 50% growth in terms of exit value over the past two years.
Overall, the predominant startup ecosystems are located in North America and Europe, occupying 16 of the top 20 spots.
New York, Austin, Bangalore, Singapore, Berlin and Chicago have made the biggest leaps. New York City moved from position #5 to #2, Singapore from #17 to #10 and Berlin made an impressive jump from #15 to #9.
Meanwhile, Berlin has captured 6.10% of the value of all startup exits within the top 20 startup ecosystems over the past two years and has grown 20 times, primarily due to the two big IPOs of Rocket Internet and Zalando. In terms of VC investments, Berlin ranks #2 in Europe.
According to Compass, Berlin is home to between 1,800 to 3,000 active tech startups. By 2020, Berlin’s startups are expected to create as many as 40,000 new jobs.
London, which is ranked #6, is Europe’s largest ecosystem and the second fastest growing ecosystem in Europe, after Berlin and above Tel Aviv. In London, there are many hyper-growth startups in various sectors including media, fashion, e-commerce and fintech. Switzerland was not not covered in the report.
Singapore Fintech Hub
Another fintech hot spot is Singapore, which has been argued to be well positioned to become the leading fintech hub un Southeast Asia.
According to Compass, the government’s support of Singapore’s startup ecosystem played a major role in its rapid development.
However, talent is Singapore’s biggest bottleneck. It takes 21% longer to hire an engineer that in Silicon Valley and salaries are higher than in the rest of the Asia-Pacific region.
Overall, Asia is represented by Singapore and Bangalore in the top 20, ranking #10 and #15 respectively. However, countries such as China, Japan, Taiwan and South Korea are completely missing in the rankings, notably due to the language barriers limiting the data available, Compass said.
Read the full Startup report here: