London, Mumbai and Bangalore have emerged as the top startup hubs across the world, according to Startup Genome for its annual Global Startup Ecosystem Report 2021. London have maintained the second rank with New York for the second consecutive year. From India, Bangalore is featured at top 30 global tech hubs and the national capital Delhi featured under top 40, ranked 36th. In another report of 2018, Bangalore emerged as the third city with maximum number of startups. And now in 2021, this wave of startup ecosystem seems to be sweeping across the length and breadth of the country.
In the category of emerging ecosystem, Mumbai maintained its first position outperforming other fast-growing ecosystems in areas of funding, performance, market research, and talent. This report came at the same time when a well known tech event known as London Tech Week was going on. The report ranks the leading 140 startups ecosystem based on seven success factors including performances, talent and connectedness.
According to the report, the findings revealed that London is the most attractive destination to set up a tech startup outside of Silicon Valley. The city has an overall startup ecosystem value of USD 142.7 bln.
London has risen up the league table in the last few years, climbing from number eight in 2012 when the first rankings were released to number two in 2020. Silicon Valley held onto the top spot this year while Beijing and Boston came in fourth and fifth respectively.
Indian startup ecosystem unbeatable growth can be found in the numbers put in the report, the research shows that Indian startups raised USD 12.1 billion in the first half of this year. As of August 2021, India has produced 24 unicorns in 2021, including 6 in just 4 days in April.
In India, Bengaluru and the surrounding state of Karnataka is also the world’s 4th largest technology and innovation cluster and home to more than 400+ global R & D centres. Alongside Mumbai, a number of other Indian hubs made it into the ‘Top 100 Emerging Ecosystems’ list, including Chennai, Pune and Hyderabad.
As per the report, The report found London as one of the best cities in the world for access to funding and quality and activity in the investment ecosystem. This gets reflected in the numbers, the city has already seen record levels of VC tech investment this year, with the UK capital’s tech startups receiving USD 13.3bn in the first seven months (January to July), more than the USD 10.9bn raised in the whole of 2020.
According to the report, the impressive start of London is attributed to the major funding rounds for Revolution (USD 800m), Checkout.com (USD 450m) and Hopin (USD 400m). Bangalore’s ranking was also boosted by healthy access to growth capital, demonstrated by recent large funding rounds from food delivery platform Swiggy (USD 1.3bn), social media company ShareChat (USD 502m) and edtech firm Byju (USD 460m).
As per the research, the startups in London have access to deeper pools of capital, with an average seed round of USD 653k, ahead of the global average of USD 494k. London is currently home to over 1,370 VC firms – more than any other European city, providing access to a vast network of investors and a depth of capital in the ecosystem.
The report mentions that London is also recognised for its world class talent pool, with the city ranking highly across the board for quality and access to Tech and Life Sciences talent. With four of the world’s top ten universities located in or close to London, the city is home to 484k software developers as well as a high number of Life Sciences-focused universities and degree programmes.