Silicon Valley. The heart of tech, innovation, and entrepreneurship. The Startup Hub of the world. The playground for accelerators and incubators. Millions if not tens of millions everyday in announced funding. Silicon Valley is the epicenter of today’s startup ecosystem.
However, with rapid globalization, talent growth and emerging markets, there has been growth in the startup ecosystem globally across specific regions.
So what makes a Region a startup hub?
Regions that are rapidly becoming startup hubs typically carry five characteristics. Those being:
- Talent: Access to a top network pool of individuals, usually working in Tech, Healthcare and Science.
- Price: Salaries of workers.
- Innovation: The capability and history of the region regarding “breakthrough ideas.”
- Infrastructure: This includes access to the internet, macro-economies and more which allows companies to truly access the global markets.
- Capital (Financing): Amount of money available for investments and funding options.
Now that we have the five characteristics laid out, let's look at emerging startup hubs by region and see what makes them special.
Apart from Silicon Valley, North America houses some of the best startup markets in the world. Both from Canada and America, cities drastically range from expertise, industry knowledge and more!
In Canada specifically, cities like Toronto, Vancouver and Montreal are the major metropolitan hubs for startup innovation. Toronto itself is one of the fastest-growing and densest innovation hubs of the world. In the span of five years, from 2013 to 2018, the Toronto area created more jobs in the technology industry than New York, Boston and Seattle combined!
As for the rest of America, cities like Austin, Seattle, Chicago, Boston and NYC are always listed as top destinations for startup founders! With diversity, access to capital and access to talent, these cities are at the echelon of startup success.
Looking at South America, the fast-paced city of São Paulo Brazil is home to nearly 45 million people. With giant tech companies like Google and Uber already planting offices in the city, Brazil’s state is rapidly growing in the startup industry.
As for Oceania, it's none other than Australia’s “fake” capital city, Sydney. The most populous city in the land under, Sydney boasts incredible views but more importantly, infrastructure and emerging markets as well as globalization. The startup hub in Sydney is rooted in its tight-knit tech community.
With the highest Human Development Index score, Europe is situated as the leader in various sectors. Some key cities of note are London, Berlin, Amsterdam and Paris. London itself remains at the tech core for Europe, as startups were valued at an astronomical $47 billion.
One of the most dynamic growing regions is the Middle East. Specifically, Tel Aviv. Located at the heart of Israel, the country’s capital houses the nation's largest startup hub. Similar to South America, established giants like Apple and Amazon already have their offices in the area to access experienced talent and R&D.
Finally, Asia, home to over half the world’s population and hub to countless emerging markets like China, Singapore and India. With Singapore, Bangalore and Beijing raking in billions from VC funding every year, these areas are amongst the strongest startup communities in the world.
With countless developing startup innovation hubs around the world, Silicon Valley must remain at the forefront and continually develop in order to attract top talent.