The 2023 Global Startup Ecosystem Index (GSEI) has been released by StartupBlink, a prominent global startup ecosystem map and research centre. This comprehensive index provides practical insights into local startup economies for policymakers, ecosystem stakeholders, founders, and investors.
StartupBlink emphasizes the importance of choosing the right location for startups, as it significantly impacts their chances of success. A favorable ecosystem allows founders to connect with high-quality opportunities and stakeholders on a daily basis, boosting their growth potential.
To ensure reliable results, StartupBlink collaborates and analyzes data from thousands of startups through this partnership, StartupBlink offers valuable insights into innovation trends and frequencies across ecosystems worldwide. Additionally, Crunchbase's funding data is leveraged to continuously enhance StartupBlink's database, providing crucial information on startup exits.
The GSEI rankings are based on three key factors: quantity, quality, and the startup business environment. The quantity score evaluates the activity level within an ecosystem, measuring stakeholder engagement. The quality score assesses the overall caliber of each startup ecosystem.
Lastly, the startup business environment score considers country-level parameters, such as national infrastructure, policies, and legislation, which influence all cities within a nation.
Examining the top countries in the global startup ecosystem, we find relative stability in their rankings throughout the year. The United States maintains its leadership position, with the highest number of cities ranked in the global top 1,000.
The United Kingdom holds its second position, leading Israel, which ranks third. While the U.K. maintains its lead, the gap between these two countries has slightly narrowed. Notably, apart from the U.S., the U.K. is the only country represented by more than 50 cities in the GSEI. Israel, which was close to surpassing the U.K. in 2021, now faces a larger gap between the two countries.
Sweden continues to excel as the top-ranked European Union country for the second year in a row, surpassing Germany on a global scale. This consistent success showcases Sweden's strong startup ecosystem.
In terms of startup funding deals, there has been a slight decrease of around 3% compared to the previous year. Late-stage startups have been most affected, experiencing a significant decline in volume with a year-over-year fall of 43%.
Despite the slight decrease, North American startups remain dominant in the global ecosystem, capturing 49.9% of the total global funding. While this is slightly lower than the previous year's 52%, it still demonstrates their strong position. On the other hand, the Asia-Pacific region has witnessed a small increase, accounting for 24.5% of the funding compared to the previous year's 24%. Within the region, India and China attract more than 60% of regional investments.
Europe has also experienced a modest rise in its funding share, increasing from 18.3% in the previous year to 19.7% this year. Despite the presence of numerous active and successful ecosystems in Europe, investors still perceive greater potential in North America and the Asia-Pacific region, resulting in a larger portion of startup funding flowing to these regions.
In conclusion, the 2023 Global Startup Ecosystem Index sheds light on the key trends in the global startup landscape. It emphasizes the significance of choosing the right ecosystem for startups and provides valuable insights into the performance and potential of various countries and regions. By staying informed about these trends, policymakers, founders, and investors can make more informed decisions and leverage the opportunities available in the dynamic world of startups.