Total Venture Capital Investment Rose 95% in Top 20 Startup Ecosystems from 2013-2014, New Report Shows
Total venture capital investment rose 95 percent in 20 of the world’s top startup ecosystems from 2013-2014, according to The Global Startup Ecosystem Ranking 2015 – a 160-report from Compass, formerly Startup Genome. Compass researchers also found that the global startup ecosystem landscape is maturing rapidly with non-Silicon Valley ecosystems capturing 14 percent more of the exit value pie in three years (2012-2014). In 2014, non-Silicon Valley startup ecosystems captured 59 percent of the value of all startup exits, up from approximately 45 percent in 2012. The report includes several recommendations for policymakers and investors to support or grow their region’s startup ecosystem including:
- Create policy that minimizes the friction of incoming flow of foreign capital and foreign talent.
- Simplify regulations for startups that will allow for low legal costs of startup formation, startup bankruptcy, and liquidation on startup exit.
- Differentiate your startup ecosystem and accentuate its strengths by either focusing on a stage of the startup lifecycle, a particular market, or product type.
The report also includes a five component index, which ranks the top 20 startup ecosystems around the world. The study was compiled using data from 11,000 surveys completed by startups, investors and other stakeholders as well as 200 interviews with entrepreneurs and local experts from 25 countries. The report is a follow-up to a report that was released in November 2012. Read the release…