Last year, TechCrunch reported on an ambitious project called “Startup Genome” created to take a comprehensive, data-driven look into what makes tech startups successful. This week, TechCrunch reports that the team have begun to uncover valuable insights into the world’s startup ecosystems, starting with a comparison of the three most active startup hubs: Silicon Valley, New York City, and London. The full list of insights is here. Some of the most interesting include:
Size: Silicon Valley continues to lead the way, but the gap is growing smaller. Silicon Valley’s ecosystem is currently 3-times bigger than New York City and 4.5-times bigger than London. Success Rate: Proportionally, the Silicon Valley ecosystem has 22% more companies in the “scale stage” than in NYC and 54% more than in London. Availability of Capital: Silicon Valley startups raise 2-3 times more money in the first three stages of development. But interestingly in the scale stage, compared to Silicon Valley, New York City startups raise 27% more money and London startups 30% more money. Job Creation: In the Efficiency and Scale stages, Silicon Valley startups create 11% more jobs than NYC startups, and 38% more jobs than London startups. Risk Profile: The number of high risk companies decreases steadily through the startup lifecycle, except in NYC which has 4 times more high risk companies in the scale stage than Silicon Valley. Revenue Streams: Subscription is the most popular revenue stream everywhere. Mentorship: Silicon Valley and NYC reportedly have more helpful mentors than the London ecosystem.
And the dynamics of the Founding Teams were quite different: Silicon Valley founding teams are 34% more likely to be technical heavy than founding teams from NYC. Whereas NYC founding teams are almost 2x as likely to be business heavy than Silicon Valley founding teams. London founders are more educated, most having a masters degree. NYC has almost double the female founders of Silicon Valley and London. Silicon Valley founders are more experienced having, on average, started almost twice as many startups as founders from NYC and London. Silicon Valley has 30% more founders that want to change the world than London or New York.
Startup Genome is also offering a new ranking for the world’s top startup ecosystems, ordered by their average throughput. The top 10 is a diverse line-up: 1. Silicon Valley, 2. New York City, 3. London, 4. Toronto, 5. Tel Aviv, 6. Los Angeles, 7. Singapore, 8. Sao Paulo, 9. Bangalore and 10. Moscow. More on the project’s blog here.