Welcome!

@CloudExpo Authors: Harry Trott, Kevin Jackson, Carmen Gonzalez, William Schmarzo, Pat Romanski

News Feed Item

Startup Ecosystems Around the World Fast Challenging Silicon Valley

Research launched today by the Startup Genome and Telefónica Digital reveals that while Silicon Valley is still the world’s largest and most-influential start-up ecosystem, it clearly is not the only city where technology is taking hold. Flourishing communities in Latin America, Europe, the Middle East and Asia have grown considerably over recent years and are now beginning to challenge Silicon Valley’s domination in technology innovation.

The Startup Ecosystem Report 2012 argues that this trend suggests that countries are shifting from service-based economies to become increasingly driven by a new generation of fast-moving software and technology organizations.

The report finds that Tel Aviv, a highly advanced ecosystem, is the leading alternative to Silicon Valley, while on Silicon Valley’s doorstep, flourishing communities in New York and Los Angeles mean the USA is home to three of the largest ecosystems in the world. Across the Atlantic, London is by far the largest startup ecosystem in Europe, although its output is still just a third of that of Silicon Valley. Outside of the more traditional markets, Sao Paulo’s startup ecosystem is growing rapidly and creates more jobs for the local community than Silicon Valley does for its own.

The report identifies the ecosystem factors which have contributed to the success of Silicon Valley and uses it as a baseline to compare how well suited other cities are to fostering entrepreneurs. On this basis the top 20 start-up ecosystems in the world are:

1. Silicon Valley                    

11. Paris

2. Tel Aviv

12. Sydney

3. Los Angeles

13. Sao Paulo

4. Seattle

14. Moscow

5. New York City

15. Berlin

6. Boston

16. Waterloo (Canada)

7. London

17. Singapore

8. Toronto

18. Melbourne

9. Vancouver

19. Bangalore

10. Chicago

20. Santiago

In-depth research provides tangible findings for entrepreneurs, investors and policy makers

The Startup Genome, in partnership with Telefónica Digital, engaged with more than 50,000 entrepreneurs across the world to understand how well placed different ecosystems are to support the development and success of startups. Users of the StartupCompass.co – a business intelligence tool for startups – submitted information on their organizations based upon a range of factors, including financial, sales, marketing, product, business model, team, and market information.

Some of the key findings of the report are as follows:

  • Even well-developed ecosystems such as New York and London are suffering from a funding gap: they each have more than 70% less ‘risk’ capital available for early-stage, pre-product-market fit startups
  • New York can claim to be the global capital for female tech entrepreneurs. Nearly a fifth of New York’s entrepreneurs are women and it is home to twice as many female-run startups as Silicon Valley.
  • Santiago is a great example of an ecosystem kick-started by policy makers, with Start-up Chile creating a strong support network for entrepreneurs. Santiago startups have 4.81 mentors on average, nearly 25% more than Silicon Valley.
  • Silicon Valley has left its imprint on all global startup ecosystems. Berlin (4%) and Sao Paulo (7%) have the least founders that lived in Silicon Valley, Singapore (33%) and Waterloo (35%) have the most entrepreneurs that were previously based in Silicon Valley.
  • Even though Singapore has a relatively well-established funding environment, the risk tolerance of founders is the lowest within the top 20 ecosystems.

Mapping key startup trends around the world

“I am really excited to reveal these insights around how global technology startup ecosystems stack up. Our hope is by completing the first data-driven, comparative study of this global phenomenon we will help to facilitate a constructive public dialogue,” explained Bjoern Lasse Herrmann, CEO of the Startup Genome. “We created this report for three reasons: firstly, to put a spotlight on the emerging hotspots of technology entrepreneurship that will be responsible for powering a massive global socio-economic structural shift; secondly, to further democratize the knowledge necessary to help spread the merits of Silicon Valley; and thirdly, to give actionable insights to entrepreneurs, investors, corporate development departments and policy makers.”

Gonzalo Martin-Villa, CEO of Wayra, Telefónica Digital’s global startup accelerator, said: “These results tangibly demonstrate how entrepreneurship is flourishing all over the world. We are now seeing emerging ecosystems beginning to act as real viable alternatives to the traditional centers of technology innovation. This is incredibly exciting, since it suggests that, increasingly, the necessary support infrastructures are in place the world over for bright minds to turn their ideas into reality.”

Steve Blank, a Silicon Valley serial entrepreneur and contributor to the report, said: “The democratization of entrepreneurship from Silicon Valley and from Startup Ecosystems all over the world is creating new strategies and structures for innovation and disruption. The strategy lessons that we learn from these startups will light the way for a massive restructuring of all corporate organizations in the next 40 years. Only then will we look back and realize that we were just beginning the economic revolution of the wired world.”

The full report can be downloaded from http://blog.startupcompass.co/pages/entrepreneurship-ecosystem-report. A shorter press summary paper is also available. The authors of the report can be engaged with by tweeting about this report using #startupecosystem and mentioning @tefdigital and @startupcompass.

Notes to editors: report methodology

The Startup Ecosystem Report 2012 is a correlational study based upon data points taken from 50,000 users of StartupCompass.co. Global trends have been identified by completing linear and probit regression analyses. A full methodology is available within the report.

About the Startup Genome

The Startup Genome (http://blog.startupcompass.co) was inspired by the global explosion of entrepreneurship and Kauffman's landmark study from 2010 that showed U.S. job growth was driven almost entirely by startups. In 2011 the company set out to help address the continuing very high failure rate of startups and to accelerate the pace of innovation by transforming the business world from gut-driven to data-driven. The Startup Genome’s business intelligence product, Startup Compass (http://startupcompass.co), is now being used by tens of thousands of software businesses around the world, providing benchmarks and recommendations to help entrepreneurs and executives to make decisions and allocate resources under conditions of high uncertainty. Since its inception the Startup Genome, together with researchers from UC Berkeley, Oxford, and Stanford, and entrepreneurial thought leaders like Steve Blank, has also released a number of well-regarded reports on the startup lifecycle, the success and failure of startups, and startup ecosystems, that have been adopted into the curriculum of more than 100 universities, incubators and accelerators.

About Telefónica Digital

Telefónica Digital is a global business division of Telefónica. Its mission is to seize the opportunities within the digital world and deliver new growth for Telefónica through research & development, venture capital, global partnerships and digital services such as cloud computing, mobile advertising, M2M and eHealth. It is also driving innovation in over the top communications under a new umbrella brand called TU and in Big Data through Telefónica Dynamic Insights. Telefónica Digital will deliver these new products and services to Telefónica's 311 million customers as well as entering new markets. It is headquartered in London with regional centers in Silicon Valley, Sao Paulo, Spain and Tel Aviv. Jajah, TokBox, Terra, Media Networks Latin America, 48 and giffgaff are all managed under the Telefónica Digital umbrella.

For thought leadership on startups, Silicon Valley trends and more from Telefónica Digital, visit www.telefonica.com/digitalhub and track them on Twitter @tefdigital.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.