BENGALURU: Bengaluru was ranked 23rd among the top 30 global startup ecosystems by policy advisory and research organisation Startup Genome’s The Global Startup Ecosystem Report 2021.
The city was at No. 26 in the 2020 rankings. It improved its ratings in areas like funding, connectedness, and knowledge. Delhi was among the runners’ up, with a rank of 36, buoyed mainly by funding. Mumbai was No. 1 among the Emerging Ecosystems.
Silicon Valley is ranked No. 1, followed by New York City and London, which for two consecutive years have tied for the No. 2 spot, Beijing is at No. 4 and Boston at No. 5.
Bengaluru has an ecosystem value of $53 billion. This is calculated as the total exit valuation and startup valuations over two-and-a-half-years (ending June 2020).
The global average is $10.5 billion. The city, home to over 4,000 startups, has raised $1.4 billion in early-stage funding (sum of all seed and series A investments in 2018, 2019, and the first half of 2020), against a global average of $431 million.
The average salary for a software engineer in the city is $13,000, compared to a global average of $42,100. The average software engineer’s salary in Silicon Valley is $119,000.
Indian startups raised $12.1 billion in the first half of this year. As of August, India had spawned 24 unicorns in 2021—including six in just four days in April.
Startup Genome’s report showed that the global startup economy is worth over $3.8 trillion in ecosystem value, more than the individual GDP of most G7 economies, not including the value of exits prior to 2018.
North America continues to dominate the global rankings, with 50% of the Top 30 ecosystems coming from this region, followed by Asia with 27% and Europe with 17%.
In the category called Emerging Ecosystems, the top 100 are collectively worth over $540 billion in ecosystem value, which is a 55% increase from last year.
Among Emerging Ecosystems, Mumbai outperformed all others in performance, funding, experience, and talent.
The Top 100 Emerging Ecosystems created 124 billion-dollar startups in the period between 2011 and 2020, with 53 ecosystems contributing the majority. MENA (Middle East and North Africa) started producing unicorns in 2016 and Latin America in 2018.
Asia is currently in the lead. It accounts for 36% of the billion-dollar club, followed by North America with 30% and Europe with 27%. Chennai, Pune, and Hyderabad figure in the top 100 emerging ecosystems.
The top 10 by ecosystem value in the emerging segment were led by Detroit with $37.2 billion, followed by Bucharest and Jakarta at $35.3 billion and $34 billion respectively. Mumbai took the eighth position at $15.3 billion.
Deep Tech (advanced manufacturing & robotics, blockchain, agtech & new food, AI & big data) remains the fastest-growing group globally.
Fintech also has experienced substantial growth in the last five years. The report said that edtech and gaming have experienced an increase in Series A funding that returned them to the mature phase.