The Global Startup Ecosystem Ranking 2015

Foreword by Steve Blank The Startup Ecosystem Report Series Compass.co (formerly Startup Genome) with the support of Crunchbase
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
Silicon Valley Startup North America Avg Avg Silicon Valley Silicon Valley North Valley North America Ecosystem
Foreword by Steve Blank The Startup Ecosystem Report Series Compass.co (formerly Startup Genome) with the support of Crunchbase
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
Silicon Valley Startup North America Avg Avg Silicon Valley Silicon Valley North Valley North America Ecosystem
<p>The Global
Startup Ecosystem 
Ranking 2015
*excluding China, South Korea and Japan
*
Foreword by Steve Blank
The Startup Ecosystem Report Series
Compass.co (formerly Startup Genome)
with the support of Crunchbase
August 2015 Version 1.2
with
from
by
2
 
Contents
3 
Foreword
 
Mene, mene, tekel, upharsin - The Writing is On the Wall
5 
Startup Revolution Series
6 
The Great Transition: Industrial to Information Revolution
8 
The Decline of the Blue Chip
12 
The Rise of the Startup
16 
The Critical Role of the Startup Ecosystem
19 
Introduction
22 
The Global Startup Ecosystem Ranking
28 
Top 20 Deep Dives
32 
Silicon Valley  
37 New York   
lected Findings
42 
Los Angeles  
Se 
#lected Findings
47 
Boston 
 
elected Findings
52 
Tel Aviv 
 
 
Selected Findings
57 
LondonK	
	
ey	findings
62 
Chicagoy	fi		
ndings
67 
Seattleey	fi		
ndings
72 Berlinfindin	
gs
77 
Singaporefin	
dings
82 
Parisdings  
87 
Sao Paulondin gs
92 Moscowdings 
97 
Austinings  
102 Bangalorending s
107 Sydney 
 
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written	authorization	of	Compass.	This	material	has	been	prepared	for	general	informational	purposes	only	and	is	not	intended	to	be	relied	upon	as	professional	advice.	Please	refer	to	your	advisors	for	specific	advice.
112 Torontoindings 
117 Vancouverndings 
122 Amsterdamngs 
127 Montreal   
 
 
gs 
 
132 Feature: Hong Kong
134 Feature: Kuala Lumpur
139 Feature: Ecosystem Canvas
cted Findings
142 Methodology
143 Overview
143 1. Stakeholder Objectives
143 2. Data Sources
143	 3.	Definitions	Used
143 4. Ranking Methodology
144 5. Changes from 2012 
144 6. Index Details
145 7. Growth Index
146 Sources
147 Literature
148 Primary Data Sources
148 Secondary Data Sources
150 Acknowledgment And Partners
151 Authors
151 Project Team
151 Academic Contributors
151 Survey Participants and Interviewees
154 Startup Package Partners
155 Survey Promotion Collaborators 
About Compass 
Compass.co (formerly Startup Genome)
We came together for one reason: 
To radically improve the success rate of businesses.
With 34,000 signups, Compass is the leading solution for 
automated management reports and benchmarks for small 
and medium-sized online businesses. 
Compass is made for executives who seek visibility on how 
to improve their ROI without having to rely on analysts or 
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You	get	your	first	interactive	report	in	less	than	2	minutes	after	
signing up. Simply connect the tools you use to manage your 
business and Compass will create your tailored report. 
 
Why we built Compass: 
 
In our research as part of the Startup Genome Project on 
the	success	and	failure	of	young	firms,	we	found	that	most	
businesses fail not because of competition, but rather due 
to self destruction. Or in other words, they fail because they 
execute on the wrong things.
In our search for scalable solutions to this problem we learned 
that peer benchmarks and industry data were one of the most 
effective	ways	to	help	businesses	focus	on	executing	what	
matters most.
3
 
Mene, mene, 
tekel, upharsin - 
The Writing is On 
the Wall
50 years ago Alfred DuPont Chandler, a business historian at 
Harvard, wrote Strategy and Structure: Chapters in the History 
of the American Industrial Enterprise. The book chronicled the 
transformation of four American companies,  DuPont, Standard 
Oil,	General	Motors,	and	Sears	in	the	first	decades	of	the	20th	
century. It charted how they grappled with a series of strategic 
changes; expanded markets, vast geographic distances, multiple 
customer	segments,	diversified	product	lines,	and	so	on.	These	
four	 companies	 were	 the	 first	 to	 realize	 that	 their	 existing	
centralized functional organizations  organized into sales, 
marketing, engineering and manufacturing departments  were 
inadequate to deal with these strategic shifts.
4
 
In response to the changing strategic needs, CEOs and their 
boards began to experiment with new corporate organizational 
structures. Eventually they shifted from functional organizations 
into organizations comprising vertically integrated divisions. The 
corporate	 central	 office	 provided	 planning	 and	 coordination,	
while each division contained all the necessary resources and 
functions	and	is	individually	responsible	for	profit	and	loss.	Forty	
years	 later,	 the	 multi-division	 firm	 was	 the	 standard	 form	 of	
organization	and	management	for	complex	industrial	firms.
Companies in the 21st century are dealing with strategic 
issues as large as those in the beginning of the 20th. The old 
rules	 for	corporate	growth	and	profit	no	 longer	apply.	We	see	
the	symptoms	of	 this	everywhere,	particularly	 in	declining	firm	
performance and declining Return On Assets (ROA). In fact, the 
average life of a company on the S&P 500 has declined to about 
15 years from 65 since the 1920s.
The problems companies were trying to solve in the early 20th 
century were how to manage an enterprise across vast geographic 
distances, how to build and manage multiple customer segments, 
and	 how	 to	 build	 brands	 to	 engage	 the	 newly	 emerging	 U.S.	
middle class. In the 21st century the problems are now inverted. 
The	world	is	not	only	flat	but	it's	instantaneous.	Consumers	are	
connected. Entrepreneurs are connected. The cost of entry for 
most new ventures has plummeted. The speed to reach new 
users is growing in record and accelerating time. Competition 
comes not only from companies in local, regional or national 
markets, innovation now comes from everywhere on earth. The 
Internet accessible to a wired planet means most markets are 
being re-imagined as part of a connected world. This relentless 
wave of disruptive innovation is marching through not only 
technology industries such as computers and communications, 
but is destroying industries thought of as forever stable and 
predictable: newspapers, entertainment, energy, healthcare, 
education, construction, 
transportation, retail commerce, 
finance,	and	even	governments	themselves.
Most of the innovation and disruption are coming from new 
entrants  young, fearless, and not afraid to take on the status 
quo.
So now what? Existing corporate strategy and structures have 
proven unequal to adapt to this changing economy.
Every existing company will have to deal with this common 
economic	problem:	how	do	you	build	an	effective	organization	
in a time of continuous disruption  one where the old rules 
and structures no longer work. Companies will need to adapt 
a new strategy that embraces disruption, sustaining innovation, 
and execution. Crucially, they need to build new organizational 
structures that embrace those changes.
The democratization of entrepreneurship from Silicon Valley 
and from startup ecosystems all over the world is creating new 
strategies and structures for that disruption and innovation. It is 
the strategy lessons from startups that will light the way for the 
massive restructuring of all corporate structures by the middle 
of this century. Only then will we look back and realize that we 
were just beginning the economic revolution of the wired world.
Steve Blank
Only then will we look back and realize 
that we were just beginning the economic 
revolution of the wired world
STARTUP	
REVOLUTION	
SERIES
               
Part 1    The Great Transition: Industrial to Information Revolution
Part 2    The Decline of the Blue Chip
Part 3    The Rise of the Startup
Part 4    The Critical Role of the Startup Ecosystem
6
 
The Startup Revolution Series |1
The Great Transition: 
Industrial to Information 
Revolution
Have we reached a critical tipping point in the transition between 
the	Industrial	Era	and	the	Information	Era?	It	is	difficult	to	define	
a precise moment when major economic epochs swap places of 
relative dominance, but there is an increasing amount of evidence 
that	points	to	a	significant	decline	in	businesses	founded	in	the	
Industrial Era or which operate under Industrial Era principles. At 
the same time, one can hardly fail to notice the explosive rise of 
the Information Era.
If we look at the performance of the types of companies that have 
been the lifeblood of the economy for several centuries, we see 
worrisome trends. The Shift Index1, by the Deloitte Center for the 
Edge, notes a 75% decline in Return on Asset (ROA) performance 
for	U.S.	 companies	 over	 the	past	 45	 years,	 despite	 increasing	
labor productivity over the same time frame. Meanwhile, the 
success of market leaders appears to be increasingly short lived, 
with the length of time a company remains on S&P 500 declining 
by almost 80%.
Over	the	last	15	years,	a	significant	portion	of	job	and	economic	
growth	 in	 the	 U.S.	 has	 come	 from	 high-growth	 technology	
companies such as Apple, Amazon, Google, Salesforce, VMware, 
Facebook, Twitter, Groupon, and Zynga. And while Apple was 
officially	 incorporated	 in	 1977,	 it	 was	 only	 when	 Steve	 Jobs	
returned to helm in 1997 that the company reinvented itself 
using the process of what one might call disruptive technology 
intrapreneurship, which later led to the development of the 
iPhone, iPad, and their corresponding suite of app ecosystems. 
These new product innovations transformed Apple from a 
struggling organization to the company with the largest public 
market cap on the planetquadrupling its value in just the past 
five	years	alone.
1 Hagel, J., Brown, J.S. & Davidson, L. (2009)
Consider	 this:	 The	 entire	 U.S.	 GDP	 is	 $15	 trillion.	 Collectively,	
these nine big-hitters of the tech world that barely existed a 
decade and a half ago have created almost a trillion dollars in new 
wealth. Will the trend of multi-billion dollar tech startups that have 
a	disproportionate	effect	on	the	needle	of	the	global	economy	
continue? As we will discuss in the following set of essays, many 
signs	point	to	a	definitive	yes.	The	virtual	explosion	of	startups	
below the radar is so substantial, The Economist recently likened 
it to the Cambrian moment of species evolution2.
Humanity	doesn't	see	transitions	between	major	economic	eras	
very often, but when they come, every aspect of society gets 
reinvented:	government,	business,	finance,	education,	medicine,	
energy, technology, art, and science all get upgraded. In fact, 
most historians would argue there have only been three such 
transitions before in human history: 1. Foraging to horticulture 
2. Horticulture to agriculture 3. Agriculture to industrialization. 
The Industrial Revolution was the last great full spectrum societal 
transformation,	 and	 the	 Scientific	 Enlightenment	 that	 ensued	
gave rise to modernity. With two billion broadband Internet 
users and billions of smartphones now entering circulation, 
the necessary tools and infrastructure are in place for the 
Information Age to burst into full bloom, moving beyond the 
confines	of	just	the	technology	world	to	transform	all	aspects	of	
society. Therefore, the role of technology entrepreneurship in our 
global economy is now more important than ever. Increasingly, 
it is becoming clear that technology entrepreneurship will be 
the primary growth engine of this new economic era. 
Having gone through a fairly severe dot com boom and bust 
cycle	 only	 fifteen	 years	 ago,	 it	 is	 understandable	 that	 many	
people imagine a similar fate for the current tech boom. Yet 
while it is human nature to expect the future to look like a 
2 Siegele, L. (2014)
7
 
linear progression of the past, that thinking does not produce 
good predictions when the pace of change is accelerating, and 
is especially inaccurate in the midst of epochal transitions. So 
rather than seeing the recent boom as a sign of a coming bust, 
we see it as a harbinger of long-term exponential wealth creation 
over the comings decades.
Yet making the case that exponential wealth creation is on 
the horizon should not produce unbridled optimism. The 
development from one era to the next requires dangerous 
periods of transition, where a society can either slide into turmoil 
or rise to the occasion, using foresight to summon fortitude and 
grace. We will have to be thoughtful but bold about how we shed 
our industrial skinand the institutions, business, jobs, culture, 
and traditions that have come with it.
Undeniably,	 this	kind	of	change	 is	not	an	easy	 thing.	Adaption	
requires the release of much of what was previously familiar, 
comfortable, and secure. But if we can adopt new skills, beliefs, 
and values appropriate for the new Information Era, we can reap 
the prosperous potential the Information Era would like to sow. 
The Industrial Revolution brought wealth and prosperity unseen 
before in the likes of human history. In 1750, the total wealth of the 
world	sat	at	an	estimated	$126	billion	dollars.	Today	the	world's	
wealth	is	calculated	at	over	$70	trillion.	But	the	hard	truth	is	that	
the Industrial Era strategies, mindsets, and behaviors that got us 
here will no longer take us much further. To successfully make 
the transition to the Information Era, much of the socioeconomic 
fabric of society needs to be reinvented. If we do not adapt and 
release much of our now expiring industrial era mindsets and 
practices, then the dark days of the 2008 economic recession 
may return. To avoid this fate, we must let go of the past and 
engage with the future to ensure that the greatest era in human 
history is closely in front of us.
This Startup Ecosystem Report will explore why we believe 
technology startups are the primary growth engine of the 
Information Era and how nurturing startup ecosystems can keep 
the world on a path to greater prosperity.
Together we can lay the groundwork for a successful transition 
into the new socioeconomic era of the Information Age.
Let's	dig	in.
8
 
The Startup Revolution Series |2
The Decline 
of the Blue Chip
Humanity may be approachingor have already passedthe 
tipping point between the Industrial Era and the Information 
Era. Now we will dive deeper into why much of the old business 
and economic wisdom no longer seems to apply with blue chip 
companies becoming far from the reliable investments they used 
to be.
Let's	start	with	the	good	news.
Since 1965, labor productivity has more than doubled. Economists 
define	the	inputs	to	this	calculation	as	number	of	hours	worked	
and the outputs as industry growth. In some industries, such 
as technology and telecommunications, labor productivity has 
grown by more than 800%. Productivity is usually considered a 
key performance indicator for economic growth, so with all the 
productivity gains companies should be growing faster than ever, 
right?1
Exhibit: Labor Productivity (1965-2010)
Source: Compustat, Deloitte analysis
1 Hagel, J., Brown, J.S. & Davidson, L. (2009)
Not so fast.
During the same time period, companies experienced a 75% 
decline in Return on Assets (ROA) and a decline of almost 80% in 
the length of time an S&P 500 company could expect to remain 
on that list.
Better productivity, worse results. What is going on behind the 
scenes to lead to such diverging indicators?
For answers, we turn to the monumental Shift Index, released in 
2009, by John Hagel, John Seely Brown, and Lang Davidson of the 
Deloitte Center for the Edge, which documents the long-term 
decline	of	business	profitability.	While	the	report	focused	solely	
on American companies due to the availability of data, it would 
be	a	mistake	to	assume	their	conclusions	are	purely	U.S.-based.	
Rather,	we	believe	their	findings	are	generalizable	to	Industrial	
Era industries all around the world.2
They found two clear trends that cannot be ignored: declining 
company performance and an increasing topple rate from 
positions	of	market	dominance.	First	let's	look	at	"the	what,"	then	
we'll	explore	"the	why".
Declining company performance
While there are a number of ways to measure growth metrics 
(such as return on invested capital), the Shift Index authors 
focused on Return on Assets, or ROA, as it measures how much 
a company is able to do with what is hasin other words, how 
much	profit	it	can	make	by	turning	its	inputs	into	outputs.
2 Hagel, J., Brown, J.S. & Davidson, L. (2009)
9
 
When they reviewed data for the past 45 years, the authors and 
the	community	at	large	were	equally	surprised	to	find	a	drop	of	
75%. And while recessions in 2001 and 2008 clearly added to 
poor performance, the graphed results show a long-term trend 
that is as challenging to explain away as the result of anomalies.3
At the same time, anyone who has spent much time with statistics 
knows that averages can provide useful high-level perspective, 
but can also skew conclusions if a small number of data points 
vary widely from the rest. So to gain a sharper perspective, the 
authors separated the companies into performance quartiles. The 
results	from	The	Shift	Index,	showed	that	"the	ROA	Performance	
Gap between winners and losers has increased over time, with 
the winners barely maintaining previous performance levels, 
and	losers	experiencing	rapid	deterioration	in	performance."4 In 
other words, not only were poor performers dropping rapidly, 
even the best companies were only stagnating.
3 Hagel, J., Brown, J.S. & Davidson, L. (2009)
4 ibidem
The	 authors	 surmised,	 "after	 questioning	 and	 re-questioning	
our data and our assumptions, we came back to the same 
conclusions. The downward trend in company performance is 
accurate, the assumptions are reasonable, and further analysis 
confirms	these	persistent	trends."
Increasing Topple Rate
In addition to the declining performance of the blue chip category, 
it also appears the success of market leaders is increasingly 
short-lived.
In	the	following	graph,	topple	rate	is	defined	as	the	propensity	of	
market	leaders	on	the	S&P	500	list	to	"topple"	from	their	leading	
rank,	and	thus	fall	off	the	list.	The	authors	describe	the	meaning	
of	this	dynamic	as	such:	"Back	in	the	1930's,	a	company	coming	
on the S&P 500 list could expect to remain there for 65 years. 
In recent years, the average life-time of a company on the S&P 
500	has	declined	to	about	15	years,	a	decline	of	almost	80%."5
So	those	at	the	top	aren't	staying	there	long.	What	about	those	
at the bottom of the market?
"The	 churn	 for	 the	 lowest	 decile	 (0-10th	 percentile)	 has	 been	
declining,	implying	that	fewer	firms	are	performing	poorly	enough	
to sink to the bottom, but those that do are experiencing long, 
drawn-out	declines."6 Another way of interpreting this information 
might be that now that the ground Industrial Era economic 
conditions have shifted, businesses that were adapted to those 
conditions do not know how to adapt to the new conditions of 
the Information Era, and thus await a languishing future to be 
followed soon by death.
5 ibidem
6 Hagel, J., Brown, J.S. & Davidson, L. (2009)
Exhibit: Economy-wide Asset Profitability (1965-2008)
Source: Compustat, Deloitte analysis
Exhibit: Economy-wide Asset Profitability quartile (1965-2008)
Source: Compustat, Deloitte analysis
Exhibit: Economy-wide Firm Topple Rate (1965-2008)
Source:	Thomas	C.Powell	and	Reinhart,	"Rank	friction:	an	ordinal	approach	
to	persistent	profitability."	Compustat,	Deloitte	analysis
10
 
Why Is Performance Declining?
Now that we understand more about the decline that is taking 
place, the most important question to answer is why. It would 
seem paradoxicalincreasing productivity coinciding with 
declining	results,	but	there	is	an	answer.	In	a	word,	it's	pressure.	
During the Industrial Era, companies were somewhat insulated 
by low levels of competition, information obscurity, and growing 
consumption. But the Information Age has made those barriers 
more obsolete than castle walls after the introduction of 
gunpowder.
Let's	 look	at	these	three	new	competitive	pressures	they	must	
face in more detail.
Factor 1: Greater competition
Competitive intensity has more than doubled during the last 40 
yearsas measured by market concentrationdue to falling 
barriers to entry and economic liberalization.
Falling	barriers	to	entry:	It	used	to	be	far	more	difficult	to	start	
a company. Product production was very capital intensive 
and	 slow,	 customers	were	hard	 to	 find	 and	 also	 expensive	 to	
reach.	 Today's	 technology	 means	 a	 business	 can	 be	 started	
inexpensively and quickly with cloud-based services, freelance 
talent, and plug and play technologies. This equates to more 
entrants, and consequently, a dramatic increase in competitive 
intensity.
Economic liberalization: We live in an increasingly globalized 
world, where global communication and shipping is exponentially 
easier than it at any other time in human history. In many 
instances, once a business is up and running, global markets 
can be reached overnight. Companies no longer compete solely 
in	their	domestic	geography,	but	against	firms	from	all	over	the	
world.
Factor 2: Information transparency
The world has changed so completely it can be hard to recall 
the	"quaint"	days	when	most	of	what	we	knew	about	a	product	
was from a TV commercial or what the local salesman had to 
tell us. These were the glory days of branding, when a company 
could	define	 its	 own	 image,	 irrespective	 of	 critical	 review,	 and	
then communicate that identity with clever marketing as long as 
they had the money to spend on ads.
But this advantage of large companies has disappeared in the 
wake	of	information	transparency.	Consumers	can	find	the	best	
price	for	a	flight	on	Kayak	and	the	most	inexpensive	product	on	
Google. Increasingly, pricing information is available real-time 
at	 the	point	of	purchase,	 lowering	prices	and	squeezing	profit	
margins.	They	can	also	find	the	highest	rated	service	providers	
on Yelp and best rated products on Amazon based on the 
crowdsourced intelligence of hundreds or thousands of fellow 
consumers.	This	same	transparency	applies	to	B2B	offerings	as	
well, with price and quality comparison tools available for almost 
every	industry.	If	there	is	a	niche	left	where	transparency	doesn't	
exist,	you	can	be	sure	someone	is	working	on	a	solution	to	fill	the	
gap.
Branding is far from useless today, but it is no longer the golden 
goose it once was. The Shift Index found 47% of people strongly 
agree	there	isn't	much	cost	associated	with	switching	brands.
A	simple	way	of	summing	up	the	effect	of	information	transparency	
might be, that in the Industrial Era, sales & marketing were arguably 
the most important functions of a successful organization. Yet in 
the Information Era, design & engineering reign supreme as the 
superior product is now far more likely to win.
Factor 3: Declining consumption
After a long period of post-war consumption increase, people are 
buying fewer new goods than ever before. Not only did the 2008 
economic downturn thin the pocketbooks of the middle class, 
consumers are now more fully embracing engaging experiences 
and	 lasting	 relationships	 as	 reliable	 sources	 of	 fulfillment,	
decreasing the demand of shiny new goods that promised 
happiness but consistently failed to deliver.
Consumers	 are	 also	 increasingly	 selling	 or	 renting	 their	 fixed	
assets	when	they	aren't	being	used.	Craigslist	and	eBay	created	
a thriving used-goods marketplace, ZipCar showed the world 
that	owning	a	car	wasn't	always	necessary,	and	AirBnB	built	an	
entire industry out of previously unused guest bedrooms. These 
trends are supported not just by frugality, but an increasingly 
environmentally conscious population that wants to minimize 
their impact by reusing what has already been produced.
Exhibit: Churn Rate in 90th-100th Decile (1967-2006)
Source: Compustat, Deloitte analysis
11
 
More dollars in the sharing or renting economy means fewer 
dollars in the traditional producer-consumer marketplace, and 
many of the companies thriving today are facilitators of existing 
physical assets rather than producers of new ones.
How can blue chips respond?
There	are	generally	two	main	levers	to	increasing	profitability
either increase revenue or decrease costs. Many business 
schools have trained executives in the science of cost cutting 
efficiency.	Think	just-in-time	manufacturing,	workforce	reduction,	
and	economies	of	scale.	This	worked	very	well	as	a	profitability	
lever	 for	 decades,	 until	 the	 point	 where	 efficiency	 reached	 a	
critical point of diminishing returns, competition still continued to 
increase.	Essentially,	you	can't	cost-cut	your	way	to	profitability	ad	
infinitum,	at	some	point	your	cost	cutting	efforts	begin	degrading	
the essential qualities of the organization itself.
What	about	the	other	 lever	of	profitability,	 increased	revenue?	
The traditional Industrial Era approach is more and better 
marketing. Focus on marketing can create a spike in revenue 
if this area is unoptimized or when new Information Era tools 
like segmentation and analytics suites are developed that allow 
further	optimization.	Marketing	is	powerful,	but	it	isn't	the	silver	
bullet either. Marketing approaches can quickly reach a point of 
diminishing returns, just like the strategy of pursuing cost cutting 
efficiencies.
If the traditional Industrial Era approach to decreasing costs and 
the traditional approach to increasing revenue have both reached 
a point of diminishing returns, what then is the solution? The 
answer is disruptive innovation; achieved through the creation 
of new Information Era products and services. 
Yet, while this solution provides plenty of hope for the global 
economy, it provides plenty of gloom for Blue Chip Industrial 
Era incumbents. Information Era disruptive innovation requires 
completely new ways of working, new culture, new tools, new 
economics,	 new	 everything.	Who	 is	 figuring	 out	 how	 to	 adapt	
and succeed in this brave new world better than anyone else? 
Technology startups.
12
 
The Startup Revolution Series |3
The Rise of the Startup
  
This	is	the	third	essay	in	the	"Startup	Revolution	Series."	 In	the	
first	 part,	 we	 suggested	 humanity	 may	 be	 approachingor	
have already passedthe tipping point between the Industrial 
and Information Eras. In the second, we provided data that 
demonstrates fairly conclusively that over the last 50 years, 
Industrial	Era	focused	blue	chip	companies	have	lost	significant	
value and much of their potential for renewed growth.
So what is rising in their place? This post will focus on the 
Information Era businesses that are best adapted to this new 
Darwinian business environment: Startups.
The Startup Explosion
So many startups have burst on the global scene that The 
Economist likened the entrepreneurial explosion to the Cambrian 
Explosion	 in	 earth's	 biological	 history.	 High-growth	 technology	
companies have penetrated nearly every area of society, and 
for every declining or transforming Industrial Era company, one 
can	usually	find	an	emergent	Information	Era	replacementor	a	
suite	of	them.	As	Marc	Andreessen	famously	put	it:	"Software	is	
eating	the	world."1
The following is a list of some very successful Information Era 
companies that have succeeded by upgrading Industrial Era 
products and processes for the Information Era.
 Kodak  Instagram (Photography)
 Borders Books  Amazon (Books)
 Tower Records  Apple, Spotify (Music) 
 Hotel Chains  Airbnb (Travel)
1 Andreessen, M. (2011)
 Taxis 	Uber/Lyft (Transportation)
 Resumes & Recruiters LinkedIn (Human Resources)
 Newspapers  Social media (Information Consumption)
 Retail stores  eCommerce (Shopping)
How big is this trend? Quantifying change while it is occurring 
can	be	a	fool's	errand,	but	varied	indicators	suggest	that	a	
hockey stick best describes startup category growth. The graph 
below demonstrates the growth of Innovation Industries in 
comparison to traditional industries in Silicon Valley. 
Exhibit: Innovation Industries and Overall Economy Silicon 
Valley (2003-2013)
Source:	Moody's	Analytics 
Analysis: Collaborative Economics
13
 
Why startups are exploding
To	what	extent	 is	 talk	of	a	 revolution	 too	much	 inflated	hype?	
Will this bubble burst like the last one? While no one can fully 
predict	 the	 future,	 we	 can	 confidently	 echo	 The	 Economist	 in	
saying	 that	 "Today's	 entrepreneurial	 boom	 is	 based	 on	 more	
solid foundations than the 1990s Internet bubble, which makes 
it	more	likely	to	continue	for	the	foreseeable	future."
What	is	happening	behind	the	scenes	to	foster	this	kind	of	"sudden"	
explosion? The answer is many factors have been building to this 
moment for some time. Steve Blank, an entrepreneur, thought 
leader, and faculty member at Stanford and Berkeley proposed 
four key reasons for the startup explosion.
1. Startups can now be built for thousands, rather than 
millions of dollars
The cost of product development has fallen by a factor of 10 over 
the past decade. Code is available in free snippets, integrations 
are easy thanks to application programming interfaces (APIs), 
development comes cheap with temporary freelancers wielding 
plug & play tools, and once costly servers have given way to pay-
as-you-go services.
2. A higher resolution venture finance industry
When a VC is required to spend millions of dollars on an investment, 
they must make a small number of big bets. But the decrease 
in capital needed to start a software company has opened up 
the VC space to new types of investors: angels, accelerators, and 
micro-VCs. The checks they write are smaller, generally in the 
$10,000	to	$500,000	range,	which	means	they	can	make	a	whole	
lot of small bets and give birth to a larger number of startups. 
Since	many	can	be	started	on	such	a	shoestring,	they	don't	even	
look for outside funding until later stages of developmentan 
idea that was all but impossible a decade ago.
3. Entrepreneurship developing its own management 
science
In 1602, the Dutch East India Trading company formed the 
world's	 first	 multinational	 corporation.	 Around	 three	 hundred	
years later Frederick Taylor, Henry Ford, and Alfred Sloan 
invented the foundations of modern Management Science and 
disseminated this knowledge in Business schools and MBA 
programs	 throughout	 the	world.	 The	first	wave	of	 Information	
Era	venture	backed	software	companies	began	in	the	1970's.	For	
the	first	few	decades	many	entrepreneurs	and	investors	in	the	
startup community misapplied the formalized lessons they had 
learned in business school to the startups they were running. 
Over time, many entrepreneurs began to recognize they were 
playing	 a	 different	 game	where	 the	 old	 rules	 did	 not	 apply	 in	
this new context. Forty years after the inception of the modern 
startup era, Steve Blank with The Four Steps to the Epiphany and 
Eric Ries The Lean Startup laid the foundation for a Management 
Science for Entrepreneurship which has come to be known as 
the Lean Startup Movement. 
The Lean Startup philosophy formally recognized that startups 
were not shrunken down versions of large corporations (what Eric 
Ries'	has	called	the	Startup	Dollhouse	fallacy),	where	Industrial	Era	
management fundamentalsfrom hierarchical organizational 
structures to rigid long-range planssimply did not work well 
for the rapidly evolving and uncertain markets and landscapes of 
the Information Era. As the practices and principles of the Lean 
Startup have continued to evolve and spread into mainstream 
consciousness	entrepreneurs	have	become	significantly	better	
at creating startups.
Entrepreneurs who have internalized the Lean Startup 
understand that incorrect assumptions are no longer disasters, 
they	are	opportunities	to	pivot.	Unfinished	products	aren't	hidden	
behind	closed	doors,	 they're	called	public	betas.	Development	
doesn't	proceed	from	a	binder	full	of	requirements,	but	from	a	
flexible	list	of	incremental	improvements	that	are	re-prioritized	
every two weeks based on customer feedback.
Compass has been laboring in this same vein, analyzing data to 
help determine what structures, processes, and people are most 
conducive	 to	a	 startup's	 success.	 The	Startup Genome Report 
provided	 the	first	hard	data	behind	 the	 factors	 that	 increased	
the likelihood of startup successfrom the critical role of 
mentors to the make-up of a founding team. Why Startups Fail 
and Premature Scaling looked at the other side, demonstrating 
that	attempts	 to	 scale	a	business	before	product/market	fit	 is	
Exhibit: Progression of Early Stage Investment 
Silicone Valley Based Startups - For companies that Lauched 
2006, 2009 and 2012
Source: CB Insights 
Analysis: Collaborative Economics
14
 
conclusively achieved is the strongest predictor of failure. And 
the 2012 Startup Ecosystem Report	was	 the	world's	 first	map	
of the global expansion of high-growth technology businesses, 
viewed by an estimated 10 million people and referenced by the 
Obama administration, Chancellor Merkel, and countless other 
global leaders.
4. Speed of consumer adoption of new technology
As The Economist	feature	noted,	"The	Internet	is	now	fast,	universal,	
and	wireless."	Not	unlike	what	Gutenberg's	printing	press	gave	
nascent publishers, this technology provides a mechanism for 
startups, to inexpensively distribute new products and services 
around the world almost instantaneously. From day one, a startup 
can	now	be	what	Steve	Blank	refers	to	as	a	"micro-multinational."
Large companies used to adopt technology from startups very 
slowly.	The	old	business	adage,	 "no	one	got	fired	 for	choosing	
IBM	 or	McKinsey"	 governed	 their	 decision	making	 process.	 In	
just the last 5-10 years and increasingly so with each passing 
year, corporate decision makers are more willing than ever to try 
out new cheaper, faster, more elegant solutions from emerging 
startups. 
The ease of global access to users and customers all around 
world and the increasing speed of technological adoption by 
consumers and businesses has enabled startups to grow at a 
significantly	faster	rate.
What Startups Mean To Economic and Job 
Growth
While the most successful tech startups in the last two decades 
like Google, Facebook and Amazon now loom large in the global 
economy, it is highly likely that the powerhouses that will drive 
the	global	economy	in	2025	are	companies	you've	never	heard	
of	today.	Many	don't	even	exist	yet.	They	will	be	launched	from	
Silicon Valley, certainly, but increasingly from unexpected places 
like Bangalore, So Paulo, Singapore, and the many startup 
ecosystems around the globe that are increasingly in frenzied 
competition for the magic combination of investment dollars, 
founders, talent, and culture that leads to a thriving startup 
ecosystem.	With	trillions	of	dollars	of	GDP	at	stake,	it's	no	wonder	
governments are paying rapt attention.
But beyond wealth, startups also bring jobs. Lots of jobs. In fact, 
they're	the	only	ones	who	bring	new	net	job	growth.	The	highly	
influential	Kauffman	study demonstrated that over the past 28 
years, startups were responsible for all net new job creation in 
the	U.S.	On	average	over	that	period,	Industrial	Era	companies	
shed more jobs than they created, while startups added to the 
total.	Moreover,	this	stunning	finding	held	up	even	when	looking	
at individual years. In 21 out of 28 years (75%), startups were the 
only net job creators.2
Together, these circumstances make for a very simple equation: 
In the coming decades, the ecosystems with the most thriving 
startups will enjoy the most thriving economies.
What Startups Mean To Power Structures
In	the	first	post	we	mentioned	that	while	humanity	doesn't	see	
transitions between eras very often, when they come, every 
aspect	of	society	gets	reinvented:	government,	business,	finance,	
education, health, energy, technology, art, and science. As the 
Information Era bursts into full bloom, we are seeing its dramatic 
impact quite notably in new values related to politics and power.
2 Kane, T. (2010)
A recent Harvard Business Review article studied the cultural 
shifts	 taking	place	 in	real-time.	Where	 "old	power"	 is	held	by	a	
few	and	jealously	guarded,	"new	power"	is	participatory	and	held	
by many.3 Increasingly, new power structures and values are 
pressuring, replacing, or transforming older power structures 
that were reliant merely on consumption.
New power structures cater to the new ideals of an Information 
Era society: People expect to share, shape, fund, produce, 
and co-own companies, products, ideas, governments, and 
even art. They feel an inalienable right to participate and value 
informal decision-making, collaboration, do-it-yourself ideals, 
transparency,	and	informal	affiliation	over	long-term	allegiance.
While the authors of The Harvard Business Review article argue 
that some old power structures are necessary for forward 
momentum (as evidenced by the failure of both Occupy Wall 
Street	and	the	Tea	Party	to	effect	lasting	change),	there	is	little	
doubt that the Information Era values are thoroughly transforming 
3 Heimans, J., & Timms, H. (2014)
Exhibit: The Participation Scale
Source: Jeremy Heimans and Henry Timms  www.hbr.org
15
 
expectations of Industrial Era power structures. To be successful 
moving forward, both structures must learn from each other.
What Startups Mean To Society
Innovation is never clean. It is never linear. Our way forward in 
the	 Information	Era	will	 invariably	have	many	fits	and	starts.	 It	
will	take	false	turns.	We're	still	waiting	for	the	personal	jet	packs	
promised by earlier visionaries. But nor can we hold back the 
tides of change. We must reinvent ourselves with care but also 
with courage. 
We must objectively study the data, rationally evaluate its 
implications and boldly incorporate its implicit recommendations 
in	order	to	ensure	and	maximize	our	society's	future	prosperity.
We must be prepared to continuously evolve, to push through 
boom and bust cycles with an eye towards the longer horizon 
and	understand	that	what	drives	growth	today	will	be	different	
from what drives growth tomorrow. The innovation history of 
Silicon Valley is a valuable model to consider.
From the perspective of today, tomorrow may appear murky, 
but there is one thing we can see with the clarity of a crystal 
ball. Our future will be constructed from the building blocks of 
the Information Era. As we speak, entrepreneurs are crafting our 
path forward on laptops around the world.
Welcome to the rise of the startup.
Exhibit: A World of Difference
Source: Jeremy Heimans and Henry Timms  www.hbr.org
Exhibit: Evolution of Silicon Valley
Source: Employment Development Department, Labor Market Information Division 
Analytics: Collaborative Economics
16
 
The Startup Revolution|4
The Critical Role of the 
Startup Ecosystem
So if our entire global economic future rests on our ability to 
support the growth of startups, how do we help them thrive? 
By supporting the evolution and development of the ecosystems 
in which they are born.
Wait...	 what?	 Aren't	 Internet	 businesses	 inherently	 global?	
Haven't	tools	 like	Skype	and	Slack	made	location	meaningless?	
If successful traditional businesses get started every day around 
the world, why do startups need the special support of a local 
ecosystem?
If	you're	an	experienced	entrepreneur,	the	challenges	described	
below may seem all too familiar. For the rest of the world who 
is still trying to understand the complex and unique drivers 
that either support or suppress startup growth, we hope this 
provides some additional perspective on the importance of 
startup ecosystems.
The	Difference	Between	Startups	and	Small	
Businesses
High	growth	 technology	startups	are	very	different	 from	other	
businesses. If you begin a traditional small business, your odds 
of	 succeeding	 for	 the	first	 two	years	are	pretty	goodaround	
75%. On the other hand, if you found a startup, even if your idea, 
team, product, and plan are good enough to gain VC backing, 
you have a 75% chance of failing.1
That	said,	you'll	never	find	a	local	auto-body	shop	that	reaches	a	
Fortune 500 market cap or hires 10,000 employees, but there are 
hundreds of startups quickly pushing into those upper echelons 
of growth. This is such a critical point that it bears repeating
1 Blank, S. (2013)
startups rarely succeed, but when they do, they can succeed 
brilliantly.
Different	Financing	Needs
Banks make loans to traditional small businesses. If you want 
to start a dry cleaners, you can make a good business case to a 
bank for why their loan to you is a solid investment. The bank can 
compare your projections to millions of other dry cleaners and 
plug	it	all	into	the	time-worn	risk/reward	ratio	for	making	loans.	
For a well-run bank, this is like being the house at a casino. You 
may win some and you may lose some, but at the end of the day, 
the odds are clear and in your favor, so you will win a lot more 
than you lose.
Venture	Capital	firms	invest	in	late-stage,	proven	startups.	If	your	
startup	has	achieved	profitability	and	can	show	a	hockey-stick	
growth	chart,	you'll	have	to	hire	a	team	of	bouncers	to	keep	away	
VC	firms	from	all	over	the	planet	looking	to	fund	the	next	stage	
of	growth	in	exchange	for	a	piece	of	your	company.	VC	firms	are,	
by and large, structured to make multi-million dollar investments 
in a small number of late-stage startups that they can shepherd 
from strong to stratospheric results.
If you want to start a startup company from ground zero, you 
may fail before you can even agree on a catchy name. Plus, from 
the point of view of any standard bank your business model is so 
new	there's	almost	nothing	to	compare	it	to,	which	makes	you	a	
completely	unacceptable	risk.	From	the	perspective	of	a	VC	firm,	
you're	also	too	new	to	be	worth	the	time	of	day.	So	who	fills	the	
gap for early-stage startups?
17
 
The A team: Angels and Accelerators.
The angel investor spreads their investment over a large number 
of early-stage startups and takes a larger percentage of equity 
in return. The vast majority of their investments fail, just as one 
might lose many hands of poker. But the hope is that eventually 
that	royal	flush	will	come	up	and	they'll	find	themselves	owning	a	
huge chunk of the next ZenDesk or Salesforce.
The business model of accelerator programs centers around 
"hacking"	 the	 early	 stage	 funding	 environment	 by	 preparing	
companies	for	their	first	investment,	usually	within	three	months	
of the end of their program. They invest at market terms, provide 
access to mentors and training on a broad set of startup-related 
subjects. In exchange they take 5-10% equity in the company.
How do angels and accelerators decide how to invest their 
resources when a startup entrepreneur has neither a traditional 
business plan nor multiple years of strong start-up results to 
show? Is it that killer idea that grabs their imagination?
The	 "great	 idea"	 is	 perhaps	 one	 of	 the	 most	 mythical	 and	
misunderstood elements to the entire startup process. Ask 
anyone in Silicon Valley these days and they will tell you there 
are no more new ideas. The secretive culture of the late '90s that 
operated on 10-page non-disclosure agreements and NSA-like 
hierarchies	of	classified	knowledge,	has	given	way	 to	a	culture	
that understands execution trumps ideas. Today, walk into any 
coffee	shop	south	of	Market	Street	in	San	Francisco,	you	will	hear	
a dozen fully transparent pitches, challenges, value propositions, 
target	 customers	 and	 funding	 needs.	 It's	 not	 that	 ideas	 don't	
matter,	it's	that	Silicon	Valley	has	learned	that	the	hard	work	that	
differentiates	winners	from	losers	comes	not	in	dreaming	things	
up but in getting them done.
If	the	A	Team	doesn't	invest	primarily	in	plans,	results	or	ideas,	
what	does	that	leave	for	companies	that	don't	yet	have	traction?	
People.
For all the modern tools the Information Era has produced, early-
stage startup capital investment still relies on an old fashioned 
network of trust. Video-conferencing may allow people to 
communicate	 from	 afar,	 but	 the	 "growth	 hack"	 for	 building	
human trust has still yet to be discovered. The vast majority of 
early stage investment dollars are found through the networks 
of trusted human relationships.
Where	can	founders	and	early-stage	investors	find	each	other?	
In a thriving local startup ecosystem.
Different	Talent	Needs	of	Startups	&	Large	
Corporations
Rare Personalities
Working for a large company requires having the appropriate 
experience to match a job description. Day in and day out 
there are written goals, established processes, and predictable 
routines to help facilitate output. This type of work is analogous 
to	traveling	in	a	first	world	country	where	the	trains	run	on	time	
and the hotel can be booked in advance with your credit card.
Working	 for	 an	 early-stage	 startup	 requires	 figuring	 out	 what	
your job should be every day, how to accomplish things that 
have never been done before and when you should throw out 
everything	that's	already	been	done	and	start	over.	This	type	of	
work is analogous to traveling in a third world country where the 
ferry	is	suddenly	delayed	at	least	two	weeks	and	you	don't	even	
know if the next town will have a hotel. Myers-Briggs typology? 
Keirsey	temperament	sorter?	Pick	your	personality	classification	
system and it will tell you that it is a rare sort of person indeed 
who has just the right combination of vision and execution, risk-
taking	profile,	and	fear	of	failure	motivation,	leadership	qualities,	
and listening skills to be successful on a small startup team.
Rare Talent
Many people can read, write, and solve math problems. Very 
few people can design a user experience to make a completely 
new process feel intuitive, or decide the right way to parse and 
visualize data to generate useful insights, or write a string of C# 
code that solves an unprecedented problem in a scalable way. 
To gain a sense of just how rare some of these necessary talents 
are, consider the Silicon Valley Competitiveness and Innovation 
Project 2015 report that demonstrated a stunning 70% of Silicon 
Valley	software	developers	are	foreign	born.	This	finding	is	even	
more astounding considering an immigration environment that 
requires considerable work and investment by companies to get 
and	keep	visas	for	non-U.S.	employees.
Single Geography
In-person conversations lead to innovation, especially for early-
stage startups where the strategy is likely to change three times 
between 9am and 5pm, and the best work is often done by a 
core team after midnight over late-night pizza delivery. Success 
requires	moving	fast	and	pivoting	even	faster,	 in	a	race	to	find	
product/market	 fit	 before	 the	money	 runs	 out.	Often	 there	 is	
precious	 little	 time	 to	 send	 thoughtful	 updates	 to	 far-flung	
employees	or	account	for	multiple	time	zones.	Look	at	the	office	
layout	of	early-stage	startups	and	often	you	won't	even	find	desks	
separated. Instead, the whole team sits around one large table 
so they can all hear every conversation and informally stay on 
the samefast movingpage.
18
 
Where	can	an	entrepreneur	find	the	doubly	rare	combination	of	
personality and talent necessary to build a successful start-up 
team? In a thriving local startup ecosystem.
Different Inputs
If	 you	 start	 a	 pool	 cleaning	 service,	 odds	 are	 you	 don't	 need	
several months worth of research to tell you what customers 
need. But for startups, the strategy changes and pivots happen 
when entrepreneurs get surprising feedback from customers 
that invalidate some of their core assumptions. This means 
founders need ready access to potential customers to shape 
their product as much as they need access to the talent to build 
it. They need to sit down with these customers, ask questions, 
watch their processes, uncover their needs. They need structured 
usability sessions as well as tons of informal conversations about 
a particular space or pain point. Whether the target is a teenager 
for a mobile game or a CFO for an ERP system, easy access to a 
wide variety of potential customers is a requirement.
The same holds true for inputs from mentors. In a fast-paced 
world, no small early-stage startup team can be expected to 
know	everything	about	growth	strategies,	financing,	taxes,	hiring	
laws, new technologies, marketing, and how to set appropriate 
expectations internally and externally. Enter the mentor to provide 
crucial perspective, advice, context, contacts, and inspiration to 
the founding team. This role is so critical, a Compass.co study, The 
Startup Genome Report, found that entrepreneurs with mentors 
had three and a half times more growth and raised seven times 
more money than those without.
Again, for all the technology being glamorized behind startup 
success, the truth is that human relationships are the lead actors 
of this movie and new technology is merely playing a supporting 
role.
Where	can	an	entrepreneur	find	the	right	concentration	of	many	
different	types	of	customers	and	engaged	mentorswhere	the	
culture	runs	so	deep	that	even	the	local	gym	offers	free	services	
in exchange for equity in your startup? In a thriving local startup 
ecosystem. (And yes, this is a Silicon Valley reality.)
Ecosystem Winners and Losers
All of these factors have led certain geographic locations to have 
dramatically higher concentrations of startups for decades. While 
it	hasn't	 yet	been	proven	 if	a	 thriving	ecosystem	 improves	 the	
success rates of each startup individually, it does act as a giant 
factory, producing massive numbers of startups by lubricating 
every	step	of	the	process.	After	that,	 it's	a	numbers	game.	You	
produce enough startups and many of them are bound to be 
successful. Several of them even wildly successful.
"If	you	look	at	a	list	of	U.S.	cities	sorted	by	population,	the	number	
of successful startups per capita varies by orders of magnitude. 
Somehow	it's	as	if	most	places	were	sprayed	with	startupicide.	
I wondered about this for years. I could see the average town 
was like a roach motel for startup ambitions: smart, ambitious 
people went in, but no startups came out. But I was never able to 
figure	out	exactly	what	happened	inside	the	motelexactly	what	
was	killing	all	the	potential	startups.	A	couple	weeks	ago	I	finally	
figured	 it	out.	 I	was	 framing	 the	question	wrong.	The	problem	
is	not	that	most	towns	kill	startups.	It's	that	death	is	the	default	
for	startups,	and	most	towns	don't	save	them."		Paul	Graham,	
founder of the leading startup accelerator YCombinator
To	extend	Paul's	analogy,	startups	are	like	seeds	sprinkled	onto	
the earth. Most will die. A few will cling to life. A few will take 
root	and	thrive	 into	huge	fields	 that	 feed	entire	populations
something needed by the entire world economy. So what is 
fertilizer for startups?
Paris	in	the	20s	was	a	hotspot	for	art.	It	wasn't	just	the	presence	
of painters alone that created the environment, but their support 
by a vast network of art dealers who could sell paintings and 
wealthy people who could buy them, which in turn attracted 
more painters, who saw what people were buying, who helped 
inspire the existing painters, who created more interesting work 
that better supported the art dealers, and so on.
So, too, is the word ecosystem applied to a successful startup 
environment for a reason. There is no one item that makes an 
ecosystem fail or thrive, but a combination of many contributing 
factors. The Startup Ecosystem Report 2015 from Compass.co 
and many global partners will delve deep into these factors and 
provide answers, ecosystem by ecosystem, across the globe.
Let's	get	to	it.
INTRODUCTION
20
 
Introduction to the 
Startup Ecosystem 
Ranking 2015
Welcome to the Global Startup Ecosystem Ranking part of our 
Startup Ecosystem Report Series. It has been almost three 
years since the last Startup Ecosystem Report was released in 
November 2012, and since then the startup sector has grown at 
a booming pace. 
The centerpiece of the 2015 Startup Ecosystem Ranking is our 
updated and revamped Global Ecosystem Index, which ranks 
the top 20 startup ecosystems around the world. The Index is 
produced by ranking ecosystems along 5 major components: 
Performance, Funding, Talent, Market Reach, and Startup 
Experience.
The primary basis of each component:
 Performance on the funding and exit valuations of startups 
headquartered in an ecosystem 
 Funding on VC investment in the ecosystem and the time it 
takes to raise capital
 Talent on the quality of technical talent, its availability and 
cost
 Market	reach	on	the	size	of	the	local	ecosystem's	GDP	and	
the ease of reaching customers in international markets
 Startup	Experience	on	first-party	survey	data	that	is	linked	to	
success of startups, such as having veteran startup mentors 
or founders with previous startup experience
The rest of the report includes detailed deep dives into the top 
20 startup ecosystems.
The 2015 Startup Ecosystem Ranking is a collaborative 
effort involving:
 Insights from over 200 interviews with entrepreneurs from 
25 countries 
 Insights from 11,000 startup surveys completed in the last 5 
months 
 Insights from data and content partners from 10 countries 
including: Deloitte, CrunchBase, Global Entrepreneurship 
Week, Orb Intelligence, Dealroom, and many other 
incubators, accelerators, VCs, policy makers, and academics
 Support from Ron Berman at Wharton Business School, 
Dr. Thomas Funke from the German Federal Ministry for 
Economics and Steve Blank, who wrote the foreword for this 
report
21
 
The Increasing Socioeconomic Importance 
of Startup Ecosystems
Twenty to thirty years ago, almost all tech startups were created 
in startup ecosystems like Silicon Valley and Boston. Today, 
technology entrepreneurship is a global phenomenon, with 
startup ecosystems similar to Silicon Valley rapidly emerging all 
around the world. An interconnected, global startup landscape 
is	taking	shape	and	we've	gathered	the	data	and	crunched	the	
numbers that nobody else has to help you understand how to 
best navigate this brave new economic world.
In September 2011, we wrote a blog post about the coming 
"Entrepreneurial Enlightenment"	 and	 the	 factors	 behind	 its	
emergence. The era is in full bloom now and there has never 
been a better time to be a tech entrepreneur, as entrepreneurs 
are now blessed with the tools, resources, and market conditions 
to	scale	a	company	to	billion	dollar	"Unicorn"	status	faster	than	
ever before. 
The rise of the startup ecosystems all around the world should 
also be seen in the context of the larger socioeconomic structural 
shift taking place. Information era businesses have become the 
dominant	source	of	economic	growth,	 significantly	automating	
or altering much of the industrial and service businesses of the 
previous economic era. Many others have described aspects 
of	 this	 structural	 shift	 under	 different	 names,	 such	 as	 Marc	
Andreessen's	widely	 circulated	Wall	 Street	 Journal	 essay,	 "Why	
Software	 is	 Eating	 the	World"1,	 Deloitte	 Center	 for	 the	 Edge's	
semi- annual "Shift	 Index"2,	 or	 Richard	 Florida's	Creative Class 
Group, which has published numerous books on the topic, such 
as the "Rise	of	the	Creative	Class"3.
1 Andreessen, M. (2011)
2 Hagel, J., Brown, J.S. & Davidson, L. (2009)
3 Florida, R. (2002)
Given	 technology	 startups'	 critical	 role	 in	 the	 information	
economy, the importance of healthy startup ecosystems only 
stands to increase in the future. With this report we want to 
accelerate the development of startup ecosystems around 
the world by answering critical questions for entrepreneurs, 
investors,	and	policy	makers	that	are	difficult	to	answer	without	
the data we have gathered and analyzed in this report, as well 
as	to	raise	the	general	populace's	awareness	of	the	 increasing	
socioeconomic importance of startup ecosystems. 
One of our main goals with this report is to help various 
stakeholders answer the following kinds of questions:
For Entrepreneurs:
"Where should I start my new company?"
"Is Silicon Valley the best place to start my company because it's the 
global mecca of startups?"
"Has the cost of living in New York and the lack of available tech 
talent made it a sub-optimal founding location?"
"When I'm ready, where should I open up my startup's second 
office?"
For Investors:
"How can I find new startup investment opportunities around the 
world?"
"Given the lack of information out there about emerging startup 
ecosystems, how do I evaluate which ones I should focus on for 
finding new opportunities?"
For Policy Makers:
"What initiatives should I prioritize in my startup ecosystem to 
maximize growth?"
"How should I measure the progress of these initiatives?"
For All Stakeholders:
"What is the best way to strengthen the overall vibrancy and 
entrepreneurial spirit my ecosystem?"
THE	GLOBAL	STARTUP	
ECOSYSTEM RANKING
23
 
The Global Startup Ecosystem Ranking
Silicon Valley
1
New York City
2
Los Angeles
3
London
6
Boston
4
Tel Aviv
5
Chicago
7
Seattle
8
Austin
14
Moscow
13
Singapore
10
Bangalore
15
Berlin
9
Paris
11
Toronto
17
Amsterdam
19
Sao Paulo
12
Vancouver
18
Sydney
16
Montreal
20
1
1
4
1
1
2
2
1
9
4
4
4
2
10
5
3
3
7
12
7
6
5
13
3
6
5
10
3
7
13
8
12
5
11
14
12
11
12
4
3
7
8
19
8
8
11
9
9
20
9
13
13
6
16
15
9
7
11
19
19
17
15
8
2
20
16
14
18
5
2
10
6
20
17
12
20
16
17
6
10
14
18
14
15
18
18
19
15
14
11
15
20
10
18
16
19
17
16
13
17
Performance
Funding
Market Reach
Talent
Startup Experience
Performance
Funding
Market Reach
Talent
Startup Experience
Performance
Funding
Market Reach
Talent
Startup Experience
Performance
Funding
Market Reach
Talent
Startup Experience
24
 
Ranking
Growth Index
Performance
Funding
Market Reach
Silicon Valley
1
2.1

















1
1
4
New York City
2
1.8
2
2
1
Los Angeles
3
1.8
4
4
2
Boston
4
2.7
3
3
7
London
6
3.3
5
10
3
Tel Aviv
5
2.9
6
5
13
Chicago
7
2.8
8
12
5
Seattle
8
2.1
12
11
12
Berlin
9
10
7
8
19
Singapore
10
1.9
11
9
9
Paris
11
1.3
13
13
6
Sao Paulo
12
3.5
9
7
11
Moscow
13
1.0
17
15
8
Austin
14
1.9
16
14
18
Bangalore
15
4.9
10
6
20
Sydney
16
1.1
20
16
17
Toronto
17
1.3
14
18
14
Vancouver
18
1.2
18
19
15
Amsterdam
19
3.0
15
20
10
Montreal
20
1.5
NEW
3
2
1
3
3
4
6
7
1
1
4
4
9
9
NEW
NEW
19
17
16
Talent
Startup Exp.
1
1
9
4
10
5
12
7
7
13
3
6
11
14
4
3
8
8
20
9
16
15
19
19
2
20
5
2
17
12
6
10
15
18
14
11
18
16
13
17
One important caveat to note: Our index does not currently include 
startup ecosystems from China, Taiwan, Japan, and South Korea. 
It has been challenging to get survey participants and complete 
data. We hope to have these ecosystems included in our index 
later this year. While we have not completed our analysis yet, we 
particularly expect:  
 Beijing to rank in the top 5
 Shanghai to rank in the top 15 
Top Runners-up: The following ecosystems all scored highly and 
were contenders for a spot among the top 20.
 Atlanta, Delhi, Denver-Boulder, Dublin, Hong Kong, Mumbai, 
Stockholm, and Waterloo.
Key Findings
All 20 ecosystems grew in total number of startups over the last 
years. The predominant startup ecosystems are still located in 
North America and Europe, occupying 16 of the top 20. 
Ten North American ecosystems are now in the top 20, versus 
seven in 2012. Six European ecosystems made it into the top 20, 
one more than in 2012, with Amsterdam emerging as a strong 
newcomer.
Silicon Valley continues to dominate. The Bay Area, which is 
practically synonymous with high growth technology startups, 
has again achieved top rankings in Performance, Funding, and 
Talentmaking for an overall ranking of #1. The only component 
where it is not ranked #1 is Market Reach, where it is #4.
25
 
Silicon Valley
London
Los Angeles
Tel Aviv
Berlin
Boston
Chicago
New York City
Amsterdam
Seattle
Paris
Austin
Singapore
Vancouver
Montreal
Sao Paulo
Toronto
Bangalore
Moscow
Sydney
47.30%
10.20%
6.60%
6.50%
6.10%
5.70%
4.50%
3.60%
2.50%
2.10%
          1.20%
         1.20%
      0.80%
    0.50%
   0.30%
  0.30%
  0.20%
  0.20%
 0.10%
0.10%
Total Exit Volume 2013 & 2014 in USD
Startup	ecosystems	in	Asia	have	grown	significantly,	highlighted	
by Singapore moving from #17 to #10 and Bangalore from #19 
to #15.
Sao Paulo is the only Latin American ecosystem in the top 20. 
The city has an abundance of venture capital in its ecosystem 
but	very	few	exits,	with	this	lack	of	liquidity	events	likely	stifling	
growth.
Growth in the top 20 Canadian ecosystems has slowed relative 
to the rest of the world. While Startup Output grew, though at a 
rate slightly below average, exit value has remained fairly stable2 
and venture capital investments increased by only 5% compared 
to a 98% growth in the other top 20 startup ecosystems (2013-
2014).
Exit Growth Rates
The Silicon Valley ecosystem has captured an astounding 47% of 
the value of all startup exits within the top 20 startup ecosystems 
over the past two years, as much as every other ecosystem 
combined.
However, the global ecosystem landscape is maturing rapidly. 
Over the past three years, non-Silicon Valley ecosystems of the 
top 20 captured 14% more of the exit value pie (Silicon Valley 
captured 55% in 2012 and 41% in 2014), an especially telling 
statistic as the pie itself is growing exponentially. 
Looking at the relative growth rates of exit value based on a 
2013-2014 2-year moving average, we see Silicon Valley growing 
at a 47%1 rate, whereas many other ecosystems further down 
the index are growing at much faster pace. With the same 
measure, London has quadrupled1 and Berlin has grown by a 
factor of 201 (due primarily to the two big IPOs of Rocket Internet 
and Zalando). Over the coming years we expect Silicon Valley to 
stay in the lead, even while other ecosystems temporarily grow 
at a faster pace, with the expectation of ultimate convergence 
towards	 an	 equilibrium	 that	 looks	 a	 fairly	 conventional	 80/20	
power law; i.e. Silicon Valley capturing 30-50% of the total exit pie, 
the next 3 startup ecosystems capturing an additional 30-50% of 
the pie and the following top 16 startup ecosystems capturing 
the remaining 20% of the total exit pie.
Exit value grew much faster in the top European ecosystems 
than	 in	the	top	U.S.	ecosystems:	4.1x	 in	Europe	versus	1.5x	 in	
the	U.S.	 (2013-2014),	 yet	 in	 2014	 the	 exit	 values	were	 still	 on	
average	82%	higher	in	U.S.	ecosystems	than	in	European	ones.
Capital Growth Rates
Total venture capital investment across the top 20 ecosystems 
rose 95% from 2013-2014.
The ecosystems with the most growth in VC were Bangalore (4x), 
Boston (3.7x), Amsterdam (2x) and Seattle (2x). Meanwhile, Silicon 
Valley almost doubled up with 93% growth from 2013 to 2014, 
with indications from Crunchbase that almost all of the increase 
in Silicon Valley funding was in late stage Series B and Series 
C+ capital rather than early stage capital, which was relatively 
stagnant. The increase in late stage capital is aligned with the 
1 See IV Methodology; 7. Growth Index 
26
 
trend of hypergrowth startups delaying going public much 
longer in favor of continuing to rely on private capital, which is 
far simpler from a legal and regulatory perspective. 
The startup ecosystems with the most growth in seed rounds 
over the last 3 years were Bangalore by 53%, Sydney by 33%, and 
Austin by 30%, (all expressed as a 2012-2014 yearly average).
Only	one	startup	ecosystem's	growth	slowed:	Moscow.	Its	average	
number of seed rounds decreased by 32% over the last  year.
Most	Significant	Changes	In	Ecosystem	
Ranking since 2012
The startup ecosystems which made the biggest leaps are New 
York, Austin, Bangalore, Singapore, Berlin and Chicago. New 
York	City	made	a	significant	leap	among	the	established	players,	
moving from position #5 to #2 to take the silver medal. Austin, 
Texas, meanwhile leapt all the way into #14th place, whereas 
three	 years	 ago	 they	 didn't	 even	 crack	 the	 top	 20.	 Bangalore	
moved from #19 to #15, Singapore from #17 to #10, Berlin from 
#15 to #9, and Chicago from #10 to #7.
The startup ecosystems which made the biggest falls are 
Vancouver, Toronto, Sydney, and Seattle. Vancouver slipped 
out of the top 10 from position #9 to #18, Toronto slid from #8 
down to #17, Sydney dropped from #12 to #16, and Seattle fell 
from #4 to #8. Again, all of these ecosystems did grow in the 
past three years, but not as fast as other ecosystems, which puts 
them at risk of eventually being left behind.
Three ecosystems fell out of the top 20 completely since 2012: 
Santiago, Melbourne, and Waterloo. Santiago experienced fast 
"catch	up"	growth	for	several	years	but	 is	now	just	a	bit	above	
average with a growth index of 2.6 (average = 2.4). The growth 
of Melbourne likely took a hit due to its close proximity to the 
larger startup ecosystem of Sydney. Smaller ecosystems with 
close proximity to larger ecosystems often have a hard time 
continuing to grow due to new and existing talent and capital 
migrating to the larger nearby ecosystem.  Regarding Waterloo, 
our methodological change of removing Startup Output per 
capita as a performance metric is the main reason for its lower 
ranking. It has a Growth index of 2.45, which, while only slightly 
above	 average,	 is	 significantly	 higher	 than	 most	 of	 the	 lower	
ranked ecosystems in the top 20.
Individual Startup Ecosystem Highlights
The New York City startup ecosystem moved from #5 in 2012 to 
#2 in the world, solidifying its position as the dominant ecosystem 
on	the	East	Coast	of	the	U.S.,	with	Boston	coming	up	from	#6	to	
#4.
One	of	the	major	reasons	for	NYC's	growth	is	that	it	is	the	most	
popular	location	for	startups	foreign	to	the	U.S.	to	open	a	second	
office	or	move	their	headquarters.	We	noticed	that	once	many	
startups around the world have a functional, saleable product 
in	 their	 home	ecosystem,	 they	 look	 to	 set	 up	 a	 sales	office	 in	
NYC		rather	than	Silicon	Valley	in	order	to	gain	access	to	the	US	
Market.	However,	a	significant	drawback	to	the	NYC	ecosystem	is	
a scarcity of well-priced technical talent due to competition from 
other local sectors , such as Finance, Media, and Health Care. 
Austin, Texas, made a big leap in the 2015 ranking, emerging from 
the	unranked	to	slotting	in	at	#14.	Austin's	strengths	include	its	
high talent quality (ranked #5), its very entrepreneurial culture 
(ranked #2 in Startup Experience), and its popularity as a second 
office	location	for	Silicon	Valley	startups	due	to	its	lower	cost	of	
acquiring technical talent. 
Berlin moved into the #9 position on the ecosystem index, 
jumping up from #15 in 2012. This is an impressive jump and 
means Berlin has gone from being a local powerhouse to being 
a major global player. In our 2012 ecosystem report many 
stakeholders involved in the Berlin ecosystem felt they were 
under-ranked given the local energy and enthusiasm. In this 
case, their provincial conviction turned out to be a harbinger for 
future progress.
Boston is ranked #4 in 2015, two places higher than in 2012. 
Boston has exceptionally strong late-stage performance metrics 
highlighted by the fact that its exit value grew 52% faster than 
the global average over the last two years1.
The Indian hub of Bangalore has had explosive growth in the 
last few years. To many eyes, this rise is unexpected. For the last 
couple of decades, Bangalore has been mostly an outsourcing 
center, hardly characterized for the innovative culture required 
for	creating	new	technology	startups.	$2.256	billion	of	venture	
capital was deployed in Bangalore in 2014, #7 among all startup 
ecosystems. Bangalore also boasts an incredibly youthful startup 
ecosystem,	with	 the	youngest	average	 founders'	 age	of	all	 the	
top 20 ecosystems.
27
 
The lack of gender equality is common across all startup 
ecosystems. No ecosystem comes close to an equal share of male 
and female founders, although psychologists and sociologists 
continue	 to	 debate	whether	 50/50	 is	 the	 target	 to	 strive	 [see 
this	 article	 on	 gender	 differences	 by	 Florida	 State	 Psychology	
professor Roy Baumeister]2	 forhat's	 the	 target	 to	 strive	 for	
is debatable. Overall, the trend for female entrepreneurs is 
significantly	upthe	number	of	 female	 founders	 in	 the	 global	
startup ecosystem has grown by 80% over the last three years. 
In 2012, 10% of startups had a female founder, as compared to 
the 18% global average among the top 20 in 2015. Chicago, with 
30% female founders, has the greatest percentage of women 
entrepreneurs out of the top 20 startups ecosystems.
US	startup	ecosystems	(and	to	a	lesser	degree	Canada)	are	the	
only places in the world where a software engineer gets paid 
a higher salary for working at a startup than at a comparable 
position	at	a	larger,	more	established	corporate	firm.	Whereas,	
in almost all other startup ecosystems worldwide, the salary for 
working at a startup versus a large corporation is about the same 
[1]. However, even this is surprising. Proper supply and demand 
equilibrium would have startup employees earning a much 
smaller salary than if they worked in a traditional corporation, but 
with the upside of having various and generous forms of stock-
based compensation. This dynamic speaks to the hot war for 
talent in the top startup ecosystems, but also highlights the huge 
imbalance in supply and demand for technical startup talent as 
a pervasive global issue. 
2 Baumeister, R. (2007)
Top Recommendations for Each Set  
of Stakeholders
For Entrepreneurs:
Use	the	global	startup	ecosystem	to	distribute	your	organization,	
aligning with the strengths of each ecosystem. For example, that 
would translate to recommendations such as:
 Have your executive team headquartered (or at least spend a 
lot of time) in a well-capitalized ecosystem like Silicon Valley.
 Work in a smaller, and cheaper startup ecosystem when 
your	startup	is	pre-product	market	fit.	Then	move	your	
headquarters to a larger startup ecosystem after product 
market	fit	is	reached	and	you're	ready	to	raise	a	big	financing	
round.
 Set	up	a	second	office	focused	on	engineering	in	an	
ecosystem with a lot of inexpensive and plentiful tech talent, 
such as Austin, Tel Aviv, or Sydney.
 Set	up	a	second	sales	office	in	NYC	to	get	access	to	the	U.S.	
market and many big potential customers.
For Investors:
We analyzed which ecosystems might be undervalued by 
investors and have strong investment opportunities. We also 
compared valuations at each funding round to the baseline 
of Silicon Valley, and looked at the averaged investment per 
company in an ecosystem, and measured the total investment 
value to exit value ratio.
Based	on	this	analysis	we'd	recommend	investors	spend	more	
time looking for opportunities in the undervalued ecosystems of 
Amsterdam, Paris, Chicago, and Berlin. Spend less time looking 
for opportunities in NYC, Toronto, Seattle, and Boston, which 
have	reached	financial	equilibrium	and	are	likely	to	have	fewer	
underpriced, under-discovered gems of companies. 
For Policy Makers:
We see four areas where improved policy can impact the 
success of an ecosystem:
1. The	first	is	to	find	ways	to	stimulate	the	financial	foundation	
of	your	ecosystem	by	offering	matching	grants	to	VC	funds	
and direct grants to startups. Many ecosystems like Tel 
Aviv, Singapore and Santiago have found these policies to 
be very successful, especially in the beginning stages of an 
ecosystem's	formation.
1. Create	policy	that	minimizes	the	friction	of	incoming	flow	of	
foreign capital and foreign talent. 
2. Next, simplify regulations for startups, allowing for low legal 
cost of startup formation, startup bankruptcy, and liquidation 
on startup exit.
3. Lastly,	differentiate	your	startup	ecosystem	and	accentuate	
its	strengths.	Startup	ecosystems	can	differentiate	by	
focusing on a stage of the startup lifecycle such as how the 
Start-Up	Chile	Grant	Program	has	done	for	very	early	stage	
startups. Or, focus on particular markets or product types, 
such as media in Los Angeles or hard science in Boston.
DEEP DIVES
29
 
Deep Dives into 
Top 20 Global Startup 
Ecosystems
The essays at the beginning of this report discussed the broader 
idea of a startup revolution in the midst of the transition from 
the Industrial Era to the Information Era. Now it is time to take 
an indepth look at the ecosystems where startups are born. 
The	 following	 section	 assesses	 and	 compares	 the	 world's	
top 20 startup ecosystems based on Performance, Funding, 
Market Reach, Talent, and Startup Experience. As established 
in	the	methodology	section,	each	of	these	five	components	are	
comprised of selected quantitative and qualitative variables. 
Underlying	 data	 has	 been	 sourced	 from	 this	 year's	 survey	
(with data gathered from approximately 11,000 participants), 
more than 200 expert interviews, and a wide range of trusted 
secondary	 sources	 such	 as	 CrunchBasethe	 world's	 largest	
startup dataset which rich data on variables such as funding, 
office	locations,	and	exits.
Our overarching goal with the deep dives is to provide 
actionable insights for entrepreneurs, investors, and policy 
makers on the ground so they can better understand the 
ranking	and	take	beneficial	actions.
The deep dives aim to give insightful answers to questions 
such as:
 How many days does it take for startups in Bangalore to hire 
talented software engineers?
 What is the average amount of money invested in a Series A 
in Boston?
 How many jobs have been created by startups that are 
located in Berlin?
To better understand our main audience and their 
expectations, we collected feedback from roughly 500 people 
about the 2012 Startup Ecosystem Report (SER). 
Here's	what	we	found:
 Entrepreneurs are the main audience, representing 53% 
downloads of the Startup Ecosystem Report (SER) 2012 
 87% of the roughy 500 survey respondents recommended 
the SER 2012 to someone else and 99% would like to read 
the SER 2015!
 82% considered the ranking to be the most valuable part of 
the SER 2012 
The most frequent feedback on our 2012 report was:
 More information about funding in a startup ecosystem
 More information about methodology and general 
framework
 More in-depth information per ecosystem
 Coverage of more ecosystems
Although we were able to analyze over 40 startup hubs 
across	the	globe,	the	first	version	of	this	year's	report	focuses	
exclusively on the global top 20. We may analyze additional 
cities, and release additional deep dives for the remaining 
ecosystems of our top 40 ranking in the coming months. Email 
us if you have any questions at feedback@compass.co.
To allow for better benchmarking, we did not only compare 
each ecosystem with Silicon Valley, but also with regional peer 
groups.	Having	defined	the	global	top	20,	average	values	have	
been produced based on the following groupings: 
30
 
USA
Top 20: Silicon Valley, New 
York, Los Angeles-Orange 
County, Boston, Chicago, 
Seattle, and Austin
Runners-up: Atlanta, 
Denver/Boulder,	and	
Philadelphia
Canada
Top 20: Vancouver, 
Montreal and Toronto
Runners-up: Waterloo
Latin America
Top 20: Sao Paulo
Runners-up: Buenos 
Aires, Santiago de Chile, 
and Mexico City
Europe & Middle East
Top 20: London, Tel Aviv, 
Berlin, Moscow, Paris, 
Amsterdam
Runners-up: Barcelona, 
Brussels, Copenhagen, 
Dublin, Helsinki, Istanbul, 
Jerusalem, Lisbon, 
Madrid, Milan, Oslo, 
Rome, Stockholm, Tallinn, 
Teheran, Warsaw, and 
Zurich
Asia-Pacific
Top 20: Singapore, 
Bangalore, and Sydney
Runners-up: Bangkok, 
Delhi, Hong Kong, 
Jakarta,  Kuala Lumpur, 
Melbourne, and Mumbai
Not analysed: Seoul, 
Taipei, Beijing, Shenzen, 
Shanghai, and Tokyo
46%
0%
GROWTH
GROWTH
GROWTH
GROWTH
GROWTH
Exit Growth1 
1  Based on a 2-year moving average, see Methodology; 7. Growth Index
209%
99%
314%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Silicon Valley
New York City
Los Angeles
Boston
Tel Aviv
London
Chicago
Seattle
Berlin
Singapore
Paris
Sao Paulo
Moscow
Austin
Bangalore
Sydney
Toronto
Vancouver
Amsterdam
Montreal
32
 
Intro
Silicon Valley has earned its reputation as the global tech mecca 
with 14,000 to 19,000 startups and 1.7 to 2.2 million high-tech 
workers. It is the home to success stories such as Apple, Google, 
Facebook, and countless others. Just these three companies 
combined	have	a	market	cap	of	$1.5	trillion	and	employ	more	
than	165,000	people	worldwide.	Silicon	Valley's	local	and	global	
impact is undeniable.
The	 Silicon	 Valley	 Competitiveness	 and	 Innovation	 Project's	
report on Silicon Valley shows that each high-tech worker in its 
ecosystem	helped	 to	 generate	 roughly	 five	 jobs	 in	 the	 service	
sector, ranging from physicians and teachers to restaurant 
workers and landscapers.1 In its impact study, Facebook itself 
claims to have created 4 million jobs globally, including app 
developers and Facebook marketers.
Even though startup ecosystems have exploded globally, 
Silicon Valley still has about as much capital and exit volume 
as the rest of the top 20 ecosystems combined. Decades of 
lessons learned in high tech entrepreneurship in Silicon Valley 
have been synthesized into a new management science for 
entrepreneurship. This is highlighted by the foundational work 
of Steve Blank and Eric Ries, which gave rise to the Lean Startup 
movement, and whose principles and frameworks now guide 
entrepreneurs all around the world. 
As the poster child for the global startup ecosystem, Silicon Valley 
continues to be an inspiration to other startup communities and 
a gravitation center for founders and high tech talent. More than 
50% of startups are founded by immigrants and more than 70% 
of engineers are immigrants.2
1 Henton, D., Kaiser, J., & Held, K. (2015)
2 Deloitte LLT. (2015)
Silicon Valley 
& Bay Area
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
1
1
4
1
1
2.1
1
33
 
Silicon	Valley's	main	challenges	are	access	to	talent,	affordable	
housing,	 and	 adequate	 public	 transportation.	 This	 year's	 U.S.	
work	visa	cap	of	85,000	was	reached	within	the	first	week.	233,000	
application	were	filed,	 the	majority	of	which	were	 for	 the	 tech	
industry. Due to the lack of work visas it has become common 
practice among Silicon Valley companies to build out remote 
teams	or	 to	 open	 second	offices	 in	 other	 startup	 ecosystems	
inside	and	outside	 the	U.S.	 such	as	Austin,	Seattle,	Sao	Paulo,	
and Moscow.3	Leading	Silicon	Valley	figures	such	as	Paul	Graham	
and Mark Zuckerberg or organizations such as FWD.us and the 
Silicon Valley Leadership Group advocate for immigration reform 
to	allow	more	international	talent	into	the	U.S.	This	would	further	
boost the growth of the high tech industry in Silicon Valley and 
benefit	the	overall	economic	prosperity	of	its	surrounding	areas.	
In	 addition	 to	 the	 stifling	effect	of	 the	U.S.	 immigration	policy,	
in the last six years prices for 1 and 2 bedroom apartments in 
the most popular neighborhoods in the Bay Area have almost 
tripledmaking	it	the	most	expensive	place	to	live	in	the	United	
States.	On	top	of	significant	financial	barriers	to	housing,	housing	
is	limited	due	to	insufficient	transportation,	slow	permits	for	new	
buildings, and rigid zoning rules.4
Ecosystem Partners: StartupGrind, Computer History Museum, 
GSV Labs
"I have been living in San Francisco for almost three 
years now and if there's something you can feel 
in the air here: it is speed. I've never felt this in any 
other place. The pace at which companies move 
around here is just insane."
 
 Stefano Bernardi, Co-Founder at Kickpay 
3 H-1B Fiscal Year (FY) 2016 Cap Season. (2015)
4 SVCIP Report. (2015)
"If you've ever struck a golf ball so perfectly that 
you don't even feel the club making contact and 
the ball just jumps  that's means you hit the sweet 
spot and similarly, Silicon Valley is the Earth's 
startup sweet spot.  I'm a card carrying member 
of the Silicon Valley rollercoaster, being on the 
receiving end of much success and much failure.  
There's just no other place on the planet where 
you can graduate with a class of Y Combinators, 
snag funding and starting growing a business, fail, 
pick up the pieces and be a success all in under 
5 years!  I've had so many great friends, advisors 
and investors, all of whom you'd never find in one 
tiny pinpoint location vying for the same prize 
of building a startup dream into a burgeoning 
business."
 
 Jessica Mah, Founder and CEO at Indinero
Selected Findings
Silicon	Valley	captures	about	45%	of	the	top	20's	
VC investments and exit value, almost 5x its closest 
competitors New York and London.
Silicon Valley has the highest absolute growth in 
VC investments and exit value. It captures 43% 
and	30%	of	the	top	20's	absolute	total	growth,	
respectively.     
Silicon Valley has a highly dynamic labour market. 
At a 40 day average SV has the shortest time to 
hire	an	engineer	in	the	U.S.
Silicon	Valley	startups	offer	their	products	in	16%	
more languages than the North American average.
Silicon Valley has the most Startup Experience: 
48% of all startup employees have previously 
worked in another startup. 
 
Silicon Valley is the ecosystem with the highest 
Startup Density in the top 20. Silicon Valley has 
3x more startups per capita than Seattle or 
Bangalore.
Silicon Valley
34
 
N America Avg
$37.7bn
-87%
Ecosystem value2
Startup output3
Growth Index4
-75%
4.1k
North America Avg
Female founders
Founder age
-2%
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
3%
Average seed round
Average Series A round
Dilution
Rounds with local only investors
60% -2%
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
North America Avg
North America Avg
North America Avg
N. America Avg
North America Avg
North America Avg
North America Avg
$900-950k
14-19k
36.2
35%
-51%
17%
85%
88%
5%
-9%
$800-850k
-3%
19%
61%
35.5
24%
North America Avg
20%
-18%
$264-323bn
2.1
Startup density5
0.8
North America Avg
-64%
1.85-2.5
Funding 1
Demographics1
19%
Performance & Growth1
$7-7.5M
$6.5-7M
Silicon Valley
Compass.co
35
 
North America Avg
Talent1
Market Reach1
Startup Experience1
Time to hire engineers
Software engineer salary
Remote employees
43%
26% -40%
Female employees
Foreign employees
45%
29%
-11%
Advisors with equity
Employees with startup experience
Equity to employees
10%
Foreign Customers
Top target Markets
USA
United Kingdom
India
36%
37% 4%
Number of product languages
2.2
1.8
-9%
44%
48%
-29%
1.38
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
North America Avg
19%
48
40
$118k
North America Avg
North America Avg
-16%
North America Avg
North America Avg
North America Avg
North America Avg
19%
8%
North America Avg
North America Avg
$91k
-23%
-28%
26%
32%
Metropolitan GDP
North America Avg
$535bn
-21%
$430bn
Silicon Valley
Compass.co
36
 
Supporter & Policy Maker Insights1
Immigration time
Local government rated positive  
Top Policy Issues
National government rated positive 
11%
Cost of living
Cost & availability of workspace
Immigration
1  % Delta to Regional Average, % Delta to Silicon Valley
23%
North America Avg
North America Avg
North America Avg
134%
25%
10%
23
21
22%
28%
"Our parents used to go to the capital to have a career. Today is no 
different. The world has just become a village and capitals are not defined 
by countries anymore but by industries. For technology, Silicon Valley is 
the capital. I moved from Belgium six years to create a startup in SF. What 
makes SV unique is that people never push back on an idea. That gives 
entrepreneurs the freedom they need to prove the world that their ideas are 
worth something."
 
 Xavier Damman, Co-Founder and CEO at Storify
"There are magical places and times where things HAPPEN -  Athens in the 
Classical period, Florence in the late 15th century - these place/times reach 
a critical mass and produce inventions and ideas that become a part of our 
collective human experience from that point on. When you are in a place like 
that, the feeling is totally unmistakable and impossible to describe to someone 
who hasn't felt it. Different people react differently - some give each other high 
fives and chase money and power, others surf the bleeding edge of discovery 
and get their kicks from peering over the abyss, some sell shovels to the gold 
miners - but fail or succeed, you are part of something big, magical, and 
irresistibly important."
 
 Ilya Druzhnikov, Serial Entrepreneur  
Silicon Valley
Compass.co
37
 
Intro
New York has evolved into the second strongest startup 
ecosystem in the world over the past three years, with 
approximately 7,100 to 9,600 active tech startups and the second 
highest amount of VC investments. 
According to Jones Lang LaSalle, local tech employment has 
grown by as much as 40% since 2008a slightly higher rate than 
in Silicon Valley. In total, New York has created approximately 
90,000 tech jobs. The city has recognized that supporting 
startups is an opportunity for the city to upgrade itself and fully 
adapt to the Information Era. In this spirit, NYC Mayor Bill de 
Blasio	continues	to	build	on	former	mayor	Michael	Bloomberg's	
tech-focused agenda.1
With	 a	 local	 GDP	 of	 approximately	 $1.5	 trillion,	 the	New	 York	
ecosystem is a large playground to test and market all kinds of 
products. This is a key reason why the city has become the most 
popular	ecosystem	for	startups	to	build	out	a	second	office	for	
sales and marketing.
According to recent statistics, the city is home to only 500,000 
high-tech workers, which is 50% less than estimations for smaller 
cities such as Austin, Seattle, or Boston. This is due to its relatively 
recent rise, and therefore, lower number of late-stage startups 
and mature tech companies.2 Big success stories like Etsy or 
Shutterstock,	both	with	a	market	cap	 just	below	$2	billion,	are	
lagging behind the success stories of Boston, Chicago, Seattle, 
and L.A. However, rising stars such as WeWork, recently valued 
at	$10	billion3,	illustrate	New	York's	growth	potential.
The biggest challenge to remain at #2 overall is the cost and 
availability of engineering talent. Startups in NYC compete with 
1 Perry, T. (2015)
2 Henton, D., Kaiser, J., & Held, K. (2015)
3 Austin, S. (2015)
New York 2
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
3
2
1
9
4
1.8
38
 
Selected Findings
New York ranks second in Ecosystem Performance. 
It is #2 in both Startup Output (number of 
startups)	and	its	Ecosystem	Value	of	$47	billion	
(estimated value of all startups at or prior to exit). 
Though as a relatively younger ecosystem, its exit 
value is lagging behind at #8.
New York is #2 in Funding with 20% more VC 
investments and a 17% shorter time to raise than 
Boston.
New York is the global distribution powerhouse 
ranked #1 in Market Reach.
The cost of capital in New York City is lower than 
in Silicon Valley with an average dilution of 16% 
versus 19% in Silicon Valley. 
New York startups employ one-fourth less foreign 
team members than Silicon Valley startups.
New York-based startups employ 6% more females 
than the North American average.
35% of the customers of New York startups are 
located abroad.
53% of all startup employees previously worked in 
another startup. This is the highest value in North 
America.
numerous Fortune 500 companies, and as a result it takes 40% 
longer to hire a software engineer than in SIlicon Valley.
Ecosystem Partners: Rubicon VC and DreamIt Ventures
"Business, entrepreneurship, and innovation come 
naturally to NYC. It's a city that built its foundations 
on challenging the status quo. As such, New York is 
home to all sorts of businesses including a healthy 
startup scene. The well-rounded nature of the city 
makes it much more difficult for the 'cult of tech' 
to take root.  There is no room for techno-elitism 
here, because the city is more diverse than just 
tech startups. The community is more tolerant of 
outsiders, not elitist, and lacks the self-aggrandizing 
hyperbole of other communities.  Few are running 
around yelling about how they are 'changing the 
world'; instead founders talk about how they plan to 
turn a profit."
 
 Kosta Grammatis, CEO at Oluvus
"New York City is now the second biggest city in 
the world for venture capital. And there's a good 
reason for this  it's the melting pot of the world. 
Millions of people come from all over to try their 
hands at success, whether it's in fashion, finance, 
food, entertainment, advertising, or more and more 
often, entrepreneurship and startups. And yet, New 
York City's startup scene has a very different vibe 
from that of Silicon Valley. It's a much smaller and 
more tightly knit community. You have direct access 
to many more traditional companies and industries. 
And most importantly, there's the excitement of living 
in one of the most fast-paced and energetic cities in 
the world."
 
 Mattan	Griffel,	Co-Founder	and	CEO	at	One	Month
"What I love about the NYC startup ecosystem 
is that, it's so diverse. Because NYC is the #1 city 
within industries such as finance, real estate, 
advertising, fashion and media there are a lot of 
smart people entering the startup community from 
these industries - especially since the financial crisis. 
Now tech is trendy and banking is out. That mixed 
with the general diversity in NYC gives an interesting 
blend to the startup community which is much 
different from the Valley. It is certainly more driven 
by business, cash flow and tangible value. If your 
business is tied to any of the major NYC industries I 
think there is no better place to be."
 
 Oscar Jung, Founder at BookBuses
New York
39
 
N America Avg
$37.7bn
-17%
N. America Avg
1.8
Silicon Valley
2.1
Silicon Valley
$264-323bn
North America Avg
-7%
$7-7.5M
0.8 91%
N. America Avg
.
Europe Avg
Female founders
Founder age
34.8
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
85%
88%
18%
35%
17%
Average seed round
Average Series A round
Dilution
16%
19%
19% 20%
24%
-3%
-8%
Rounds with local only investors
67% 
61%
7%
60% -10%
$850-900k
North America Avg
Silicon Valley
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
98%
1.85-2.5 427%
N. America Avg
Silicon Valley
Silicon Valley
Silicon Valley
Silicon Valley
Silicon Valley
N. America Avg
 N. America Avg
7.1-9.6k
Silicon Valley
N. America Avg
16%
24%
North America Avg
0.35-0.5
-15%
-12%
100%
14-19k
$900-950k
$800-850k
4.1k -51%
92%
-7%
24%
20%
51%
36.2
4%
35.5 2%
-11%
$6.5-7M
$7.5-8M
Startup density5
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
Startup output3
Growth Index4
$40.8-49.8bn
1.8
6.5x
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
New York
Compass.co
40
 
Time to hire engineers
Software engineer salary
Remote employees
27%
43%
26% -2%
$117k
$118k
62%
-25%
1%
6%
Female employees
Foreign employees
34%
32%
28%
29%
-6%
64
40
48
Advisors with equity
Employees with startup experience
53%
Equity to employees
10%
8%
10% -3%
Silicon Valley
North America Avg
1.75
Foreign Customers
Top target Markets
USA
China
India
35%
36%
37% 8%
3%
Number of product languages
1.8
2.2
1.8 2%
21%
-37%
-10%
-18%
44%
48%
10%
-21%
1.38
1.94
North America Avg
Silicon Valley
North America Avg
Silicon Valley
33%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
-18%
$91k -22%
26%
45%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Talent1
-4%
Metropolitan GDP
$430bn
$535bn
Silicon Valley
-64%
-72%
N. America Avg
$1506bn
1  % Delta to Regional Average, % Delta to Silicon Valley
Market Reach1
Startup Experience1
New York
Compass.co
41
 
Supporter & Policy Maker Insights
Immigration time
10%
0%
Local government rated positive
Top Policy Issues
23%
28% -29%
-42%
National government rated positive 
11%
-53%
-80%
Cost & availability of workspace
Cost of living
Taxes
21
Silicon Valley
North America Avg
21
Silicon Valley
North America Avg
53%
40%
Silicon V
North America Avg
1
25%
23
1  % Delta to Regional Average, % Delta to Silicon Valley
"If you are building a traditional technology startup, go to Silicon Valley. 
If you are building any other organization, go to NYC. While 99% of my 
conversations in San Francisco are about tech startups and I appreciate its 
one singular focus, in NYC you are exposed to the best of class talent from 
media, art, advertising, finance, large corporations, fashion and much more. 
If you are building an organization that interacts with other industries on a 
global scale, there is no better place than New York." 
 
 Fabian Pfortmueller, Co-Founder at Holstee
New York
Compass.co
Intro
As in 2012, Los Angeles is ranked the third-strongest ecosystem 
in	 the	 world.	 At	 $34	 billion,	 it	 ranks	 #5	 in	 Ecosystem	 Value	
(estimated value of all startups at or prior to exit). There are 
between 5,500 to 8,300 active tech startups, the highest Startup 
Output after Silicon Valley and New York. 
Los Angeles boasts success stories such as Snapchat, SpaceX, 
Whisper, and Tinder - just a few reasons why stakeholders 
around the world pay close attention to L.A.-based tech startups 
these days. 
The city is estimated to have around 200,000 engineers hailing 
from a variety of talent pools such as the renowned California 
Institute of Technology. 
Yet,	 L.A.'s	 key	 challenge	 is	 the	 same	 as	 Silicon	 Valley'scost	
and availability of technical talent. This led to its ranking of only 
#10 in Talent overall. In L.A., startups have to cope with annual 
engineering	salaries	of	$108,000,	which	is	16%	higher	than	the	
regional	 average	 of	 U.S.	 and	 Canadian	 ecosystems.	 This	 may	
explain why, at 32%, L.A.-based startups have one of the highest 
shares of remote employees (18% above the North American 
average).
Aside from this drawback, the Los Angeles ecosystem is strong 
in all other critical areas. For instance, the local market in L.A. is 
61% bigger than in Silicon Valley. Los Angeles also ranks #5 in 
Startup Experience, which enables its entrepreneurs to draw on 
significant	past	startup	experience	and	access	to	a	deep	pool	of	
seasoned employees and mentors. 
Ecosystem Partners: Mucker Capital, Cross Campus and Techstars
Los Angeles 
Orange County
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
5
4
2
10
5
1.8
3
43
 
Selected Findings
Los Angeles ranks #4 behind Boston in both 
Performance and VC investments, yet it is #3 in 
Startup Output and ties Tel Aviv in #3 for exit 
value. 
It has the second largest local market for startups 
in the world right after NYC.
L.A.'s	Growth	Index	is	the	lowest	among	top	10	
ecosystems, just behind NYC and Singapore.
The average seed round in Los Angeles is 18% 
lower than in Silicon Valley, though Series A rounds 
are about the same size.
L.A. startups have teams that are 28% female - 
6% above the North American average.
L.A. startups have 40% fewer foreign customers 
than the average startup in North America.
Almost 50% of startup employees in L.A. have 
previous startup experience, and 18% of all 
founders previously worked at hypergrowth 
startups.
"Perhaps the most exciting thing about L.A.'s 
startup ecosystem is that the founders have such 
diverse backgrounds, many of them creative. In L.A., 
it's not just about what you can do with tech, but 
possibly even more about how technology shapes 
today's culture. It's no surprise that companies like 
SnapChat and Tinder are based in L.A."
 
 Yohei Nakajima, Program Manager at Techstars LA
"With an annual output of around 3,000 
graduates, Southern California produces more 
software engineers than any other major U.S. hub 
including Silicon Valley. Ten years ago, the best 
engineers typically had to move up to the Bay Area 
to work for big tech companies such as Google and 
Yahoo. Today, we have all these companies down 
here, enabling our talents to stay with many of 
them, ultimately creating their own startups. Brain-
drain is no longer the case." 
 
 William Hsu, Co-Founder and Managing Partner at Mucker 
Capital
"Although the awareness of L.A.'s startup 
community is a relatively new thing, it's been clicking 
for decades. As a result, the L.A. startup team is 
more experienced than one might expect."
 
 Dan Dato, Co-Founder at Cross Campus
Los Angeles & Orange County
44
 
N America Avg
$37.7bn 5%
8.1x
Silicon Valley
$264-323bn
North America Avg
$7-7.5M
Silicon Valley
$6.5-7M
0.8
$900-950k
$800-850k
-4%
36.2
35.5
-6%
Female founders
22%
24%
20%
Founder age
37.6
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
85%
88%
18%
35%
17%
Average seed round
Average Series A round
Dilution
18%
19%
19% 1%
$6-6.5M
5%
19%
Rounds with local only investors
61%
60% 17%
140%
-41%
321%
-10%
10%
98%
-4%
20%
24%
18%
7%
6%
12%
Silicon Valley
Silicon Valley
N. America Avg
Silicon Valley
North America Avg
Silicon Valley
N. America Avg
Silicon Valley
North America Avg
5.5-8.3k
$750-800k
Silicon Valley
North America Avg
71%
52% 
Silicon Valley
North America Avg
Silicon Valley
North America Avg
14-19k
4.1k
Silicon Valley
N. America Avg
1.85-2.5
0.4-0.65
Ecosystem value2
Growth Index4
$42.1-51.4bn
Funding 1
Demographics1
Performance & Growth1
North America Avg
N. America Avg
1.8
Silicon Valley
2.1
1.8
Startup output3
Startup density5
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Los Angeles & Orange County
Compass.co
45
 
$118k 8%
North America Avg
Silicon Valley
$91k -16%
Time to hire engineers
Software engineer salary
Remote employees
32%
43%
26% -18%
$109k
36%
-2%
5%
Female employees
Foreign employees
29%
45%
32% 11%
28%
29%
26%
-6%
49
40
48
Advisors with equity
Employees with startup experience
47%
Equity to employees
10%
1.73
Foreign Customers
Top target Markets
USA
India
South Korea
27%
36%
37% 40%
34%
Number of product languages
1.8
2.2
1.8 1%
20%
-18%
54%
2%
-7%
44%
48%
12%
-20%
1.38
1.94
2%
-14%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
10%
10%
Talent1
Market Reach1
Startup Experience1
$430bn
$535bn
-38%
Metropolitan GDP
$860bn
-51%
Silicon Valley
N. America Avg
1  % Delta to Regional Average, % Delta to Silicon Valley
Los Angeles & Orange County
Compass.co
46
 
Europe Avg.
28%
25%
Supporter & Policy Maker Insights
Immigration time
Local government rated positive
Top Policy Issues
23%
23%
23%
1%
National government rated positive 
21%
11%
21%
-49%
Cost of living
Cost & availability of workspace
Taxes
Silicon Valley
North America Avg
Silicon V
North America Avg
21
22.8 10%
0%
21
Silicon Valley
North America Avg
1  % Delta to Regional Average, % Delta to Silicon Valley
1
"There is something magical happening in Southern California. Local 
investors are increasingly adopting  a pay-it-forward attitude and accepting 
being "long" on their investment with startups. More exits bring entrepreneur-
investors to the funding pool and helping with hands-on coaching and 
mentorship. Entrepreneurs are now staying home and do not need to travel to 
the Bay Area to make it. The region is extremely entrepreneurial, and the tech 
talent pool is now considering startups as an alternative in a career plan. 
The wealth of industries, abundant creativity, and lifestyle oriented 
environment is creating interesting approaches to innovation and the SoCal 
region is defining its identity that is somehow different from Silicon Valley. 
Virtual Reality for example is now anchored in Orange County and also LA 
and is going to be one of the largest markets globally and Silicon Valley 
investors have recognized it. 
The Southern California ecosystem has bred innovations in entertainment, 
technologies, and design, but to date hasn't reached the level of recognition 
Silicon Valley is enjoying. However, as TED talks are conveying ideas worth 
sharing, Socal ventures are telling stories that will define the dream and 
imaginations that move us globally, with a different twist. These new ventures 
may be defining  the new eclectic and cultural oriented startup ecosystems."
 
 Amir Banifatemi, Managing Partner at K5 Ventures
Los Angeles & Orange County
Compass.co
47
 
Intro
Boston has a long-standing history of entrepreneurship, with 
a	significant	number	of	tech	companies	that	have	gone	public.	
Boston is second only to Silicon Value in Ecosystem Value with 
$46	billion	and	ranked	#5	in	Startup	Output	with	3,700	to	4,500	
active tech startups. 
Today,	the	majority	of	Boston's	startups	are	science	driven	and	
B2B,	so	 they	often	flow	under	 the	 radar	of	media	coverage.	A	
notable success story highlighting that Boston is not only focused 
on	B2B	models	is	WayFair.	The	eCommerce	startup	raised	$305	
million	during	its	IPO	and	is	currently	worth	more	than	$3	billion.1
Boston's	startup	ecosystem	is	a	worldwide	leader	in	science	and	
technology-based enterprises in areas like pharma, life sciences, 
biotech,	and	robotics.	Entrepreneurs	in	Boston	generally	benefit	
from a rich network of mentors and supportive organizations 
such as Bolt, Techstars Boston, Harvard Innovation Lab, and 
MassChallengethe latter claiming to be the largest startup 
accelerator in the world2.
At	the	core	of	Boston's	community	are	top-class	higher	education	
institutions	such	as	Harvard	University,	MIT	and	dozens	of	others.	
Without	 a	 doubt,	 these	 schools	 produce	 some	 of	 the	 world's	
best and brightest minds, including plenty of entrepreneurial 
and engineering talent. However, it takes on average 20% longer 
for a startup to hire an engineer in Boston and salaries are 16% 
higher than the North American average. These factors explain 
Boston's	#10	ranking	in	Talent.	
Boston	ranks	third	in	Funding	with	$4.4	billion	in	VC	investments.	
Interestingly, the average Series A investments in Boston are the 
highest in the world. 
1 Keohane, D. (2014)
2 MassChallenge. (2015)
Boston
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
3
3
7
12
7
2.7
4
48
 
Selected Findings
Boston's	#3	ranking	in	Performance	is	achieved	
despite its 5th place in Startup Output and 6th 
place in exit value, thanks to the higher average 
valuation of its ~4,000 startups. This is due to the 
ecosystem's	relatively	higher	number	of	late-stage	
startups. 
Boston easily ranks #3 in Funding with 70% higher 
VC investments than L.A., which ranks #4.
Boston startups raise the highest amount for their 
Series	A	globally	with	an	average	of	$10	million	to	
$10.5	million.
Software	Engineers	earn	$109,000	on	average	
16% more than the North American average.
Boston startups share 40% more equity with their 
employees than startups in Silicon Valley.
In Boston, 13% of startups have a founder with 
hypergrowth experience (35% in Silicon Valley).
The	 total	 VC	 inflow	 of	 over	 $4	 billion	 in	 2014	 underlines	 the	
fact that startups have good access to funding, although the 
ecosystem does not include many people who can cut checks 
over	 coffee.	With	 regards	 to	 the	 global	 benchmarking,	Boston	
has the third-strongest funding landscape in the world. 
Ecosystem Partners: TechHub and Techstars
"Boston is known to have a very loyal pool of 
talent, genuinely interested in a long and enriching 
engagement with the startup companies they join. 
And so they get rewarded with the amount of equity 
that reflects that deeper relationship expectation 
from both sides, founders and employees."
 
 Eveline Buchatskiy, Director, Techstars
"We solve real hard problems. Not just at MIT
this echoes around the whole ecosystem. We don't 
do consumer well. Some people think that's a 
weakness. I actually think thats a strength. Let the 
Bay Area do flashy mobile stuff while we focus on 
big problems and companies that are backed by 
hard science."
 
 Kyle Judah, Program Director at Martin Trust Center for 
MIT Entrepreneurship
Boston
"An increasing number of European and Israeli 
companies are moving to Boston. They are voting 
with their feet. New York is expensive and California 
is hard to recruit. Boston is a good mix of resources 
and personnel."
 
 Roger	Krakoff,	Managing	Partner	at	Cloud	Capital	Partners
49
 
N America Avg
$37.7bn
-19%
6.3x
N. America Avg
1.8
Silicon Valley
2.1
Silicon Valley
$264-323bn
North America Avg
4.1k
0.8
1.85-2.5
7%
18%
-1%
4%
36.2
35.5 2%
-3%
Female founders
29%
Founder age
34.7
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
85%
88%
0%
13%
Average seed round
Average Series A round
Dilution
15%
19%
19% 25%
$10-10.5M
30%
2%
Rounds with local only investors
60% 
61%
60% 0%
17%
35%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
Silicon Valley
North America Avg
299%
150%
0.8-0.95
3.7-4.6k
175%
34%
88%
20%
24% -16%
-16%
Silicon Valley
N. America Avg
Silicon Valley
N. America Avg
Silicon Valley
North America Avg
Silicon Valley
N. America Avg
$900-950k
$800-850k
$750-800k
$6.5-7M
$7-7.5M
-33%
-30%
14-19k
Growth Index4
2.7
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
$41.7-51bn
Europe Avg
-10%
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
Boston
Compass.co
50
 
$118k 8%
North America Avg
Silicon Valley
$91k -16%
Time to hire engineers
Software engineer salary
Remote employees
33%
43%
26%
$109k
30%
-22%
-19%
25%
Female employees
Foreign employees
33%
45%
32%
-2%
23%
29%
11%
59
40
48
Advisors with equity
Employees with startup experience
43%
Equity to employees
14%
8% -40%
1.92
Foreign Customers
Top target Markets
USA
China
India
33%
36%
37%
Number of product languages
1.6
1.8 12%
-32%
12%
2%
44%
48%
1%
-28%
1.38
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
10% -24%
37%
9%
13%
26%
2.2 34%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
12%
41%
Metropolitan GDP
$380bn
Silicon Valley
North America Avg $430bn
$535bn
Talent1
Market Reach1
Startup Experience1
Boston
Compass.co
51
 
Supporter & Policy Maker Insights
Immigration time
Local government rated positive
Top Policy Issues
25%
National government rated positive 
9%
Cost of living
Cost & availability of workspace
Immigration
1  % Delta to Regional Average, % Delta to Silicon Valley
Silicon Valley
North America Avg
Silicon V
N. America Avg
21
22.8 10%
0%
23%
28%
-7%
13%
18%
176%
11%
25%
21
Silicon Valley
North America Avg
1
"Boston has depth across the board, from funding ecosystem to 
engineering talent. It's a very balanced ecosystem. It is particularly strong 
in areas related to SaaS and all areas related to SaaS marketing, hard 
innovation, infrastructure, gaming and e-commerce. It's also super strong in 
biotech of course, where it's impact is much bigger than the size of the town 
would suggest. The is extremely high density of general ecosystem around the 
Kendall Square area, which is without a doubt one of the most vibrant hubs in 
the world."
 
 Fred Destin, Partner at Atlas Ventures
Boston
Compass.co
1
Tel Aviv
Israel
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
6
5
13
3
6
2.9
5
Intro
Tel Aviv is a prominent startup ecosystem in the global landscape, 
ranked #5 overall. The city has an exceptionally strong startup 
ecosystem with a well-balanced set of quality resources. With a 
Growth Index of 2.9, it is the third fastest growing among the top 
10 and second in Europe. It counts 3,100 to 4,200 active tech 
startups, making it the 7th largest overall and #2 in Europe after 
London. 
Tel Aviv ranked #2 in 2012 but has since dropped. This change in 
ranking is due in large part to improvements in our methodology 
which de-emphasized the metric of density of startups per capita 
(for more details see IV. Methodology).
Startups in Tel Aviv traditionally focused on areas such as 
enterprise IT, security, and networking technology. These startups 
were often based on cutting-edge technology developed in the 
Israeli	military.	Today's	entrepreneurs	are	engaged	in	far	more	
diverse sectors, such as ad-tech, eCommerce, big data, SaaS 
and much more. The success story of Wix - a cloud-based web 
development platform, which went IPO on the NASDAQ at a 
$750	million	 valuation	 two	 years	 ago	 -	 illustrates	 this	 broader	
diversification.
Tel	 Aviv's	 consistent	 innovation	over	 the	 last	 few	decades	has	
given it a strong international reputation among startup investors, 
and as such the ecosystem has plenty of capital at every stage 
of funding (Seed to Series C+), giving it a rank of #5 overall in 
funding. For this reason it comes as no surprise that 47% of all 
investment rounds include foreign investors, 38% more than 
European average. 
Due	to	renowned	universities	such	as	Tel	Aviv	University	and	the	
Israeli Defense Forces, local tech talent is abundant. While the 
inflow	of	 international	venture	capital	 is	strong,	the	integration	
of international talent remains weak (Israel has a 40% lower 
53
 
Selected Findings
Tel	Aviv	claims	the	#1	spot	outside	of	the	U.S.,	#3	
to #6 ranking in all Indexes except Market Reach.
With a 3.5x growth in exit values and 2x in VC 
investments, Tel Aviv achieves the third highest 
Growth Index in the top 10 (after Berlin and 
London). 
Tel Aviv startups attract more foreign capital than 
any other European ecosystem (38% more than 
the European average).
Tel	Aviv's	#13	ranking	in	Market	Reach	is	a	mixed	
story - while its local market presents a challenge 
(131% smaller than the European average and 
almost 3x smaller than Boston), its startups 
rank #1 in Global Market Reach, with twice the 
percentage of foreign customers of Silicon Valley.
Startups in Tel Aviv employ less females than 
Silicon Valley, but slightly more than the European 
average.
Tel Aviv has one of the best connected and 
experienced startup communities around 
the globe. 49% of all startup employees have 
previously worked in a startup (21% above the 
European average).
The ecosystem has the highest Startup Density 
in Europe (between 0.85-1.15 startups per 1,000 
inhabitants).
share of foreign employees than Silicon Valley). A more diverse 
workforce	may	increase	the	performance	of	Tel	Aviv's	startups.
Startups from Tel Aviv have had great success reaching customers 
in	 the	U.S.,	 Europe,	 and	 Asia.	 This	 led	 them	 to	 having	 the	 #1	
ranking in Global Market Reach, a sub-component of Market 
Reach where it ranks #13 overall due to its small local market. 
Many experts expect Tel Aviv to continue to increase its global 
impact especially in upcoming verticals such as the Internet of 
Things, Big Data, and Bitcoin.
Ecosystem	Partner:	Start-Up	Nation	Central
"I believe the phenomenal success of the hi tech 
sector in israel, is due to unique symbiosis between 
small, fast, nimble start ups and established large 
companies. As a result of rapid acquisitions, the 
economy benefits from the infusion of expansion 
capital, access to markets, strategic interests, 
management know how and technical back up. The 
acquired entrepreneurs then go on to immediately 
build new companies."
 
 Yossi Vardi, Investor
"With an extremely vibrant startup ecosystem, 
and ever strong technological talent  but a 
very small domestic market -- Israeli startups aim 
toward global markets from the day they launch. 
The presence of more than 270 multinationals, 
Tel Aviv
operating R&D centers in Israel, such as Apple, 
Google, and Facebook,  contributes to potential 
collaboration between Israeli start-ups and global 
players. "
 
 Inbal	Arieli,	VP	Strategic	Partnerships	at	Start-Up	Nation	
Central and Head of 8200 EISP
"In Israel, if you come with a big company's 
logo, your parents will ask you why you haven't 
started your own company. The dream in Israel is 
innovationit's to build a successful company. If 
you aren't running your own company, it's because 
you haven't found the right idea yet."
 
 Amir Shevat, Global Startup Outreach Program Manager 
at Google
"it's no wonder Tel aviv ranked highest among 
non US cities, with high similarity to the valley's 
culture and start up density. Yet, Tel Aviv enjoys an 
arbitrage in valuations and talent availability."
 
 Oded Hermoni, Venture Partner at Rhodium 
"We have 'chutzpah'drive, motivation, candid, 
anything to get to their goals and overcome their 
obstacles."
 
 Gil Sadis, VP of Product at BlazeMeter
54
 
Europe Avg
3.7
Silicon Valley
2.1
$12bn
Silicon Valley
$264-323bn
Europe Avg
$5-5.5M
Europe Avg
12%
46%
$6.5-7M
Europe Avg
-11%
89%
13%
Europe Avg
Europe Avg
Europe Avg
Silicon Valley
18%
-15%
24%
17%
0.6
Europe Avg
2.4k
Europe Avg
8%
3%
107%
Female founders
Founder age
33.6
Silicon Valley
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
100%
85%
Silicon Valley
17%
35%
-22%
Silicon Valley
117%
349%
Average seed round
Average Series A round
Dilution
21%
19%
19% -7%
$4.5-5M
-7%
Rounds with local only investors
-15%
3.1-4.2k
-35%
Silicon Valley
Silicon Valley
-44%
0.85-1.15
1.85-2.5
34.5
36.2
$700-750k
Silicon Valley
Europe Avg
$600-650k
$900-950k 28%
-17%
Silicon Valley
20%
Europe Avg
Silicon Valley
53% 
61%
66% 23%
15%
14-19k
Europe Avg
Silicon Valley
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
$23.7-28.9bn
Growth Index4
2.9
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
11x
-54%
Tel Aviv
Compass.co
55
 
10%
Europe Avg.
-16%
1.05
Europe Avg.
39%
Europe Avg.
Europe Avg.
2.4
Europe Avg.
Europe Avg.
30%
-9%
Europe Avg.
22%
Europe Avg.
26%
Europe Avg.
92%
$53.5k
-13%
Silicon Valley
$118k
Silicon Valley
Europe Avg.
-18%
40
-4%
47
Time to hire engineers
Software engineer salary
Remote employees
20%
43%
32%
Silicon Valley
$61k
119%
21%
Female employees
Foreign employees
27%
45%
Silicon Valley
24%
29%
Silicon Valley
Advisors with equity
Employees with startup experience
49%
Equity to employees
8%
Silicon Valley
-17%
Silicon Valley
1.26
Silicon Valley
Foreign Customers
Top target Markets
United States of America
China
India
74%
Number of product languages
2.2
Silicon Valley
48%
54%
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
49
67%
11%
Silicon Valley
36%
56%
-51%
-24%
2.6
-15%
-5%
-3%
-21%
-3%
Talent1
Market Reach1
Startup Experience1
Europe Avg $300bn 131%
Metropolitan GDP
$132bn
$535bn 305%
Silicon Valley
10%
Tel Aviv
Compass.co
56
 
20%
Europe Avg
24%
81 -10%
Immigration time
91
21
-77%
Local government rated positive
Top Policy Issues
0%
23%
National government rated positive
0%
11%
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
Silicon Valley
Europe Avg
Silicon V
Europe Avg
Silicon Valley
Cost of living
Cost & availability of workspace
Taxes
"A key lesson from Israel is that innovation is not just something that 
goes on inside companies; it comes from a wider culture that fosters both 
innovation and entrepreneurship. Israel is a country of immigrants  there 
are over 70 nationalities represented in this tiny country. Two out of every 
three Israelis are newcomers, or the children or grandchildren of newcomers. 
Immigrants are natural risk takers since they were willing to uproot themselves 
and start over."
 
 Orit Mossinson, General Partner at Globe International Holdings VC
Tel Aviv
Compass.co
1
London
United	Kingdom
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
5
12
3
7
13
3.3
6
Intro
London is in many ways the cultural and business capital of 
Europe and with the second fastest Growth Index in the top 10, 
has moved up in the rankings to #6 overall, from #7 in 2012. 
With an estimated Startup Output of 3,200 to 5,400 active tech 
startups	and	an	Ecosystem	Value	of	$44	billion,	 it	 is	the	fourth	
largest ecosystem in the world, and the largest in Europe.
Research by the government-funded startup initiative Tech City 
UK	predicts	that	London-based	tech	startups	will	create	around	
10,000 jobs in the second half of 2015.1 Success stories such 
as	Powa	Technologies	(valued	at	$2.7B)	and	Shazam	(valued	at	
$1B),	which	together	have	already	created	more	than	1,000	jobs	
in	the	United	Kingdom,	are	strong	indicators	for	the	actualization	
of this forecast.2
The London startup ecosystem stands out for its exceptional 
access	to	affluent	consumers	and	powerful	corporations,	solid	
funding landscape, and ambitious government initiatives. The 
ecosystem is a strong draw for world-class entrepreneurs and 
startup employees, with a ranking of #7 in Talent, because of 
its proven capacity to turn small-scale startups into globally 
dominant category leaders.
London's	rankings	 in	Market	Reach	 (#3)	and	Performance	 (#5)	
underscore the fact that this is an ecosystem that has come of 
age. In London, we see many hyper-growth startups in diverse 
sectors such as Media, Fashion, FinTech, and e-commerce.
The	ecosystem's	downsides	are	in	its	culture	and	labor	market.	
Many experts have noted that its culture lacks a fully authentic 
entrepreneurial spirit, with an aesthetic feeling similar to 
London's	 more	 established	 sectors.	 This	 is	 supported	 by	 our	
Startup Experience Index, which shows that, by and large, 
1	 20,000	New	Jobs	to	be	Created	by	UK	Tech	Investment	in	2015.	(2015,	May	29)
2 Austin, S. (2015)
58
 
Selected Findings
London	is	Europe's	largest	ecosystem,	above	Tel	
Aviv in number of startups, Ecosystem Value and 
exit value. 
London is the second fastest growing ecosystem in 
Europe, after Berlin and above Tel Aviv.
It ranks #3  in Market Reach and is the only 
ecosystem with a top 10 rank in both Local Market 
(#4 globally and #1 in Europe) and Global Market 
Reach (#4). Its startups count 50% of foreign 
customers on average, 12% above European 
average.
London is also the most diverse ecosystem in the 
world with 53% of foreign employees and 18% of 
female founders.
Seed and Series A investments are much higher 
than the European average (17% and 26% 
respectively).
London is very open to international Talent with a 
20% shorter immigration time than the European 
average.
23% of London-based founders gained previous 
experience in hypergrowth startups. This is the 
highest value in Europe (54% below Silicon Valley).
startups only give low amounts of equity to their mentors. To 
stay competitive in a hot labor market, London startups have 
been giving higher amounts of equity to employees compared 
to other startup ecosystems. London startups also compensate 
for the sub-optimal local hiring conditions by hiring 33% of 
their employees from remote locations, which is 44% above the 
European	regional	average.	It's	a	major	trend	for	startups	here	
to outsource engineering work to Eastern European countries 
such as Romania, which is only one timezone and a few hours 
flight	away.	
Ecosystem	 Partners:	 Centre	 For	 Entrepreneurs	 and	 StartUp	
Britain
 
"The international nature of London's startup 
ecosystem has always stood out, but the data here 
makes it even more apparent. As a result of this 
diversity, I have found the community is very open 
and welcoming and companies are thinking globally 
from day one."
 
 Jess Williamson, Director, Barclays Accelerator, powered by 
Techstars
"These findings provide strong analytical support 
to the common perception of London as the 
European city being as farthest ahead in overall 
ecosystem strength: from funding to consumer 
demand, and from international talent to diversity. 
But there is still a significant upside when compared 
to Silicon Valley. Other European cities would do well 
to study London's strengths."
 
 Yoram Wijngaarde, CEO at Dealroom.co
"The great challenge is to make London not feel 
debilitatingly expensive to live in. We need to create 
ways to isolate non-millionaires from the rat race of 
wealthy people who flock to London and buy large 
properties that they don't live in. Ideally, we'd be able 
to insulate the people who are building and running 
growth companies from the high priced property 
market."
 
 Alex Asseily, CEO at State, Chairman at Jawbone
London
59
 
Europe Avg
3.7
Silicon Valley
2.1
$12bn
Silicon Valley
$264-323bn
Silicon Valley
Europe Avg
$600-650k
$900-950k
Europe Avg
Silicon Valley
34.5
36.2
$5-5.5M
Europe Avg
Europe Avg
-5%
17%
Europe Avg
Female founders
Founder age
32.6
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
35%
13%
2.4k
-45%
Average seed round
Average Series A round
Dilution
19%
19%
19%
Rounds with local only investors
Europe Avg
Silicon Valley
Silicon Valley
Europe Avg
Silicon Valley
Europe Avg
Silicon Valley
609%
1.85-2.5
18%
Silicon Valley
32%
11%
6%
23%
93%
-8%
Silicon Valley
Europe Avg
Silicon Valley
$7-7.5M
$6.5-7M
-5%
1%
1%
-26%
Europe Avg
Silicon Valley
53% 
61%
66% 24%
15%
286%
3.2-5.4k
0.25-0.4
54%
-42%
0.6 84%
24%
85%
89%
14-19k
-5%
$700-750k
28%
-17%
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
$39.5-48.3bn
Europe Avg
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
Growth Index4
3.3
6.7x
-73%x
London
Compass.co
60
 
Europe Avg.
Europe Avg.
-15%
$53.5k
87%
Time to hire engineers
Software engineer salary
Remote employees
31%
21%
Female employees
Foreign employees
-44%
24%
-9%
Advisors with equity
Employees with startup experience
40%
Equity to employees
10%
8%
10% -2%
0.92
Silicon Valley
Foreign Customers
Top target Markets
United Kingdom
United States of America
China
50%
Number of product languages
2.2
-16%
19%
-2%
39%
48%
111%
15%
1.05
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
Silicon Valley
Europe Avg.
3%
40
20%
47
Silicon Valley
39
$63k
Silicon Valley
37 %
43%
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
53%
22%
29%
30%
45%
36%
56%
-29%
12%
2.3
2.4 6%
-5%
Europe Avg.
-16%
$118k
26
-17%
Talent1
Market Reach1
Startup Experience1
Metropolitan GDP
Europe Avg $300bn
-36%
-64%
Silicon Valley
$836bn
$535bn
London
Compass.co
61
 
81
Europe Avg.
20%
Immigration time
61
Local government rated positive
Top Policy Issues
9%
173%
169%
National government rated positive
10%
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
Europe Avg
Silicon Valley
Europe Avg
Silicon V
Silicon Valley
Cost of living
Cost & availability of workspace
National Laws
23%
24%
11%
92%
-66%
34%
4%
21
"These findings show that it is viable to have technology companies succeed 
outside the hub of Silicon Valley, making London an example for other would-
be technology hubs to emulate. It reinforces my choice of keeping London as 
our European base."
 
 Odera	Ume-Ezeoke,	CEO	&	Founder	at	Viewsy
London
Compass.co
Chicago
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
8
12
5
11
14
2.8
7
Intro
As	 the	 largest	 city	 in	 America's	 Midwest,	 Chicago	 is	 home	 to	
between 1,800-3,000 active tech startups and is now ranked 
#7 (up from #10 in 2012). Stakeholders including Mayor Rahm 
Emanuel, local investors, and 1871 (an incubator that is home to 
around 240 startups) have worked hard to measurably improve 
the local startup ecosystemand they have succeeded. Chicago 
now has more than 40,000 tech jobs, 15,000 of which have been 
created in just the last four years.1 Given the fact that Chicago 
has achieved the third highest Startup Output growth rate in this 
year's	ranking,	this	trend	is	likely	to	continue.
A	 key	 reason	 for	 Chicago's	 growth	 is,	 without	 a	 doubt,	 the	
exceptional success of a few local startups. Chicago is the 
birthplace of Groupon and GrubHub, and is currently home to 
over	ten	unicorns	-	startups	with	a	valuation	over	$1	billion.	 In	
the	case	of	Chicago,	the	high	density	of	such	startups	significantly	
accelerates the circulation of both wealth and proven expertise 
within	the	ecosystem.	Chicago's	startup	hub	also	benefits	from	
the	established	corporate	community,	which	 is	 reflected	by	 its	
ranking as the 5th strongest local market of all startup ecosystems.
For the time being, the relatively young startup ecosystem is 
inhibited by a still developing funding landscape. According to 
experts, its Series A investments are picking up in size and pace, 
but both seed and Series A investments are still a quarter below 
the North American average. Another area for improvement is 
in the startup culture. One data point we interpret as having a 
negative	effect	on	culture	is	the	limited	willingness	of	founders	to	
give equity to advisors and employees. Chicago-based founders 
give 81% less equity to their employees than the North American 
average.
Ecosystem Partner: 1871
1 Dallke, J. (2015
63
 
Selected Findings
Highest	Growth	Index	of	all	U.S.	ecosystems	and	
4th among the top 10, thanks to a 2.4x growth in 
VC investments and the 3rd fastest growth for # of 
startups.
Chicago's	best	index	ranking	is	#5	in	Market	Reach.	
While	its	startups	benefit	from	the	5th	largest	
local market among top 20 hubs, it trails in Global 
Market Reach, namely with a 66% lower proportion 
of foreign customers.
Chicago startups also operate in fewer languages 
than the regional average (-30%).
With 85% Chicago has the highest rate of 
exclusively local funding rounds in North America 
(40% above average).
Dilution is 23% higher than in Silicon Valley.
Chicago ranks #11 in Talent with good quality and 
availability - the time to hire a software engineer is 
12%	shorter	than	North	America's	average.	
With an average of 5%, Chicago startups provide 
the lowest equity share for their employees in 
North America (81% below average).
"Chicago is a heart-filled, thriving ecosystem of 
ingenuity and talent that can only be found in the 
bustling midwest. Often described as friendly and 
hard-working, your typical Chicago entrepreneur 
is solving problems across the board. Chicago 
is enjoying a business renaissance. I have been 
working and living in Chicago for nearly 30 years 
and I've never felt the city alive with so much energy 
as I do walking around this enchanted town."
 
 Don	Bora,	Partner/Owner	at	Eight	Bit	Studios
"I arrived in Chicago at the turn of the year 
from London, and was instantly welcomed 
into the startup community. The ecosystem in 
Chicago is supportive, enthusiastic and endlessly 
energetic. Dedicating time to help other people 
in the community is expected; sharing contacts, 
experiences and resources are the norm. The 
ecosystem is compact, open and full of innovation: 
an excellent breeding ground for investors and 
entrepreneurs."
 
 Gregory Kris, Serial Entrepreneur 
"The beauty of Chicago is that no individual 
sector accounts for more than 15% of its GDP. 
Chicago boasts the most diverse economy in the 
U.S., well-balanced across finance, manufacturing, 
healthcare, real estate, and technology. And that 
provides a fertile field for B2B sales-led models as 
well as related technologies to scale these industries 
online. While the city cannot compete with the best 
of Silicon Valley in terms of UX design or B2C growth 
hacking or any massive VC-led land grabs, we are 
also not beholden to such immediate investor return 
driven models. Indeed, the discipline forced on us in 
having to bootstrap or internally fund through client 
sales, the efficiency required for such bureaucratic 
alignment, and the patience afforded from our more 
humble cap tables actually provides a briar-patch 
type defense against all the new Silicon-Valley hot 
money start-ups."
 
 Christopher Nyren, Founder of Educelerate
Chicago
64
 
N America Avg
$37.7bn
1.8x
N. America Avg
1.8
Silicon Valley
2.1
Silicon Valley
$264-323bn
Silicon Valley
North America Avg
$6.5-7M
$7-7.5M
19%
25%
85 -15%
88% -12%
0.8
North America Avg
t 
ri
 v
Female founders
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
15%
4.1k
26%
38%
216%
0.2-0.3
Average seed round
Average Series A round
Dilution
Rounds with local only investors
30%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
1.8-3.0k
Silicon Valley
216%
775%
1.85-2.5
.
24% -19%
20% -33%
Silicon Valley
North America Avg
36.2
-3%
35.5
-5%
35% 141%
13% 17%
Silicon Valley
North America Avg
100%
Silicon Valley
North America Avg
$650-700k
$900-950k
$800-850k
Silicon Valley
North America Avg
Silicon Valley
North America Avg
24%
85%
19% -19%
19% -22%
61% -28%
60% -29%
$5.5-6M
775%
37.5
Ecosystem value2
Growth Index4
$18.6-22.7bn
2.8
14-19k
Funding 1
Demographics1
Performance & Growth1
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
14x
Startup output3
Startup density5
Chicago
Compass.co
65
 
North America Avg
$91k
0%
North America Avg
Silicon Valley
Time to hire engineers
Software engineer salary
Remote employees
26%
$105k
12%
Female employees
Foreign employees
43
40
48
Advisors with equity
Employees with startup experience
42%
Equity to employees
5%
0.98
Foreign Customers
Top target Markets
United States of America
Canada
United Kingdom
23%
Number of product languages
1.8
-6%
14%
3%
44%
97%
41%
1.38
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
Silicon Valley
North America Avg
Silicon Valley
12%
-14%
$118k
43% 66%
26%
-11%
0%
North America Avg
Silicon Valley
26%
29%
29%
North America Avg
Silicon Valley
27%
68%
45%
21%
32%
59%
66%
36%
37%
55%
30%
Silicon Valley
North America Avg
Silicon Valley
North America Avg
1.4
2.2
Silicon Valley
North America Avg
Silicon Valley
North America Avg
48%
Silicon Valley
North America Avg
81%
10%
52%
8%
Talent1
Market Reach1
Startup Experience1
Metropolitan GDP
Silicon Valley
North America Avg
$604bn
$535bn
$430bn
-11%
-30%
Chicago
Compass.co
66
 
Immigration time
Local government rated positive
Top Policy Issues
National government rated positive
16%
Formation and training of software engineers
Taxes
Cost of living
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
21
21
22.8 10%
0%
Silicon Valley
North America Avg
24%
Silicon V
North America Avg
16%
Silicon Valley
N. America Avg
21
23%
-2%
28% 19%
11%
-32%
25% 59%
"As a transplant from San Francisco, I have had the pleasure of watching 
Chicago really come into it's own. When I first arrived here in the early 2000's, 
the tech entrepreneurial community was reeling from the dot come crash and 
a negative sentiment from the media and local bloggers. There wasn't much 
swagger here. But what it did have is a strong core of people who believed in 
what was possible. The JB Pritzkers, The Steve Millers, the Matt McCalls, Mayor 
Daley, David Weinstein and all of the other believers. And the entrepreneurs 
started to emerge, companies like GrubHub, Cleversafe and Groupon came 
on to the scene and the entrepreneurial community started to get some 
mojo. Then entrepreneur support organizations like 1871 and more capital 
(both from the coasts and locally) the new Mayor reinvigorated City and 
State involvement (as contributors and supporters) and then some successes 
started to happen, with exits like Braintree, GrubHub and Groupon. While 
that was going on, the bigs started to step up with companies like Google, 
Microsoft, Cysco and locals like Walgreens and Execlon all started to dabble in 
the local tech/ entrepreneurial scene. More and more entrants like Techstars 
and Impact Engine with their mounds of experienced entrepreneurs like Troy 
Henikoff and Sam Yagan spent more and more time focused locally and 
giving back. Now there is a thriving community that isn't trying to be Silicon 
Valley or Silicon Alley, but has it's own identity, with it's own ecosystem that 
is turning the Chicagoland area into a force. It's been excited to witness the 
transition I have seen over the past 10+ years."
 
 Chuck Templeton, Founder of OpenTable
Chicago
Compass.co
Seattle
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
12
11
12
4
3
2.1
8
Intro
Seattle has a deep history of software expertise due to the 
prominence of local companies like Microsoft and Amazon. Our 
research	suggests	that	Seattle's	cluster	is	currently	home	to	1,500	
and 2,200 active tech startups. Although Seattle dropped four 
positions from #4 in 2012 overall to #8 in 2015, Seattle remains 
a vibrant place for tech entrepreneurship. 
The	 state's	 Employment	 Security	 Department	 (ESD)	 estimates	
that around 12% new job growth1 has been created during the 
last	2	years	in	Seattle's	tech	space.	This	growth	has	been	spurred	
by recent success stories such as PayScale and Attachmate, as 
well as tech powerhouses from Silicon Valley such as Google, 
Facebook and Apple, opening fast-growing second	 offices	 in	
Seattle.
Seattle's	 startup	 ecosystem	 ranks	 #4	 for	 Talent	 and	 offers	 a	
higher concentration2 of software developers than any other 
tech	 region	within	 the	U.S.	Compared	 to	 their	peers	 in	Silicon	
Valley, startups in Seattle resort 85% less often to hiring remote 
employees. Also, many Silicon Valley entrepreneurs relocate 
to Seattle due to high living costs and rising salaries. Based on 
Seattle's	geographic	proximity	to	Silicon	Valley	and	its	lower	cost	
for engineering talent, Seattle has become an attractive option 
for talented startup entrepreneurs and the tech-savvy workforce 
alike3.
Seattle's	 weak	 spot	 is	 funding.	 While	 it	 is	 sufficient	 to	 fund	 a	
major share of promising early stage startups, a lack of big VC 
funds causes a noticeable gap of later-stage investmentsa 
key reason why the Seattle ecosystem is not among the global 
elite in 2015. Competing ecosystems like Boston or Los Angeles 
experienced 2.5x and 3.3x higher VC investments, respectively, 
1 Kalning, K. (2015, January 9)
2 Partovi, H. (2015)
3 Cook, J. (2015)
68
 
Selected Findings
Seattle ranks #12 in Performance and #11 in 
Funding. 
At 2.1, its Growth Index is slower than average and 
similar	to	Silicon	Valley's	despite	fast	growth	rates	
in both exit value and VC investments.  Its Startup 
Output growth is second to last among the top 20.
Seattle ranks #3 in Startup Experience and #4 in 
Talentin line with its long history of tech success.
It ranks #12 in Market Reach because of its smaller 
local market and comes in with a next-to-last 
finish	in	the	Global	Market	Reach	sub-index,	with	
71% less foreign customers than North American 
average.
Series A rounds are 20% lower than regional 
average.
While	on	average	one	out	of	five	founders	in 
North America are female, it is only one in  
ten in Seattle.
With more than two equity compensated advisors 
on average, Seattle-based startups have the 
highest regional average.
in	2013	and	2014.	However,	Seattle's	venture	capital	is	growing	
40%	faster	than	the	U.S.	average,	so	the	funding	gap	is	likely	to	
narrow in the future.
Ecosystem Partners: Microsoft Ventures and TechAlliance
"Seattle has transformed over the last 12 to 18 
months. There has been an influx of fresh talent and 
less brain drain to Silicon Valley, with Facebook, 
Dropbox, Uber, Google and others opening offices in 
Seattle. Being just a 2 hour flight away from Silicon 
Valley, Seattle offers a great alternative for founders. 
They benefit from the close proximity to investors in 
SV and the lower cost, great talent plus high living 
standard in Seattle." 
 
 Jon Staenberg, Founder and CEO at Hand of God Wines
"Seattle is a dynamic technology community, 
anchored by large players such as T-Mobile, 
Amazon, Expedia, and Microsoft, as well as a 
thriving startup ecosystem that has spawned 
companies such as Zillow, Zulily, and Tableau. It 
is not a surprise that people from Californiaand 
elsewhereare locating to Seattle. It is quite simply 
a more pleasantand cheaperplace to live. A 
recent report by Seattle real estate company Redfin 
found that Seattle is increasingly being chosen in 
searches by Bay Area residents who are looking for 
new homes."
 
 John Cook, Co-Founder at GeekWire
Seattle
69
 
N America Avg $37.7bn
N. America Avg
1.8
Silicon Valley
$264-323bn
0.8
Europe Avg
59%
341%
Silicon Valley
N. America Avg
1.85-2.5
98%
Silicon Valley
14-19k
Silicon Valley
2.1
Female founders
9%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
26%
1.5-2.2k
N. America Avg
4.1k
-51%
0.4-0.6
.
Silicon Valley
N. America Avg
24% 176%
126%
20%
39.4
Silicon Valley
North America Avg
36.2
-8%
35.5
-10%
Silicon Valley
North America Avg
35%
-34%
35%
17%
Silicon Valley
North America Avg
80%
7%
85%
10%
88%
Average seed round
Average Series A round
Rounds with local only investors
North America Avg
$900-950k
$800-850k
Dilution
Silicon Valley
$800-850k
10%
0%
Silicon Valley
North America Avg
$6.5-7M
$7-7.5M
14%
20%
$5.5-6M
Silicon Valley
North America Avg
Silicon Valley
North America Avg
22%
78%
19% -10%
19% -13%
61% -21%
60% -23%
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
Startup output3
Growth Index4
2.1
Startup density5
$12.2-14.9bn
22x
2.8x
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Seattle
Compass.co
70
 
North America Avg
$91k
12%
Foreign Customers
Top target Markets
22%
1  % Delta to Regional Average, % Delta to Silicon Valley
21%
North America Avg
Silicon Valley
Time to hire engineers
Software engineer salary
Remote employees
21%
Female employees
Foreign employees
-27%
Silicon Valley
North America Avg
Silicon Valley
-14%
$118k
43% 101%
26%
North America Avg
Silicon Valley
26%
26%
29%
North America Avg
Silicon Valley
24%
85%
45%
33%
32%
55
-13%
48
40
$105k
13%
0%
71%
63%
36%
37%
Silicon Valley
North America Avg
Number of product languages
40%
17%
Silicon Valley
North America Avg
1.6
2.2
1.8
United States of America
China
India
North America Avg
-35%
1.38
44%
Advisors with equity
Employees with startup experience
40%
Equity to employees
8%
Silicon Valley
48%
-9%
1.94
20%
9%
15%
1
North America Avg
Silicon Valley
North America Avg
Silicon Valley
2.12
10%
-45%
-34%
$430bn
N. America Avg
$535bn
Silicon Valley
82%
45%
Metropolitan GDP
$294bn
Talent1
Market Reach1
Startup Experience1
Seattle
Compass.co
71
 
North America Avg
North America Avg
Immigration time
21
21
23
Silicon Valley
North America Avg
Local government rated positive
Top Policy Issues
35%
-19%
Silicon Valley
-33%
National government rated positive
35%
Silicon V.
1  % Delta to Regional Average, % Delta to Silicon Valley
28%
23%
11%
23%
0%
10%
-28%
-69%
Taxes
Cost & availability of workspace
Cost of living
Supporter & Policy Maker Insights1
"Seattle is an amazing city with rich culture and expanding opportunities 
that are creating tremendous fast-paced growth resulting in housing, traffic, 
and cultural challenges. We are the cloud computing capital of the world, 
with many additional thriving tech sectors, while having to import talent to fill 
the growing number of tech jobs available. Initiatives are underway to create 
more tech education for underserved minorities and women to fill this gap, 
and we realize these are good problems to have."
 
 Brett Greene, CEO at New Tech Seattle
Seattle
Compass.co
1
Berlin
Germany
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
7
8
19
8
8
10
9
Intro
After	 a	 decade	 of	 slow	 growth,	 Berlin's	 tech	 scene	 has	 grown	
very fast since 2010 and was the fastest growing hub in 2014. 
It was ranked #15 in 2012 and is now #9 in 2015. According to 
our data, Berlin is home to between 1,800 to 3,000 active tech 
startups.	By	2020,	Berlin's	 startups	 could	potentially	 create	 as	
many as 40,000 new jobs.1 
Startups in the Berlin ecosystem have historically been successful 
in markets like eCommerce, gaming, and marketplaces, with new 
startups showing potential in other verticals such as SaaS and 
adtech. A strong creative scene and low living costs have resulted 
in	a	soaring	inflow	of	national	and	international	tech	talent.	
Berlin's	 weak	 spots	 have	 traditionally	 been	 the	 vibrancy	 of	
its funding landscape and lack of exits. Yet its recent history 
has more than reversed that trend. With two back-to-back 
IPOs	 above	$6	billion	 in	 the	 Fall	 of	 2014	 (Rocket	 Internet	 and	
Zalando), an exponential growth in exit volume due to startups 
like Sociomantic, Wunderlist, and Quandoo, and more than 2x 
growth in VC investment, there is no doubt the Berlin is on its 
way into the upper echelon of startup ecosystems.2
By	surpassing	the	$2	billion	mark	in	VC	investments,	the	ecosystem	
attracted even more growth capital than London last year. This 
amount, however, was raised by a few rapidly scaling startups 
such	as	Delivery	Hero	(~$520	million)	and	does	not	lead	to	the	
conclusion	 that	 Berlin's	 funding	 landscape	 has	 come	 of	 age.	
Experts argue that the rigid regulatory investment environment, 
as	well	 as	 a	weak	 local	 exit	market	 curb	 Berlin's	 growth.	 As	 a	
consequence it remains a challenge to raise late-stage funding 
in	 Berlin.	 Berlin's	 startup	 ecosystem	 has	 established	 a	 strong	
national pull. Its next emerging step is to become more of an 
international attraction.
1 McKinsey Berlin. (2013)
2 Valerio, D. (2015)
73
 
Selected Findings
Berlin tops our Growth Index among all measured 
ecosystems with a maximum score of 10, (twice 
that of #2-ranked Bangalore), thanks to an 
explosion in exits and VC investments.
Berlin's	VC	investments	ranked	#2	in	Europe,	just	
behind Tel Aviv, and #8 among the top 20.  
Berlin has the second highest Startup Experience 
in Europe, with a 20% higher percentage of 
employees with prior experience in a startup and 
the highest number of advisors with equity in 
Europe (yet still 51% below Silicon Valley average).
It	ranks	third	among	Europe's	six	top	20	hubs	in	
Global Market Reach, namely due to a 19% lower 
proportion of foreign customers.
With 49% foreign and 27% female employees, 
Berlin is the most gender equal and second most 
diverse ecosystem in Europe.
Berlin's	dilution	rate	is	10%,	which	is	only	about	
half of the European average (19%).
Berlin-based Software engineers earn less than 
half	of	their	Silicon	Valley	counterparts	(~$60,000	
vs.	~$120,000).
Ecosystem Partners: Microsoft Ventures, Gruenderszene, and 
TechBerlin
"Being situated in its geographical centre, Berlin 
has become the beating heart of the European 
startup community. A colorful and vibrant city, 
where tech innovators, digital entrepreneurs and the 
creative class are jointly creating great international 
startups."
 
 Marius Sewing, CEO in Residence at Microsoft Ventures 
Accelerator Germany
"Times are changing and capital is following 
the talent, so that there are more and more local 
financing sources available on the ground in Berlin. 
I would argue that you can now raise a good Seed 
(a few hundred thousand to million-ish) or a smaller 
Series A round (up to 2-3 million) entirely in Berlin 
and this from people who really know what they are 
doing and can be helpful."
 
 Pawel Chudzinski, Managing Partner at Point Nine Capital
"The Berlin ecosystem is going to continue to 
mature. With the next batch of successful exits, 
capital will finally flow to Berlin in an order of 
magnitude that matches the city's wealth of ideas. 
Once the funding ecosystem comes anywhere close 
to what exists in London or Silicon Valley, Berlin will 
experience another phase of transformative growth."
 
 Hannes Klpper, CEO at iversity
Berlin
74
 
Europe Avg
3.7
Silicon Valley
2.1
$12bn
Silicon Valley
$264-323bn
Europe Avg
Silicon Valley
Europe Avg
$600-650k
$900-950k 74%
13%
Europe Avg
86%
17%
35%
13%
Silicon Valley
Europe Avg
Silicon Valley
158%
14%
8%
Silicon Valley
Europe Avg
Silicon Valley
Europe Avg
204%
14%
24%
85%
89%
Europe Avg
0.6 20%
Europe Avg
$550-550k
Average seed round
362%
Silicon Valley
1.85-2.5
579%
Silicon Valley
14-19k
Female founders
9%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
12%
1.8-3.0k
-2%
0.35-0.6
31.8
95%
2.4k
34.5
36.2
$5-5.5M
Europe Avg
Average Series A round
Silicon Valley
$5.5-6M
$6.5-7M 21%
-7%
Dilution
10%
19%
19%
Rounds with local only investors
Europe Avg
Silicon Valley
90%
92%
Europe Avg
Silicon Valley
64% 
61%
66% -3%
-4%
-11%
-7%
Funding 1
Demographics1
Performance & Growth1
Startup density5
Startup output3
$24.7-30.2bn
Ecosystem value2
Growth Index4
10
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
11x
-56%
Berlin
Compass.co
75
 
Top target Markets
United States of America
Germany
United Kingdom
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
Europe Avg.
Europe Avg.
$53.5k
Time to hire engineers
Software engineer salary
Remote employees
26%
Female employees
Foreign employees
27%
Silicon Valley
Europe Avg.
-19%
40
-6%
47
Silicon Valley
50
$60k
Silicon Valley
63 %
43%
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
49%
22%
29%
30%
45%
$118k
26
Advisors with equity
Employees with startup experience
Equity to employees
12%
8%
10% -21%
1.28
Silicon Valley
Foreign Customers
47%
Number of product languages
2.2
-3%
-20%
39%
48%
51%
-18%
1.05
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
36%
56%
-24%
19%
2.9
2.4
-16%
-16%
Europe Avg.
-33%
96%
-11%
-2%
10%
-17%
-9%
-40%
49%
$300bn
$535bn
Silicon Valley
274%
113%
Metropolitan GDP
$143bn
Europe Avg
Talent1
Market Reach1
Startup Experience1
Berlin
Compass.co
76
 
1  % Delta to Regional Average, % Delta to Silicon Valley
81
Europe Avg.
r
 
.
20%
Immigration time
Local government rated positive
Top Policy Issues
39%
National government rated positive
Europe Avg
Silicon Valley
Europe Avg
Silicon V
Silicon Valley
Local regulations
National Laws
Taxes
23%
24%
11%
-46%
-75%
-2%
-71%
21
-40%
-39%
37%
83
Supporter & Policy Maker Insights1
"Berlin stood out a long way for us when we were looking for a place 
to establish SoundCloud, not least for the fact that it offers such a vibrant 
intersection of artistic creativity and technological knowledge. The city 
operates very much on a mantra of 'going your own way'; a counterculture 
mind set that embodies the startup spirit of looking at the world differently 
and trying to do something better. We are always hearing about fresh ideas 
and interesting opportunities cropping up across the city, and the network of 
fellow startups we're proud to be a part of makes our working lives that bit 
more interesting every day."
 
 Alexander Ljung, Founder & CEO at SoundCloud
Berlin
Compass.co
Singapore
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
11
9
9
20
9
1.9
10
Intro
Singapore	 is	 known	 for	 being	 one	 of	 the	world's	 top	 financial	
centers, and increasingly as the premier startup launchpad of 
Southeast Asia. Its business friendly environment is a fertile 
ground for startups, with 2,400-3,600 active tech startups calling 
the city-state home.  Singapore climbed seven ranks to become 
Asia-Pacific's1	first	ecosystem	to	the	top	10	of	our	ranking.
Stakeholders	agree	that	the	government's	support	of	Singapore's	
startup ecosystem played a major role in its rapid development. 
Initiatives include tax incentives for startups and investors 
and	 government	 funds.	 The	 government's	 sizable	 $1	 billion	
Technopreneurship	Investment	Fund	offers	up	to	$2	million	per	
startup. This program attracted entrepreneurs from the entire 
APAC region and other parts of the world.2 Paired with its strong 
VC community, in a class of its own in Southeast Asia, Singapore 
makes rank #9 in the Funding Index. 
Singapore's	geographic	location	and	deep	business	relationships	
with	booming	Asian	markets	means	local	startups	benefit	from	
access	 to	 affluent	 consumers	 and	 multinational	 corporations	
to scale their business. Recent success stories such as Garena, 
valued	 at	 above	 $2	 billion	 in	 an	 investment	 by	 a	 Canadian	
pension fund, showcase the scaling abilities of this ecosystem. It 
also highlights its international attraction: investors, startups and 
accelerators	open	offices	 in	Singapore,	 confirming	 its	place	as	
Asia's	central	startup	hub	and	contributing	to	its	top	10	ranking	
in Startup Experience.  
Singapore	enjoys	a	significant	inflow	of	talent,	yet	it	is	still	difficult	
for	startups	to	find	experienced	software	engineers	because	of	
the competition of larger companies and a culture that does not 
value risk-taking.
1 excluding China, South Korea and Japan
2 Youn, S. (2015)
78
 
Selected Findings
At 1.9 Singapore had one of the lowest Growth 
Index among the top 10 despite above average 
growth in exit value, mainly due to anemic growth 
in VC investments.
Nevertheless Singapore still ranks #9 in Funding, 
second only to Bangalore in the APAC region.
Singapore ranks #9 in Market Reach, mostly 
because of its strong global scaling performance. 
49% of its customers are located abroad, which is 
the highest value for the APAC region.
More than 52% of all Singapore startup employees 
are foreign born (46% above APAC average).
Talent	is	Singapore's	biggest	bottleneck	(ranked	at	
#20). It takes 17% longer to hire an engineer than 
in Silicon Valley and salaries are higher than in the 
rest of the APAC region.
With 1.27 mentors per startup (26% above 
regional average), Singapore has the highest 
number of advisors with equity in the region. 
With 10% equity to employees, Singapore has the 
highest share in the APAC region (14% above the 
regional average).
Ecosystem Partners: Infocomm Investments, Startupbootcamp, 
TechInAsia, and The Innovators Institute 
"Singapore is one of the easiest place in the world 
to start a business, and is in the backyard of a very 
exciting South-East Asia region. I feel like a kid in a 
sandbox."
 
 Zhihan Lee, Co-Founder and CEO at BagoSphere 
"There has never been a better time to be an 
entrepreneur in ASEAN, and specifically in Singapore 
- the past few years has seen a huge influx of
investor money, incubators/accelerators, and
corporate venturing fuelling the startup ecosystem.
Many founders and startups like to set up here, due
to the strong government support and business-
friendly environment for technology startups.
Although a company's headquarters may be based
in Singapore, the real market opportunity actually
lies in the surrounding emerging economies and
their large growing middle class, e.g. Indonesia,
Thailand, the Philippines. A region of 80m
households."
 
 Peng	Ong,	Managing	Director	at	Monk's	Hill	Ventures
"Singapore has always asked the question "How 
can we stay competitive?". The country that is purely 
dependent on import of any of its resources gets 
it. And so the start-up ecosystem gets similar levels 
of attention from both the local government & 
ventures, attracting the third largest VC investments 
in the APAC region, after China & Japan. Singapore 
for many is the "easy" gateway to (South-East)Asia. 
The legal, financial, political...virtually any stability of 
the country is infamous - literarily everything works. 
The strategic proximity to all the surrounding super-
fast growing markets, such as Indonesia (population 
250m people) adds to this. So it's no surprise all the 
hubs for the once US startups are based here (from 
Uber and Airbnb, to Facebook or Google)."
 
 Tomas Laboutka, Co-Founder and CEO at HotelQuickly
"Singapore is well-positioned to be the leading 
FinTech Hub for South-East Asia, given the access 
to key decision makers in financial institutions, 
the expertise of mentors and investors. Because 
Singapore has deep business relationships with 
all Asian countries, startups can leverage these 
corridors and scale efficiently in the region. The 
challenges lay in talent." 
 
 Markus Gnirck, Co-Founder & Global COO at 
Startupbootcamp FinTech
Singapore
79
 
Ecosystem value2
Growth Index4
APAC Avg
2.7
Silicon Valley
2.1
Silicon Valley
APAC Avg
$400-450k
$900-950k 82%
-7%
APAC Avg
-23%
15%
35%
11%
Silicon Valley
APAC Avg
Silicon Valley
24%
3%
-8%
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
24%
85%
95%
APAC Avg
0.4
-31%
APAC Avg
Average seed round
Average Series A round
Dilution
19%
0%
Rounds with local only investors
61%
68%
302%
Silicon Valley
1.85-2.5
456%
Silicon Valley
14-19k
Female founders
19%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
2.4-3.6k
-23%
0.45-0.65
35
90%
2.3k
32.4
36.2
Silicon Valley
APAC Avg
$4-4.5M
$6.5-7M
$4-4.5M
63%
-4%
22%
Silicon Valley
APAC Avg
17%
-10%
-22%
67% 
Silicon Valley
APAC Avg
10%
258%
8%
-6%
5%
-8%
2%
$450-500k
Funding 1
Demographics1
Performance & Growth1
Startup density5
Startup output3
$5.9bn
Silicon Valley
$264-323bn
APAC Avg
$11.8-14.4bn
22x
-55%
1.9
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Singapore
Compass.co
80
 
Silicon Valley
APAC Avg
1.8 2%
21%
2.2
Silicon Valley
APAC Avg
36%
41%
-28%
-18%
Silicon Valley
ACAC Avg
45%
28%
APAC Avg
Silicon Valley
57 %
43%
22
-20%
11%
-13%
-13%
-46%
APAC Avg
$44k
Silicon Valley
$118k
Silicon Valley
APAC Avg.
40
46
Time to hire engineers
Software engineer salary
Remote employees
28%
$36.5k
Female employees
Foreign employees
26%
23%
Foreign Customers
Top target Markets
United States of America
China
Indonesia
49%
Number of product languages
1.8
-17%
1  % Delta to Regional Average, % Delta to Silicon Valley
48
-6%
222%
20%
29%
APAC Avg
Silicon Valley
52%
52%
1.94
Advisors with equity
Employees with startup experience
42%
Equity to employees
8%
1.27
Silicon Valley
14%
-13%
37%
48%
-26%
.94
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg.
APAC Avg
9%
-14%
-16%
10%
Talent1
Market Reach1
Startup Experience1
$210bn
$535bn
Silicon Valley
64%
-37%
Metropolitan GDP
$327bn
APAC Avg
Singapore
Compass.co
81
 
Europe Avg.
APAC Avg.
Silicon Valley
-72%
5%
21
79
19%
APAC Avg
Silicon V
11% 125%
308%
APAC Avg
Silicon Valley
23%
20%
225%
183%
Immigration time
Local government rated positive
Top Policy Issues
National government rated positive
Cost of living
Workspace
Immigration
1  % Delta to Regional Average, % Delta to Silicon Valley
7%
5%
75
Supporter & Policy Maker Insights1
"Singapore turns 50 this year. If it was a company, it would probably be 
one of the most remarkable entrepreneurial success in recent history. In this 
sense, I think the basic tenets of entrepreneurship such as innovation and 
hard work have always been part of the Singapore DNA. After a generation 
of infrastructure development and wealth accumulation, I think Singapore 
is ready to project its dynamism into the region, especially with plans to 
integrate the huge and growing economies of South East Asia."
 
 Danny Tan, CEO at HipVan
"Singapore is a perfect symbiosis of high quality of living and 
entrepreneurial activity. The uptick of entrepreneurship over the past five years 
has been phenomenal. Singapore's ecosystem is spearheading the region 
including dozens of large VC funds, many incubators and accelerators, and 
most importantly a lot of local and international talent willing to join the ride."
 
 Rico Wyder, RVP of Product at Tickled Media
Singapore
Compass.co
1
Paris
France
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
13
13
6
16
15
1.3
11
Intro
Paris has the second largest GDP for any metropolitan region in 
Europe	and	incorporates	one	of	the	continent's	largest	dedicated	
business district: La Dfense. As the government has begun to 
acknowledge the importance of tech startups, the availability of 
public grants, subsidies, and loans has increased. The French 
capital boasts of between 2,400 and 3,200 active tech startups 
and has maintained its #12 rank.
Parisian entrepreneurs have a reputation for building dominant 
startups in industries such as EdTech, the sharing economy, 
collaborative	consumption,	and	artificial	intelligence.	
Two	 of	 the	 ecosystem's	 recent	 success	 stories	 are	 Criteon	
(worth	 more	 than	 $2B)	 and	 BlaBlaCar	 (undisclosed	 valuation,	
but expected to be the next French billion dollar company1). It is 
because of these and many other great startups that Paris-based 
entrepreneurs	are	beginning	to	attract	attention	from	U.S.-based	
venture	capitalists.	For	example,	Fred	Wilson	of	Union	Ventures	
did	his	first	French	investment	in	La	Ruche	Qui	Dit	Oui,	and	Palo	
Alto-based The Hive just invested in Snips.net. 
With	only	$1	billion	in	VC	investments,	an	influx	of	capital	is	much	
needed,	and	particularly	so	for	later-stage	funding.	Finally,	Paris'	
weakest indicator is not funding, but Talent (#19)despite the 
high-quality	 education	 system.	 The	 city's	 best	 engineers	 tend	
to	 favor	 large,	 stable	 employers	 rather	 than	 fledgling,	 or	 even	
established startups. 
Ecosystem	 Partners:	 France	 Digital,	 TheFamily,	 NUMA,	 and	 50	
Partners
1 Picker, L., & David, R. (2015)
83
 
Selected Findings
Paris'	Growth	Index	is	the	second	lowest	in	the	top	
20. It exhibits anemic growth in Startup Output
and exit value, and a surprising 7% reduction in VC
investments.
It ranks a notable #9 in Market Reach, with the 4th 
largest local market among the other top 20 hubs, 
but a 33% lower percentage of foreign customers 
than European average.
Seed rounds are 13% higher than the regional 
average, but Series A are 30% lower. 
Paris ranked #16 in Talent, placing it in the lower 
tier in both quality and availability. Time to hire 
an engineer is  the longest in Europe (14% above 
regional average and 26% above Silicon Valley 
average). 
Only 22% of employees are from abroad (35% 
below regional average), resulting in little diversity.
"In the last 5 years the Parisian startup scene 
simply boomed. From 1 accelerator in 2009 there 
are now more than 50 incubators verticalized on 
every sectors. ... Being an entrepreneur in Paris is no 
more anecdotical!"
 
 Mava Tordo, Co-Founder and Head of Blue Factory
"Paris is the 'techiest' hub in Europe, with a lot of 
Internet of Things, Big Data and Artificial Intelligence 
companies being created each year."
 
 Rand Hindi, CEO at Snips 
"Unicorns like Criteo and BlaBlaCar are still an 
exception for the Parisian tech scene, but they 
represent a larger entrepreneurial movement which 
is taking over French society. While there are still 
many challenges to overcome, this new generation 
is making entrepreneurship the new politics. With 
top-quality engineering schools, a booming network 
of experienced entrepreneurs and a growing supply 
of capital from local and international funds, Paris 
has all it needs and it's well on its way to becoming a 
tech powerhouse."
 
 Erika Batista, Head of Partnerships at TheFamily
"In Paris we don't have oil, but we do have 
startups! Thanks to billion dollar valuations like 
Blablacar and Deezer, the Parisian tech ecosystem 
has seen a boost both in volume and quality of 
new projects. The government is also pushing the 
ecosystem along with financial incentives, making 
France a fiscal paradise for innovative companies."
 
 Clment Alteresco, Co-Founder and CEO at Share Your 
Office	/	Bureaux	A	Partager
"As there so few investors, in France, that take 
risks with the entrepreneurs at the beginning of their 
Journey, we have developped an art of the startup 
bootstrapping."
 
 Jean Francois Ruiz, CNO and CMO at PowerOn
"Because Entrepreneur is a French word, as well 
as Revolution."
 
 Maurice Gopikian, Co-Founder and President at Orevon
Paris
84
 
35%
69%
Silicon Valley
Europe Avg
$600-650k
$900-950k
-13%
Europe Avg
-17%
17%
35%
13%
Silicon Valley
Europe Avg
Silicon Valley
15%
7%
2%
Silicon Valley
Europe Avg
Silicon Valley
Europe Avg
624%
172%
24%
85%
89%
Europe Avg
0.6 141%
Europe Avg
Average seed round
831%
Silicon Valley
1.85-2.5
488%
Silicon Valley
14-19k
Female founders
21%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
5%
2.4-3.2k
-15%
0.2-0.25
33.9
94%
2.4k
34.5
36.2
$5-5.5M
Europe Avg
Average Series A round
Silicon Valley
$4-4.5M
$6.5-7M
30%
Dilution
19%
19%
Rounds with local only investors
Europe Avg
Silicon Valley
-43%
-42%
Europe Avg
Silicon Valley
73% 
61%
66% -10%
-16%
-9%
-6%
$650-700k
34%
Ecosystem value2
Growth Index4
Startup density5
Startup output3
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Europe Avg
3.7
Silicon Valley
2.1
$12bn
Silicon Valley
$264-323bn
Europe Avg
Funding 1
Demographics1
Performance & Growth1
$9.9-12.1bn
27x
9%
1.3
Paris
Compass.co
85
 
43
1  % Delta to Regional Average, % Delta to Silicon Valley
Top target Markets
United States of America
France
China
1.94
Europe Avg.
Europe Avg.
$53.5k
Time to hire engineers
Software engineer salary
Remote employees
24%
Female employees
Foreign employees
24%
Silicon Valley
Europe Avg.
-26%
40
-14%
47
Silicon Valley
54
$53k
Silicon Valley
79 %
43%
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
22%
22%
29%
30%
45%
$118k
26
Advisors with equity
Employees with startup experience
Equity to employees
8%
10% 47%
1.11
Silicon Valley
Foreign Customers
42%
Number of product languages
2.2
19%
-2%
39%
48%
74%
-6%
1.05
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
36%
56%
-15%
33%
2.8
2.4
-13%
-22%
Europe Avg.
26%
122%
1%
8%
24%
7%
103%
35%
40%
7%
Talent1
Market Reach1
Startup Experience1
$300bn
$535bn
Silicon Valley
-25%
-57%
Metropolitan GDP
$715bn
Europe Avg
Paris
Compass.co
86
 
1  % Delta to Regional Average, % Delta to Silicon Valley
81
Europe Avg.
r
 
.
20%
Immigration time
Local government rated positive
Top Policy Issues
23%
National government rated positive
Europe Avg
Silicon Valley
Europe Avg
Silicon V
Silicon Valley
23%
24%
11%
-23%
-71%
16%
-58%
21
1%
2%
26%
70
Cost & availability of workspace
Taxes
Attractiveness of ecosystem to foreign investors
Supporter & Policy Maker Insights1
"You certainly know Paris. City of lights, museums, cafs, restaurants and 
romantic getaways. Let us face it: startup is not in this list and unicorns 
don't seem to drink from the Seine river. But the city that gave the word 
'entrepreneur' and the engineer Eiffel to the world knows a thing or two when 
it comes to revolutions. The change that I have witnessed from the front line in 
the last 15 years has been spectacular. Champions have arisen: Free Telecom, 
Vente-prive, Parrot, Criteo, Blablacar, ... and the seeds are so much more 
abundant and the roots much deeper. You can now, every single day, attend 
a good tech, english speaking, event, in the city of cheese and unpolite waiters. 
The young generation dreams of electronic sheeps and every single student I 
met recently was considering to go for the entepreneurial journey sometimes, 
and quite soon if possible. France is now the number one country in Europe 
for VC investments. And if one swallow does not make a summer, I guess a few 
first tier US VCs now hunting in Paris is a strong sign. A french proverb says 
"Paris has not been built in one day". Silicon Valley neither I guess. And all the 
great cities and ecosystems in the world Tel Aviv, London, Berlin, Stockholm, 
New York, ... don't wait for us. From my experience, the only metrics that 
counts is acceleration. And I know Paris is moving fast these days. I am sure it 
will pay and give you one more reason to visit Paris next time."
 
 Stphane Distinguin, Founder and CEO at FABERNOVEL
Paris
Compass.co
Sao Paulo
Brazil
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
9
13
11
19
19
3.5
12
Intro
Sao Paulo is the economic capital of Latin America. The city has 
around	20	million	people	and	is	a	vibrant	cultural	and	financial	
hub	with	more	 than	$2	billion	 in	daily	 trade	on	 its	 local	 stock	
exchange.	Although	affected	by	Brazil's	economic	downturn,	this	
previously fast-growing ecosystem moved up one position (from 
#13 in 2012) and is currently home to around 1,500-2,700 active 
tech startups. With a Growth Index of 3.5 it was the third fastest 
growing ecosystem in the top 20.
Notably, 2014 VC investments were higher than in Seattle and 
just below Tel Aviv. The active VC climate is highlighted by notable 
Silicon Valley funds like Redpoint Ventures and 500 Startups. 
However, the majority of venture capital funds have limited long-
term	experience,	having	only	started	their	first	investment	cycle	
after 2009.
Sao Paulo boasts the best talent of any South American startup 
ecosystem.	 Recent	 success	 stories	 like	 Dafiti,	 Netshoes,	 and	
EasyTaxi have inspired more talent to reconsider the corporate 
career path and see entrepreneurship as a viable alternative. 
Sectors such as eCommerce and SaaS remain strong in Sao Paulo, 
while new startups with more innovative business models are 
beginning	to	gain	traction	in	the	fields	of	mobile,	marketplaces,	
and services. 
Finally, the recent economic downturn, combined with the lack of 
exits,	have	lowered	investor	confidence	in	the	ecosystem.		Other	
key challenges include its relative high costs, bureaucracy, and 
its burdensome transportation system. As the city gears up to 
position itself not just as the Latin American startup capital, but a 
top 10 ecosystem, overcoming these problems will be essential. 
Ecosystem Partners: Startup Brazil, Startup Farm, and ABStartups
88
 
Selected Findings
It ranks #7 in Funding. The average seed funding 
amount is half of Silicon Valley, and Series A is 14% 
lower. Despite the presence of some marquee 
international institutional investors, 86% of all 
investment rounds count only local investors.
Sao Paulo ranks #11 in our Market Reach index 
due to the size of its local and cultural markets.  It 
captures the last spot in Global Market Reach with 
its startups counting only 18% foreign customers.
At 7%, the proportion of foreign employees is the 
third lowest in the top 20.
Sao Paulo ranks #19 in Startup Experience. The 
average number of mentors with equity per 
startup is less than one (1.94 in Silicon Valley). 
The proportion of employees with prior startup 
experience is 73% lower than in Silicon Valley.
"Sao Paulo congregates the main factors for a 
successful startup ecosystem, including the highest 
concentration of startups, PE/VCs, angel investors, 
and global companies in the LatAm region." 
 
 Guilherme Junqueira, Executive Manager at Brazilian 
Startups Association
"There is a lot of opportunity in Brazil. We have 
big problems like education, health, etc, that can be 
fixed by startups. It is a huge local market."
 
 Gustavo Caetano, CEO at SambaTech
"The main barrier holding back more capital 
flowing into startups is the supply of good 
entrepreneurs with good ideas."
 
 Felipe Matos, CEO at Startup Farm
Sao Paulo
89
 
Ecosystem value2
Growth Index4
S America Avg $7.9bn
-50%
14%
Silicon Valley
S America $200-250k
$900-950k
S America
-10%
12%
35%
13%
Silicon Valley
S America
Silicon Valley
87%
14%
0%
Silicon Valley
S America
Silicon Valley
S America
179%
6%
85%
85%
0.1 17%
Average seed round
2079%
1.85-2.5
687%
14-19k
Female founders
13%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
1.5-2.7k
-29%
0.05-0.15
31.7
81%
1.5k
31.8
36.2
$5-5.5M
S America
Average Series A round
Silicon Valley
$6-6.5M
$6.5-7M
-9%
Dilution
19%
19%
Rounds with local only investors
S America
Silicon Valley
-22%
-25%
S America
Silicon Valley
86% 
61%
-10%
-28%
5%
6%
$450-500k
25%
S America Avg
Silicon Valley
S America Avg
Silicon Valley
13%
102%
-52%
24%
77%
Funding 1
Demographics1
Performance & Growth1
Startup density5
Startup output3
South America Avg
3.0
Silicon Valley
2.1
3.5
Silicon Valley
$264-323bn
19x
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
$14.1-17.3bn
Sao Paulo
Compass.co
90
 
Time to hire engineers
Software engineer salary
Remote employees
25%
43%
31%
$118k
$26.7
-3%
36%
Female employees
Foreign employees
18%
29%
21% -2%
Advisors with equity
Employees with startup experience
Equity to employees
5%
8%
5%
Foreign Customers
Top target Markets
Brazil
United States of America
China
36%
28%
Number of product languages
2.2
1.9
-2%
73%
126%
61%
-3%
-5%
14%
31%
1  % Delta to Regional Average, % Delta to Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
41
$28.4k
315%
74%
26%
-5%
7%
22%
501%
146%
18%
93%
51%
15%
-3%
1.9
28%
0.86
40
40
45%
48%
1.94
0.82
Talent1
Market Reach1
Startup Experience1
$290bn
$535bn 24%
-33%
Metropolitan GDP
$431bn
South America Avg
Silicon Valley
Sao Paulo
Compass.co
91
 
26%
20%
Immigration time
21
77
Local government rated positive
Top Policy Issues
23%
National government rated positive
11%
Taxes
Local regulations
Cost & availability of workspace
1  % Delta to Regional Average, % Delta to Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
South America Avg
Silicon Valley
15%
7%
56%
75%
53%
185%
-64%
37%
57
Supporter & Policy Maker Insights1
"Although it's new, the Brazilian startup ecosystem evolved rapidly, 
combining the best of mature markets with high quality local entrepreneurs 
and talent. It's just the beginning of solid landscape here." 
 
 Everson Lopes, Brazilian Venture Capitalist
Sao Paulo
Compass.co
1
Moscow
Russia
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
17
15
8
2
20
1
13
Intro
Russia's	capital	city	accounts	for	about	22%	of	the	Russian	GDP	
and is home to 2,300 to 3,800 active tech startups. Moscow 
moved up by one position in our ranking (from #14 in 2012), but 
recent	political	and	economic	turmoil	has	considerably	affected	
its growth. It has the lowest Growth Index in the top 20, with very 
slow to no growth recorded across the board.
Entrepreneurship has become trendy and aspiring founders 
have opportunities to form talented teams, secure VC funding, 
and test new business models locally (Moscow is #8 in Market 
Reach). Success stories that majorly contributed to the 
development of the Moscow ecosystem are Yandex, the Russian 
version of Google, and Mail.ru, which went public in 2010 and 
2011	respectively,	raising	$2	billion	in	total	capital.	Despite	these	
successes, Moscow still falls far short in exit value and ranks 
only 17 in Performance Index, despite having the tenth highest 
number of startups.
Moscow's	higher	education	infrastructure	feeds	the	ecosystem	
with some of the best software engineers in the world, namely 
taking the top spot in the TopCoder challenge. Yet, annual 
software engineer salaries are just a fraction of those in mature 
ecosystems.		With	salaries	averaging	less	than	$40,000	per	year,	
employing a software engineer in Moscow is 75% cheaper than 
in	Silicon	Valley,	a	difference	that	was	accelerated	by	the	Ruble's	
plunge at the end of last year. Combined with a 24% faster time 
to hire, these factors explain why Moscow ranks #2 in Talent. 
Access to funding has arguably improved in recent years. 
Historically, investments were concentrated in late stage funding 
rounds, while earlier stage startups had poor access to capital. 
This funding gap decreased in 2011, when numerous startup 
education programs, coworking spaces, and venture funds 
appeared. 
93
 
Selected Findings
Moscow has the third largest Startup Output 
among	Europe's	top	20,	but	the	lowest	Ecosystem	
Value.
Its very low immigration success rate (9%) 
underlines why Moscow has the lowest proportion 
of	foreign	employees	in	Europe	with	only	5%	(1/6th	
the	European	average	and	1/9th	of	Silicon	Valley).
Moscow ranks #8 in Market Reach thanks to a 
large local and national market, and despite a 
#15 ranking in Global Market Reach. Its average 
proportion of foreign customers (31%) is 
significantly	below	the	European	average	(45%).
Initiatives	 such	 as	 the	 $2.7	 billion	 strong	 Skolkovo	 Innovation	
Center1 and the Internet Initiatives Development Fund (IIDF) 
have	been	particularly	influential.	With	regards	to	foreign	venture	
capital, the high percentage (80%) of investment rounds with 
local-only	investors	underscores	the	fact	that	the	political	conflict	
has led many international investors to withdrawing their funds. 
Moscow has many areas with room for improvement, especially 
their Startup Experience, where they rank last among the top 20. 
Its startups count the lowest number of advisors in the world and 
give 49% less equity to their employees compared to startups in 
the rest of Europe. 
Ecosystem Partners: #tceh, IIDF, and Russian Ventures Company
"We currently see the first generation of venture 
capitalists and tech entrepreneurs here in Moscow. 
The latter are educated and ambitious but often 
lack the skills to scale their business beyond the local 
market."
 
 Gulnara Bikkulova, Capital and Market Access Programs 
Director and Executive Board Member at RVC
"The startup boom is really here. In the last several 
years we saw a lot of amazing companies who had 
appeared on the market in marketing technologies, 
fintech, security, sales automation and e-commerce 
startups. The Russian startup market is very active, 
1  Strong, R. (2015)
crowded and one of the most developed in Europe - 
but few people know."
 
 Maxim Chebotarev, Head of Business Angels Department 
at Internet Initiatives Development Fund (IIDF)
"We had pretty bad consumer product and service 
design during the Soviet union period. That's why 
many good companies are built around 'better' 
customer experience"
 
 Igor Khmel, Managing Director at Sberbank Digital 
Ventures
"The Russian startup-scene is relatively young. 
But it has a growing number of mature innovative 
companies who can successfully compete on global 
level. Recent political changes, fallen ruble and 
decreased purchasing power of russian customers 
are forcing more and more startups to think 
globally. Talented engineers, managers, office spaces 
with new ruble exchange rate are very affordable. 
Venture capital availability is better than ever and 
even government is trying to support innovative 
projects with number of different programs. A new 
chapter of russian startup life is opening."
 
 Michael Balakin, Managing Director Russia at sociomantic 
labs
Moscow
94
 
Ecosystem value2
Growth Index4
Europe Avg
3.7
Silicon Valley
2.1
$6.5-7M
$5-5.5M 40%
82%
Silicon Valley
Europe Avg
13%
36.2
34.5 8%
Startup density
40%
161%
Female founders
17%
24%
17% 1%
Silicon Valley
Europe Avg
Founder age
32
Silicon Valley
Europe Avg
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
90%
85%
89%
-1%
Silicon Valley
Europe Avg
14%
35%
13% -2%
Silicon Valley
Europe Avg
0.6 263%
Silicon Valley
Europe Avg
1.85-2.5 1300%
$14-19bn 445%
2.4k
Silicon Valley
Europe Avg
8%
$900-950k
$600-650k
Silicon Valley
Europe Avg
66%
22%
 0.1-0.2
2.3-3.8k
$550-600k
Seed funding
Series A funding
Dilution
16%
19%
19% 22%
Silicon Valley
Europe Avg
$3.5-4M
21%
Rounds with local only investors
80% 
61%
66% -18%
Silicon Valley
Europe Avg
-5%
-23%
Funding 1
Demographics1
Performance & Growth1
Startup output3
1.0
$12bn
Silicon Valley
$264-323bn
Europe Avg
62x
2.5x
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
$4.3-5.2bn
Moscow
Compass.co
95
 
Time to hire engineers
Software engineer salary
Remote employees
33%
43%
26% -22%
Silicon Valley
Europe Avg
$36.6k
$118k
$53.5
29%
54%
46%
222%
56%
Silicon Valley
Europe Avg
Female employees
Foreign employees
5%
45%
30% 536%
Silicon Valley
Europe Avg
19%
29%
22% 18%
Silicon Valley
Europe Avg
30
40
47
Silicon Valley
Europe Avg
Advisors with equity
Employees with startup experience
37%
Equity to employees
5%
8%
10% 97%
Silicon Valley
Europe Avg
69%
Silicon Valley
Europe Avg
0.48
Silicon Valley
Europe Avg
Foreign Customers
Top target Markets
United States of America
Russia
China
31%
36%
56% 83%
Silicon Valley
Europe Avg
16%
Number of product languages
2.6
2.2
2.4
-6%
Silicon Valley
Europe Avg
-15%
32%
860%
30%
6%
39%
48%
204%
119%
1.05
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
Talent1
Market Reach1
Startup Experience1
-45%
$300bn
Europe Avg
$535bn
Silicon Valley
-3%
$553bn
Metropolitan GDP
Moscow
Compass.co
96
 
Local government rated positive
National government rated positive
Supporter & Policy Maker Insights1
24%
Europe Avg
20%
Europe Avg
Immigration time
50
21
81 63%
Silicon Valley
Europe Avg
-59%
Top Policy Issues
16%
23%
44%
Silicon Valley
42%
11%
11%
77%
Silicon V.
-4%
Cost of living
Cost & availability of workspace
Taxes
1  % Delta to Regional Average, % Delta to Silicon Valley
"The crisis has changed the startup ecosystem in Moscow. Now 
entrepreneurs have fewer opportunities to raise money. They have to take 
greater risks. That is why many young high potentials prefer to be employed 
by big international or government owned companies than to found a 
startup. Unfortunately, some of the brightest minds choose to move to the 
Silicon Valley, Singapore or EU and start a company there. But it does not 
mean that startup ecosystem has been destroyed. Great companies with 
best teams can survive in Moscow. Entrepreneurs got to find the way to use 
crisis as an opportunity to make money. People in Russia are trying to save 
more money on products and services and startups are trying to help them. 
IT is the best way to decrease the costs for many of the offline services and if 
entrepreneur does it well, he/she will get as much money as he/she needs."
 
 Alena Popova, CEO at Gov2Project
If you are in a fancy bar in Moscow, it's cool to tell to a girl that you are 
an Internet entrepreneur. You can hear startup pitches all around when 
having a breakfast and there are more accelerators than startups to fit them. 
Tough the funding capabilities (even the local ones) have seriously decreased 
during the sanctions war. Looks like a good motivator for Russians to make 
something outside of Russia.
 
 Alex Alpern, CEO & Founder at Webinar-COMDI
Moscow
Compass.co
Austin
USA
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
16
14
18
5
2
1.9
14
Intro
Austin's	 tech	 sector	 originally	 formed	 due	 to	 the	 presence	 of	
industry	giants	such	as	Dell	and	IBM.	The	city's	startup	ecosystem	
steadily formed as an outgrowth of that gravitation center, and 
over the last decade has managed to develop a diverse portfolio 
of startups engaged in hardware, software, and software services. 
The cluster consists of 1,600 to 2,200 active tech startups and 
now ranks #14 overall. 
Recent success stories include HomeAway (market cap of 
around	 $2.84	 billion)	 and	 RetailMeNot	 (market	 cap	 of	 around	
$850	million),	which	have	together	created	over	5,000	new	jobs.	
Thanks to these and other successful exits Austin ranked #13 
in exit value. However Austin trails in the Funding Index with an 
18th position in VC investments, especially due to lower-stage 
funding.
Austin's	 consistent	 performance	 in	 the	 tech	 sector	 has	 led	 to	
a tech-savvy workforce, counting over 100,000 people, a high 
number considering its 1.8 million population. As local talent is 
not only skilled but also slightly cheaper than the North American 
average, the startup ecosystem ranks #6 in Talent. Yet, Austin 
supply can still not keep up with demand. A recent study by the 
Austin Technology Council pointed out that the local demand 
for skilled tech workers will outpace supply by more than 2,000 
people each year1.		This	figure	is	also	in	line	with	our	numbers	for	
the average amount of time it takes to hire tech talent in Austin, 
21% longer than the Silicon Valley average. Austin ranks #2 on 
our Startup Experience Index due to a proportion of employees 
with prior startup experience even higher than Silicon Valley 
(52% vs. 48%) and a high average number of advisors. 
Ecosystem Partners: Techstars and Central Texas Angel Network
1	 An	Assessment	of	the	Workforce	Pipeline	in	Austin's	Technology	Sector.	(2015)
98
 
Selected Findings
In	Market	Reach	Austin	ranks	last	among	U.S.	
ecosystems in the top 20 due to its small local 
market and low Global Market Reach score. It 
has the second lowest percentage of foreign 
customers (24%) and second-lowest number of 
product languages at 1.4.
Seed funding in Austin is 8% higher than the 
regional average. Series A, is 18% lower than the 
regional average, indicating a funding gap.
The Startup Density in Austin is 25% higher than 
the North American average. 
"The talent and mentor network in Austin is 
growing both in size and sophistication. Capital 
Factory & Techstars are leading Austin's second 
coming, creating great companies, and setting the 
stage for an explosive future."
 
 Colin Anawaty, Co-Founder at Patient IO
Austin
99
 
Ecosystem value2
Growth Index4
N America Avg $37.7bn 4.4x
$6.5-7M
$7-7.5M 18%
13%
Silicon Valley
North America Avg
-1%
36.2
35.5
-3%
65%
94%
Female founders
15%
24%
20% 35%
Silicon Valley
North America Avg
Founder age
36.6
Silicon Valley
North America Avg
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
87%
85%
88% 2%
Silicon Valley
North America Avg
18%
35%
17% -6%
Silicon Valley
North America Avg
$14-19bn 755%
4.1k
Silicon Valley
-8%
$900-950k
$900-950k
$800-850k
Silicon Valley
North America Avg
2%
111%
$900-950k
Seed funding
Series A funding
Dilution
30%
19%
19% -37%
Silicon Valley
North America Avg
$6-6.5M
-35%
Rounds with local only investors
60% 
61%
60% 0%
Silicon Valley
North America Avg
-2%
2%
Funding 1
Demographics1
Performance & Growth1
Startup density
0.8
-25%
Silicon Valley
North America Avg
1.85-2.5 107%
 0.85-1.2 
Startup output3
Silicon Valley
$264-323bn
$7.7-9.4bn
34x
N. America Avg
1.8
Silicon Valley
2.1
1.9
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
1.6-2.2k
North America Avg
Austin
Compass.co
100
 
Time to hire engineers
Software engineer salary
Remote employees
18%
43%
26% 49%
Silicon Valley
North America Avg
$97k
$118k
$91
146%
-5%
-6%
21%
23%
Silicon Valley
North America Avg
Female employees
Foreign employees
14%
45%
32% 134%
Silicon Valley
North America Avg
24%
29%
26% 9%
Silicon Valley
North America Avg
51
40
48
Silicon Valley
North America Avg
Advisors with equity
Employees with startup experience
52%
Equity to employees
8%
8%
10% 18%
Silicon Valley
North America Avg
-1%
Silicon Valley
North America Avg
2.04
Silicon Valley
North America Avg
Foreign Customers
Top target Markets
United States of America
China
24%
36%
37% 58%
Silicon Valley
North America Avg
51%
Number of product languages
1.4
2.2
1.8 33%
Silicon Valley
North America Avg
59%
-21%
226%
-9%
-17%
44%
48%
-5%
-32%
1.38
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
301%
$430bn
N. America Avg
$535bn
Silicon Valley
405%
$106bn
Metropolitan GDP
Talent1
Market Reach1
Startup Experience1
Austin
Compass.co
101
 
Local government rated positive
National government rated positive
28%
North America Avg
25%
N. A. Avg
Immigration time
21
21
22.8
-10%
Silicon Valley
North America Avg
0%
Top Policy Issues
33%
23%
-15%
Silicon Valley
-30%
33%
11%
-25%
Silicon V.
-68%
Cost & availability of workspace
Cost of living
Formation and training of software engineers
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
"The fact that Series A investments are relatively low in Austin should signal 
opportunity to the venture community. There are great companies in Austin 
and low competition for these investments locally."
 
 Jason Seats, Managing Director at Techstars Austin
Austin
Compass.co
Bangalore
India
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
10
6
20
17
12
4.9
15
Intro
Bangalore,	 India's	 third	 most	 populous	 city,	 has	 emerged	 as	
the startup capital of India. The city is home to approximately 
3,100 to 4,900 active tech startups and has achieved the second 
highest growth rate for exit volume and VC investment among 
the top 20. As a result, Bangalore moved up four positions to 
#15 in 2015, advancing from #19 in the 2012 ranking.
Most	notably,	Bangalore's	 venture	capital	 investments	 in	2014	
amounted	to	approximately	$2.25	billion,	growing	4x	to	land	at	
#7 among the top 20. 
The ecosystem, which has historically been known as 'the 
world's	 back	 office',	 has	 transformed	 	 itself	 into	 a	 high-octane	
environment	that	offers	early-stage	startups	the	opportunity	to	
turn into billion dollar companies. Recent success stories such as 
Flipkart and InMobi are part of the unicorn club with valuations 
beyond	$1	billion.	Their	success	helps	inject	wealth	and	expertise	
into the ecosystem. This in turn increases the attention of the 
international	 investor	 community,	 who	 are	 eager	 to	 find	 high	
potential startups. 
Bangalore	 has	 a	 solid	 pipeline	 of	 cost-efficient	 Talent,	 ranking	
#17.	 Our	 data	 shows	 that	 Bangalore-based	 startups	 benefit	
from the second lowest time to hire, and software engineering 
salaries	that	are	below	$25,000	annually.	However,	the	analysis	
also suggests the average quality of the local talent is not yet on 
par with the elite startup ecosystems around the world.
Ecosystem Partners: Microsoft Ventures and TLabs
103
 
Selected Findings
Bangalore has approximately 3,100 to 4,900 active 
startups, making it the largest ecosystem in India.
Its #6 ranking in Funding results from a 4x growth 
in VC investments, the fastest pace of VC growth 
among the top 20. 
Average seed funding amount is low (27% below 
APAC1 average) while Series A investments are 
slightly above APAC average.
Ranking #17 in Talent, Bangalore ranks among 
the lowest in quality, but with a dramatic cost 
advantage	(~$25,000	vs.	~$120,000	in	Silicon	
Valley).
It ranks #12 in Startup Experience. Compared to 
Silicon Valley, the ratio of employees with previous 
startup experience is 18% lower while the number 
of advisors with equity is less than half.
Bangalore-based startups give 7% equity to 
employees - 30% lower than regional average.
With a median age of 28.5 years, Bangalore is 
home to the youngest entrepreneurs in the region 
(14% below regional and 27% below Silicon Valley 
average). 
1 Not including China, South Korea and Japan
"I believe Bangalore is easily the best place to 
startup in India right now. There is easy access to 
capital and a relative abundance of talented youth 
who are passionate about working for startups. 
More importantly, being in India puts us at the heart 
of a very large market where the demand for new 
solutions is growing faster than anywhere else in the 
world. In addition, there are two more advantages 
that nicely compliment the large market - 1. You can 
prototype new solutions, both technology driven and 
otherwise, even with an extremely low budget. This 
allows you to experiment rapidly and perfect your 
solution without losing too much time or money 
before scaling up. 2. The Indian market is so large, 
diverse and complex that if you can make a solution 
work reliably across India, you can make it work 
anywhere else in the world. And oh, Bangalore also 
has the best weather among all the big cities in 
India. Trust me, it counts for more than you think."
 
 Amruth BR
"What makes Bangalore so special is the people 
here. The locals form just 30% of the population and 
are very friendly and hospitable and the immigrants 
add to the culture fusion. Bangalore has always 
been the Science and Technology capital, including 
Space and Avionics. It is also home to the largest 
number of engineering colleges (within city limits) in 
the world - so the availability of quality talent with 
an innovation mindset has made Bangalore an 
ideal environment for starting up. Also large sets of 
returning Silicon Valley-experienced Indians choose 
Bangalore, which adds to the availability of an 
internationally experienced talent pool. Almost all of 
the Indian VCs have an office here. Average cost of 
living in Bangalore is definitely cheaper than Delhi/
NCR or Mumbai and people just love the Bangalore 
weather!"
 
 Chandan Raj, COO at YourStory
Bangalore
104
 
APAC Avg
$400-450k
Silicon Valley
$900-950k 170%
37%
APAC Avg
37%
15%
35%
11%
Silicon Valley
APAC Avg
Silicon Valley
122%
27%
14%
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
-12%
159%
-20%
24%
85%
95% -2%
APAC Avg
0.4
-20%
APAC Avg
$300-350k
Average seed round
Average Series A round
Dilution
19%
Rounds with local only investors
61%
68%
Silicon Valley
1.85-2.5
313%
Silicon Valley
14-19k
Female founders
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
3.1-4.9k
-43%
0.35-0.6
96%
2.3k
32.4
36.2
Silicon Valley
APAC Avg
$4-4.5M
$6.5-7M
$4-4.5M
68%
-1%
18%
Silicon Valley
APAC Avg
17%
10%
-5%
Silicon Valley
APAC Avg
28.5
14%
57% 
7%
18%
11%
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
Growth Index4
APAC Avg
2.7
Silicon Valley
2.1
$5.9bn
Silicon Valley
$264-323bn
APAC Avg
$11.9-14.5bn
22x
-55%
4.9
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
Bangalore
Compass.co
105
 
Top target Markets
India
United States of America
United Arab Emirates
1.94
APAC Avg
APAC Avg
$44k
Time to hire engineers
Software engineer salary
Remote employees
16%
Female employees
Foreign employees
Silicon Valley
APAC Avg.
3%
40
18%
46
Silicon Valley
39
$23.5k
Silicon Valley
175 %
43%
Silicon Valley
ACAC Avg
Silicon Valley
ACAC Avg
2%
29%
45%
$118k
22
Advisors with equity
Employees with startup experience
Equity to employees
7%
8%
Foreign Customers
Number of product languages
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg.
36%
41%
23%
28%
9% 30%
26%
40%
65%
30%
401%
87%
18%
2288%
1390%
33%
9%
24%
1.6
48%
37%
41%
18%
-10%
0.8
Silicon Valley
APAC Avg
1  % Delta to Regional Average, % Delta to Silicon Valley
35%
2.2
14%
1.8
.
143%
.94 18%
$210bn
$535bn
Silicon Valley
1089%
356%
Metropolitan GDP
$45bn
APAC Avg
Talent1
Market Reach1
Startup Experience1
Bangalore
Compass.co
106
 
APAC Avg.
Immigration time
Local government rated positive
Top Policy Issues
National government rated positive
APAC Avg
Silicon Valley
APAC Avg
Silicon V
Silicon Valley
Cost & availability of workspace
Local regulations
Taxes
23%
20%
11%
-68%
22%
21
79
18%
21%
32%
15%
-49%
-8%
64
19%
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
"India should be the world's next hub for tech startups  we should see 
billion dollar exits. We have big markets, talent, growth, technology and 
mindset. In the next few years we should see a dramatic change in the types of 
companies and types of exits that we create." 
 
 Sanjay Jain, Partner at GSF India
Bangalore
Compass.co
Sydney
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
20
16
17
6
10
1.1
16
Intro
Sydney is home to 1,500 to 2,300 active tech startups and half 
of	Australia's	500	largest	companies.	Due	to	its	position	as	the	
second lowest on the Growth Index within the top 20, and its 
comparably weak statistics around Performance, Funding, and 
Market, Sydney now ranks #16 (down from #12 in 2012). Still, the 
ecosystem is clearly capable of producing dominant startups, 
as Atlassian, Campaign Monitor, and recently Freelancer.com 
demonstrate. Cumulatively, these three startups already add up 
to	a	market	capitalization	of	around	$3.5	billion.
Around	 two-thirds	 of	 Australia's	 startup	 activity	 takes	 place	 in	
Sydney, and almost half of all employees have prior experience 
in a startup (only 4% below SIlicon Valley).1 
Despite the relatively high cost of software engineers in Sydney 
(around	 $88,500),	 the	 quality	 and	 availability	 of	 tech-savvy	
talent helped Sydney rank #6 in Talent overall. Stakeholders in 
the	 ecosystem	highlighted	 that	 Sydney's	 popularity	 inside	 and	
outside the country helps the ecosystem access young, capable, 
and diverse talent.
Sydney still faces challenges in Market Reach (#17) and Funding 
(#16). The availability of later-stage venture capital is a key 
bottleneck, a dynamic that can be attributed to the traditionally 
risk-averse	Australian	investment	culture.	Despite	a	rising	inflow	
of	U.S.	capital,	this	lack	of	funding	currently	hurts	Sydney's	growth	
and its Performance Index (#20). A recent report by StartupAUS 
makes a strong plea for government interventions - similar to 
the	 successful	measures	 taken	 by	 governments	 in	 the	United	
Kingdom, Israel, and Singapore, which among other things, could 
help solve the sub-optimal funding environment2. 
Ecosystem Partners: Pollenizer and Deloitte, Australia
1  PricewaterhouseCoopers. (2013)
2 Turner, A. (2015)
108
 
Select Findings
Sydney's	Startup	Experience	ranks	#10,	thanks	
to advisors with equity and founders with 
hypergrowth experience at 21% and 30% higher 
than the APAC average, respectively.
Average seed investments are by far the highest 
in APAC, while average Series A amounts are 42% 
lower than the regional average.
Sydney has the highest engineer salaries in the 
region, 50% above regional average, but still 33% 
lower than Silicon Valley.
It ranks #17 in Market Reach, with a relatively small 
local market, and comes in at 11th place in Global 
Market Reach, thanks to an average of 40% foreign 
customers (almost equal to the regional average).
Equity shared with employees is 20% higher than 
in Silicon Valley and 18% above regional average, 
reflecting	the	open	and	collaborative	nature	of	
local entrepreneurs.
"The Sydney ecosystem is now vast. There are 
thousands of people making great startups with 
evidence that we can make global businesses. As the 
city grows we struggle with a very high cost of living 
which drives up the cost of talent and generally 
makes it harder for people to commit to sustained 
periods in a new venture."
 
 Phil Morle, CEO at Pollenizer
"Australia has a great trajectory of organic growth 
of our Australian Ecosystem with companies like 
Seek and REA worth more than a billion dollars. 
However we're lacking government packages to 
accelerate maturation, which have already been 
implemented by other similar countries such as 
New Zealand, the UK and Canada. There's serious 
competition for Australia's best and brightest 
entrepreneurs and as noted recently by Australia's 
Chief Scientist, Professor Ian Chubb, Australia is one 
of only three countries in theOECD without a science 
or innovation strategy."
 
 Peter	Bradd,	CEO	and	Founding	Director	at	StartupAUS
"Sydney-based entrepreneurs have great access 
to early-stage deal flow opportunities whereas Series 
A rounds represent a real challenge. Here many 
startups face higher fund raising cliff risk. U.S. VC 
houses have become increasingly active in our 
market but only starting at the Series B $10 million 
investment level."
 
 Joshua Tanchel, Partner at Deloitte Private
Sydney
109
 
NOT DONE
Silicon Valley
APAC Avg
$400-450k
$900-950k 18%
-40%
APAC Avg
6%
15%
35%
11%
Silicon Valley
APAC Avg
Silicon Valley
71%
-10%
-20%
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
-15%
125%
-30%
24%
85%
95% -5%
APAC Avg
0.4
-9%
APAC Avg
$750-800k
Average seed round
Average Series A round
Dilution
19%
Rounds with local only investors
61%
68%
431%
Silicon Valley
1.85-2.5
761%
Silicon Valley
14-19k
Female founders
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
1.5-2.3k
20%
0.3-0.5
100%
2.3k
32.4
36.2
Silicon Valley
APAC Avg
$2.8-3M
$6.5-7M
$4-4.5M
140%
42%
13%
Silicon Valley
APAC Avg
17%
52%
32%
Silicon Valley
APAC Avg
40.3
16%
65% 
-6%
4%
14%
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
Growth Index4
APAC Avg
2.7
Silicon Valley
2.1
$5.9bn
Silicon Valley
$264-323bn
APAC Avg
$3.3-4bn
80x
60%
4.9
Startup output3
Startup density5
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Sydney
Compass.co
110
 
Top target Markets
United States of America
Australia
China
1.94
APAC Avg
APAC Avg
$44k
Time to hire engineers
Software engineer salary
Remote employees
Female employees
Foreign employees
Silicon Valley
APAC Avg.
-13%
40
-1%
46
Silicon Valley
46
$88.5k
Silicon Valley
56 %
43%
Silicon Valley
ACAC Avg
Silicon Valley
ACAC Avg
42%
29%
45%
$118k
22
Advisors with equity
Employees with startup experience
Equity to employees
10%
8%
Foreign Customers
Number of product languages
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg.
36%
41%
23%
28%
9%
-18%
-20%
-20%
39%
10%
33%
-50%
21%
6%
-34%
40%
-11%
28%
1%
1.7
2.2
8%
1.8
48%
37%
46%
4%
.
62%
.94
-21%
-20%
1.19
Silicon Valley
APAC Avg
28%
1  % Delta to Regional Average, % Delta to Silicon Valley
$210bn
$535bn
Silicon Valley
164%
1%
Metropolitan GDP
$203bn
APAC Avg
Talent1
Market Reach1
Startup Experience1
Sydney
Compass.co
111
 
APAC Avg
Silicon Valley 23%
20%
1  % Delta to Regional Average, % Delta to Silicon Valley
APAC Avg.
Immigration time
Local government rated positive
Top Policy Issues
National government rated positive
APAC Avg
Silicon V
Silicon Valley
Cost & availability of workspace
Attractiveness of ecosystem to foreign investors
Transportation infrastructure
11%
-79%
-21%
21
79
18%
58%
38%
-39%
10%
99
19%
15%
Supporter & Policy Maker Insights1
"In the global tech arena, Sydney continues to punch above its weight but 
below its potential. In the past year another set of companies shot past $100 
millions in value but still too many early stage entrepreneurs are lamenting 
the lack of venture capital rather than wearing out shoe leather in the big 
markets of China, USA or Europe, or even South East Asia - which is right 
on our doorstep. Our domestic market is just too small. On the plus side, 
some groups are building stronger bridges to those larger markets and 
some speciality is growing in education, health, marketplaces and business 
software. 2016 is going to be a huge year for Sydney."
 
 Mick Liubinskas, Entrepreneur in Residence at muru-D and Co-Founder at Pollenizer
Sydney
Compass.co
Toronto
Canada
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
14
18
14
15
18
1.3
17
Intro
Toronto is the most populous and economically powerful city in 
Canada.	It	is	home	to	the	world's	seventh	largest	stock	exchange,	
and is a vibrant hub for innovation and entrepreneurship. Despite 
Toronto's	 significant	 drop	 of	 nine	 spots	 in	 the	 overall	 ranking	
(#17 in 2015 from #8 in 2012), the ecosystem has grown over 
the past three years and now comprises between 2,500 to 4,100 
active tech startups. As with all other ecosystems that slid in the 
ranking (with the exception of Tel Aviv). This drop in position 
owes	 to	 Toronto's	 relatively	 slower	 growth	 (5th	 slowest	 of	 the	
top 20) rather than erosion. Toronto still maintains its position as 
the strongest startup ecosystem in Canada.  
It is competitive in Market Reach (ranked #14) and Talent 
(#15) with a skilled and low cost talent pool, even without 
taking	 into	 account	 the	 government's	 R&D	 tax	 credit.	 Toronto	
is	also	a	culturally	diverse	city,	as	reflected	 in	the	 international	
composition of startup teams (48% of foreign employees). As the 
CEO	of	 Toronto's	poster	 child	 startup	Wattpad	 	 (a	member	of	
the	Canadian	'Narwhal	Club'	with	a	valuation	beyond	$1	billion)1 
stated,	the	company's	international	expansion	plans	were	largely	
centered around the diverse and multilingual talent pool of 
Toronto.
To	ensure	the	city's	competitiveness	on	a	global	 level,	Toronto	
has to improve local access to venture capital (ranked #18). 
Most experts agree that access to seed and Series A funding 
are less of a concern as established angel communities exist 
and government programs supported the development of 
institutional	 investment	 firms.	 However,	 startups	 have	 been	
strongly	dependent	on	U.S.	VC	firms	for	later-stage	investments.	
A growing number of startups have been able to secure later-
stage funding, sometimes with local venture capitalists taking 
the lead, yet the structural gap around series B funding persists. 
1 Orton, T. (2014)
113
 
Selected Findings
Toronto ranked higher than Vancouver and 
Montreal in the Performance Index with higher 
Startup Output and Ecosystem Value, and in 
Market Reach, due to its larger local market. 
Toronto startups reports an average of 48% 
foreign customers, about 20% lower than for 
Montreal and Vancouver.   
Software engineers in Toronto receive around half 
of the salary of their peers in Silicon Valley 
(~$55,000	vs.	~$120,000).
Only	5%	of	startups	benefit	from	having	a	founder	
with experience in a hypergrowth startup (69% 
below regional average and 85% below Silicon 
Valley average).
The second weakest point of the Toronto ecosystem is the low 
Startup Experience (#18), where Toronto ranked lower than its 
Canadian counterparts. 
Ecosystem Partner: Startup Canada
"Across the entire world, Toronto is a unique 
gem of a city. It brings the entire world together 
in one place. It is geographically in the American 
market, historically in the European market, and 
its rapidly changing population is building new ties 
to Asia. It has world leading universities, top talent, 
an incredible media landscape, huge government 
entrepreneurship grants and private capital. Toronto 
has world leading companies in nearly every vertical, 
all in one city. And as a culture, Toronto prides itself 
on integrating and celebrating diverse peoples." 
 
 Sunir Shah, VP Marketing Olark
"There are 3.7 million high-net-worth individuals 
in North America with only about 320,000 of those 
with more than $1 million in investable assets in 
Canada. There should be no surprise to readers that 
there is a funding gap. Canadians are conservative 
investors by nature and the 2014 NACO Report 
shows a decrease of angel investors from 2100 in 
2013 to 1700 in 2014. In spite of this, there have 
been increases in the number of start-ups seeking 
funding. Maple Leaf Angels, a Toronto-based angel 
group, has seen a doubling of applicants for funding 
in FY 2014 versus 2013."
 
 Gerard Buckley, President and CEO at Jaguar Capital
"Toronto is a 24-hour metropolis that draws the 
best and brightest, not just from across Canada, 
but from around the world. Talent is just as good 
as what can be found in the U.S., but with overall 
prices more affordable than Silicon Valley. With our 
world renowned social safety net, I just wish that we 
took bigger risks. Only then will we approach Silicon 
Valley's ranks."
 
 Connor Dickie, Co-Founder and CEO at Synbiota
Toronto
114
 
$6.5-7M
$7-7.5M 14%
8%
Silicon Valley
North America Avg
-1%
36.2
35.5
-3%
24%
571%
Female founders
19%
24%
20% 2%
Silicon Valley
North America Avg
Founder age
36.7
Silicon Valley
North America Avg
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
93%
85%
88%
-6%
Silicon Valley
North America Avg
5%
35%
17%
Silicon Valley
North America Avg
0.8 42%
Silicon Valley
North America Avg
1.85-2.5 293%
$14-19k 399%
4.1k
Silicon Valley
North America Avg
18%
$900-950k
$800-850k
Silicon Valley
North America Avg
30%
23%
 0.4-0.7
2.5-4.1k
$700-750k
Seed funding
Series A funding
Dilution
19%
19%
19% -3%
Silicon Valley
North America Avg
$6-6.5M
1%
Rounds with local only investors
67% 
61%
60% -10%
Silicon Valley
North America Avg
-9%
-8%
Funding 1
Demographics1
Performance & Growth1
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
226%
226%
N America Avg $37.7bn 5.3x
N. America Avg
1.8
Silicon Valley
$264-323bn
Silicon Valley
2.1
Ecosystem Value2
Growth Index4
2.1
$6.4-7.8bn
41x
Toronto
Compass.co
115
 
Time to hire engineers
Software engineer salary
Remote employees
21%
43%
26% 25%
Silicon Valley
North America Avg
$54.7k
$118k
$91
107%
6%
25%
107%
18%
Silicon Valley
North America Avg
Female employees
Foreign employees
44%
45%
32%
-27%
Silicon Valley
North America Avg
25%
29%
26% 5%
Silicon Valley
North America Avg
45
40
48
Silicon Valley
North America Avg
Advisors with equity
Employees with startup experience
35%
Equity to employees
9%
8%
10% 5%
Silicon Valley
North America Avg
-12%
Silicon Valley
North America Avg
1.01
Silicon Valley
North America Avg
Foreign Customers
Top target Markets
United States of America
Canada
United Kingdom
48%
36%
37%
-21%
Silicon Valley
North America Avg
-25%
Number of product languages
1.6
2.2
1.8 17%
Silicon Valley
North America Avg
40%
-11%
2%
35%
23%
44%
48%
91%
36%
1.38
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
63%
$430bn
N. America Avg
$535bn
Silicon Valley
105%
$261bn
Metropolitan GDP
Talent1
Market Reach1
Startup Experience1
Toronto
Compass.co
116
 
Local government rated positive
National government rated positive
28%
North America Avg
25%
N. A. Avg
Immigration time
71
21
22.8
-68%
Silicon Valley
N. America Avg
-71%
Top Policy Issues
30%
23%
-6%
Silicon Valley
-23%
27%
11%
-6%
Silicon V.
-60%
Cost & availability of workspace
Cost of living
Attractiveness of ecosystem to foreign investors
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
"Toronto is a world-class city in every way possible with a strong and 
expanding startup ecosystem. Three critical factors are holding us back from 
breaking through to the top level. First, it's our Canadian-ness. We wear an 
albatross of modesty that you don't see in the Silicon Valleys and Tel Avivs of 
the world. We can sometimes be too meek and apologetic to clearly convey 
our desire for top-level success. The second is that the investment community 
simply isn't where it needs to be. Too many Toronto entrepreneurs seek early-
stage venture funding from the U.S. and internationally out of necessity rather 
than choice. Finally, while the greater Toronto area has 6 million people, our 
startup community has yet to shed what can often be a restrictive small-town 
mentality." 
 
 Aron Solomon, Aron Solomon, JD, Senior Advisor and Founder at LegalX
Toronto
Compass.co
Vancouver
Canada
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
18
19
15
14
11
1.2
18
Intro
Vancouver is the largest city on the West Coast of Canada and 
shares many cultural similarities with Seattle and San Francisco, its 
American counterparts. Originally fueled by the forestry, mining, 
and shipping industries, its economy is now fueled by software 
development, biotechnology, aerospace, and entertainment. 
Vancouver is currently home to between 1,600 and 2,700 active 
tech startups and ranks #18, compared to #9 in 2012. This is 
explained by its relatively slow growth (the third lowest Growth 
Index of the top 20), and an update in our methodology away 
from the number of startups per capita. 
Recent success stories include HootSuite and Avigilon, which 
together created more than 1,000 jobs and became part of the 
Canadian	'Narwhal	Club'	for	startups	with	valuations	beyond	$1	
billion.	Hyper-growth	tech	startup	Slack	opened	a	sizable	office	
in Vancouver, taking advantage of Canadian immigration policies 
while being in the same time zone as San Francisco. 
Funding	 is	 Vancouver's	 big	 bottleneck,	 with	 a	 #19	 rank.	 2014	
venture	 capital	 investments	 were	 around	 $382	 million,	 an	
amount of capital far below other leading startup ecosystems.
However, its access to skilled software engineers is quite 
goodit ranks #14 in Talent due to its lower talent cost, even 
without	considering	the	impact	of	Canada's	R&D	tax	credits.	Still,	
entrepreneurs complain that the city has become expensive and 
that attracting high-quality talent in a timely fashion is a challenge.
Ecosystem Partner: Startup Weekend Vancouver
  
118
 
Selected Findings
Average seed and Series A funding amounts in 
Vancouver are around 50% lower than the North 
American average. The percentage of local-only 
investments is slightly higher.
Vancouver achieves an excellent #11 ranking in 
Startup Experience thanks to the high average 
number of advisors with equity (1.54, which is 11% 
above North American average).
The time to hire a software engineer is 9% longer 
than in Silicon Valley, but the cost of engineers is 
less	than	half	(~$52,000	vs.	~$120,000).
While ranking #15 in Market Reach, Vancouver 
achieves an impressive #2 in Global Market Reach. 
Like its Canadian counterparts, Vancouver startups 
focus	on	the	U.S.	market	from	an	early	stage,	as	
captured by an average of 60% foreign customers 
(North American average: 37%) and an average 
number of 1.8 product languages.
Very few founders (7%) have gained experience at 
hypergrowth startups (35% in Silicon Valley). 
"Vancouver has grown into an incredible location 
for startups across a wide variety of industries. 
With excellent support from the C100, VC firms 
like VersionOne Ventures, and incubators and 
accelerators like Launch Academy and Highline, 
startups have never been in a better position to 
launch their businesses in Vancouver. In order 
to truly evolve into a world class startup hub, 
Vancouver continues to need broader access to 
quality angel investors and professional capital, 
with extensive experience in scaling businesses. 
Too many amazing Vancouver companies sell or 
otherwise exit prior to successfully raising a Series 
B or C round. We need more entrepreneurs willing 
to follow in the bold footsteps of companies like 
Hootsuite, BuildDirect, Avigilon that are building $1 
Billion companies right here in Vancouver. As more 
startups achieve scale in our own backyard, the 
knowledge, experience and capital required to fuel 
the local startup scene will continue to expand."
 
 Rob Goehring, CEO at RewardStream
"With Canadian cities being geographically far 
from each, combined with a much lower population 
Startup Density compared to the United States, 
Vancouver startups need to focus on growing 
and expanding south of the border, as well as 
internationally, to survive." 
 
 Charlene Tessier, CFO at Dana.io
"Vancouver's tech scene is a growing and 
undiscovered market with emerging talent that is 
on par with major US tech hubs.  People are slowly 
starting to discover startups with roots in Vancouver 
such as Slack, Hootsuite, Clio  and PlentyOfFish. 
Surrounded by water and mountains with an 
emphasis on lifestyle and health this picturesque city 
will continue its tech boom and attract interest from 
VCs and techies alike for many years to come."
 
 Milun Tesovic, Founder of MetroLycris.com
Vancouver
119
 
$6.5-7M
$7-7.5M 51%
44%
Silicon Valley
North America Avg
-9%
36.2
35.5
-11%
53%
429%
Female founders
16%
24%
20% 25%
Silicon Valley
North America Avg
Founder age
39.7
Silicon Valley
North America Avg
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
100%
85%
88% -12%
Silicon Valley
North America Avg
7%
35%
17% 158%
Silicon Valley
North America Avg
0.8
-17%
Silicon Valley
North America Avg
1.85-2.5 130%
$14-19k 653%
4.1k
Silicon Valley
North America Avg
52%
$900-950k
$800-850k
Silicon Valley
North America Avg
68%
86%
 0.7-1.15 
1.6-2.7k
$550-600k
Seed funding
Series A funding
Dilution
17%
19%
19% 11%
Silicon Valley
North America Avg
$4.5-5M
15%
Rounds with local only investors
66% 
61%
60% -8%
Silicon Valley
North America Avg
-15%
-7%
Funding 1
Demographics1
Performance & Growth1
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
N America Avg $37.7bn 9x
66x
N. America Avg
1.8
Silicon Valley
$264-323bn
Silicon Valley
2.1
Ecosystem Value2
Growth Index4
2.1
$4-4.9bn
Startup density5
Compass.co
120
 
Time to hire engineers
Software engineer salary
Remote employees
22%
43%
26% 18%
Silicon Valley
North America Avg
$51.6k
$118k
$91
95%
9%
77%
128%
45%
Silicon Valley
North America Avg
Female employees
Foreign employees
41%
45%
32%
-21%
Silicon Valley
North America Avg
20%
29%
26% 29%
Silicon Valley
North America Avg
44
40
48
Silicon Valley
North America Avg
Advisors with equity
Employees with startup experience
39%
Equity to employees
5%
8%
10% 104%
Silicon Valley
North America Avg
71%
Silicon Valley
North America Avg
1.54
Silicon Valley
North America Avg
Foreign Customers
Top target Markets
United States of America
Canada
China
60%
36%
37%
-38%
Silicon Valley
North America Avg
-41%
Number of product languages
1.8
2.2
1.8 4%
Silicon Valley
North America Avg
24%
-9%
10%
22%
11%
44%
48%
25%
-11%
1.38
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
321%
$430bn
N. America Avg
$535bn
Silicon Valley
430%
$101bn
Metropolitan GDP
Talent1
Market Reach1
Startup Experience1
Vancouver
Compass.co
121
 
Local government rated positive
National government rated positive
28%
North America Avg
25%
N. A. Avg
Immigration time
71
21
22.8
-68%
Silicon Valley
N. America Avg
-71%
Top Policy Issues
66%
23%
-57%
Silicon Valley
-65%
68%
11%
-63%
Silicon V.
-84%
Cost & availability of workspace
Formation and training of software engineers
Attractiveness of ecosystem to foreign investors
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
"With conferences like TED, TractionConf.io, and GrowConf hosted in 
Vancouver, there is no doubt that the world is anticipating a startup boom in 
this city. We have the talent, entrepreneurial mindset and the infrastructure to 
support high growth startups to compete on the global stage. More and more 
high quality startups will come out of Vancouver which will in turn attract 
more capital flowing into this city. The ecosystem is poised for big and rapid 
growth."
 
 Ray Walia, CEO at Launch Academy
Vancouver
Compass.co
1
Amsterdam
Netherlands
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
15
20
10
18
16
3
19
Intro
Amsterdam-StartupDelta, the only European newcomer, enters 
the ranking at #19 with more than 1,900-2,600 tech startups and 
the 5th highest Growth Index of the top 20. It is geographically 
defined	by	the	Amsterdam-The	Hague-Eindhoven	triangle.	
Amsterdam is an attractive location for tech startup founders due 
to its unique lifestyle aesthetic and great startup infrastructure, 
and	while	it's	not	as	big	of	a	startup	ecosystem	as	more	prominent	
European counterparts like London or Berlin, it certainly has the 
ambitions to become like them. 
The	 Ecosystem's	 success	 stories	 include	 Startupbootcamp,	 a	
global accelerator program now operating in more than ten 
countries,	 Nimbuzz,	 and	 the	 first	 Dutch	 tech	 unicorn,	 Ayden.	
Hypergrowth	startups	such	as	Uber	established	their	European	
headquarters in Amsterdam and use it as the gateway to 
continental Europe.
To	 further	 enhance	 the	 ecosystem's	 global	 impact,	 the	 Dutch	
government recently launched StartupDelta, which is trying to 
unite and better allocate the startup resources of the Netherlands 
that are currently scattered across the country. 
Despite these promising developments, there is a long way to go. 
Amsterdam ranks last among top 20 in Funding. The lack of seed 
and growth capital impedes entrepreneurial success, especially 
with regards to later-stage startups.  
Due to the small size of the Dutch market, Amsterdam startups 
tend to think global from day 1, which explains an impressive #10 
ranking in Market Reach. On average 50% of their customers are 
foreign	and	they	offer	their	product	in	more	than	two	languages	
from the outset.
123
 
Selected Findings
Amsterdam	is	Europe's	3rd	fastest	growing	
ecosystem behind Berlin and London. 
The average seed round amount is 21% below the 
European average.
Talent quality is around regional average, however 
the proportion of engineers with prior experience 
is lower. 35% of all employees are foreigners, 15% 
above European average. 
Nearly	1/5	of	all	founders	have	worked	for	a	
hypergrowth startup, 29% more than European 
average.
Finally, the historical tendency for entrepreneurs in Amsterdam 
to relocate to other cities when their startup is ready to scale may 
partly explain the noticeable gap of experienced serial founders 
and mentors in Amsterdam (#16 in Startup Experience).
Ecosystem Partners: Startup Foundation, StartupDelta, and 
Dealroom
"Amsterdam: There is money, there is vision, there 
are ideas, unfortunately not necessarily working 
together."
 
 Hans Koning, Managing Director at Biting Lynx
"I just founded my third startup in Amsterdam but 
previously lived in Silicon Valley. And even though 
the two make a nice comparison, the Dutch culture 
is fundamentally different from what I've seen in the 
Silicon Valley. But to herald Dutch innovation as it 
currently stands is to unveil a project that's still in its 
most nascent state. It's particularly exciting because 
for a few years Amsterdam has been playing catch 
up at a rate similar to Tesla's upgrades to their 
Model S's speed. For one, the Dutch, on the whole, 
speak better English than probably any non-native 
population in continental Europe. And with an 
excellent educational system in especially Math 
and Science, the pool of tech talent is growing 
rapidly. While most people think of Amsterdam as 
the World's capital of red lights, cheese, drugs and 
tulips, very little know that entrepreneurship - in its 
most fundamental form - actually originates from 
the Netherlands. Second, our biking climate and 
affordable office space and housing are particularly 
interesting to more founders. Third, consider that the 
Netherlands has 17 million people crammed into 
an area half the size of South Carolina. Thus, with 
more startups raising venture rounds north of a few 
million, the infectious nature of Amsterdam's capital, 
can only become a profound breeding ground to 
more prominent and talented startups from across 
the globe."
 
 Steven Lammertink, Founder and CEO at Cirqle
Amsterdam
124
 
Silicon Valley
Europe Avg
$600-650k
$900-950k 88%
21%
Europe Avg
36%
17%
35%
13%
Silicon Valley
Europe Avg
Silicon Valley
89%
5%
0%
Silicon Valley
Europe Avg
Silicon Valley
Europe Avg
88%
-29%
24%
85%
89%
Europe Avg
0.6 78%
Europe Avg
$450-500k
Average seed round
586%
Silicon Valley
1.85-2.5
630%
Silicon Valley
14-19k
Female founders
13%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
19%
1.9-2.6k
5%
0.25-0.35
34.6
88%
2.4k
34.5
36.2
$5-5.5M
Europe Avg
Average Series A round
Silicon Valley
$5.5-6M
$6.5-7M 22%
-6%
Dilution
38%
19%
19%
Rounds with local only investors
Europe Avg
Silicon Valley
-49%
-49%
Europe Avg
Silicon Valley
84% 
61%
66% -22%
-27%
-3%
2%
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
Growth Index4
Europe Avg
3.7
Silicon Valley
2.1
$12bn
Silicon Valley
$264-323bn
Europe Avg
$8.1-9.9bn
32x
1.3x
1.3
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
Amsterdam
Compass.co
125
 
Top target Markets
United States of America
Netherlands
Germany
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
Europe Avg.
Europe Avg.
$53.5k
Time to hire engineers
Software engineer salary
Remote employees
36%
Female employees
Foreign employees
18%
Silicon Valley
Europe Avg.
-3%
40
13%
47
Silicon Valley
41
$53.8k
Silicon Valley
19%
43%
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
35%
22%
29%
30%
45%
$118k
26
Advisors with equity
Employees with startup experience
Equity to employees
9%
8%
10% 4%
0.77
Silicon Valley
Foreign Customers
50%
Number of product languages
2.2
27%
4%
39%
48%
153%
37%
1.05
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
Silicon Valley
Europe Avg.
36%
56%
-28%
13%
2.2
2.4 12%
1%
Europe Avg.
-11%
119%
1%
-28%
60%
21%
29%
-15%
38%
$300bn
$535bn
Silicon Valley
66%
-5%
Metropolitan GDP
$322bn
Europe Avg
Talent1
Market Reach1
Startup Experience1
Amsterdam
Compass.co
126
 
1  % Delta to Regional Average, % Delta to Silicon Valley
81
Europe Avg.
r
 
.
20%
Immigration time
Local government rated positive
Top Policy Issues
27%
National government rated positive
Europe Avg
Silicon Valley
Europe Avg
Silicon V
Silicon Valley
Attractiveness of ecosystem to foreign investors
Cost & availability of workspace
Cost of living
23%
24%
11%
33%
-754%
2%
-28%
21
-13%
-11%
15%
80
Supporter & Policy Maker Insights1
"Amsterdam is trying hard to put itself on the map as an innovation hub 
alongside London, Berlin and Silicon Valley. It is one of the few places where 
people actually want to live and can afford to, even on a startup budget. 
That is one of the reasons it has a large labor pool, which is important when 
starting a business. Walking around the streets of Amsterdam and talking to 
many of the entrepreneurs you will notice the city has a lot of the ingredients 
to be a European startup hub. I, however, believe that the access to capital will 
be the biggest challenge for Amsterdam. It is the only way to retain the talent 
it's producing."
 
 David Wyler, Co-Founder and COO at Humin
Amsterdam
Compass.co
Montreal
Canada
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
19
17
16
13
17
1.5
20
Intro
Montreal	 makes	 its	 first	 appearance	 in	 this	 year's	 Startup	
Ecosystem Ranking at #20. With its cultural diversity and high 
quality of life, Montreal has proven to be a fertile ground for 
entrepreneurs and innovative tech startups. Our analysis 
suggests that Montreal is home to around 1,800 to 2,600 active 
tech startups. 
From its early successes with large exits in the animation industry 
in the mid-90s, Montreal has grown into a top 20 startup 
ecosystem with a good balance across the key indexes we 
measure startup ecosystems on. On the Funding side it ranks #17, 
having complemented its good institutional investor community 
with a number of well-organized, active angel investor groups 
such as Anges Quebec. However, as with the rest of Canada, 
startups	here	still	find	themselves	needing	to	cross	the	border	
to secure later-stage capital. 
Montreal enjoys good access to skilled software engineers and 
ranks #13 in Talent, thanks to the attractiveness of the city, 
combined with four well-known engineering schools that annually 
educate more than 5,000 computer science graduates. It also 
offers	significant	cost	advantages;	it	has	the	lowest	engineering	
salaries	among	North	America's	top	20,	and	additionally	benefits	
from	 Canada's	 generous	 	 R&D	 tax	 credits	 of	 up	 to	 70%.	 This	
combination of quality and low cost talent explains why several 
larger	tech	companies,	such	as	Silicon	Valley's	Electronic	Arts	and	
France's	Ubisoft,	have	chosen	to	open	large	software	development	
offices	 in	Montreal.	While	 those	are	 large	companies,	 it	builds	
the tech-savviness of the ecosystem and many of the employees 
go on to found or work at startups. 
128
 
Selected Findings
Despite an above-average growth in the number 
of	startups,	Montreal's	growth	index	ranks	14th	
due to the relatively slower growth of exits and VC 
investments.
Montreal ranks #17 in Startup Experience, with a 
much lower proportion of employees with startup 
experience, advisors with equity, and founders 
with hypergrowth experience.  
Series A round amounts are 11% higher than 
the top 20 North American hubs, while seed 
investment are 39% lower.
Montreal has the cheapest tech talent of top 20 
North Americans hubs (46% below average) and 
44% of startup employees are foreigners (27% 
above the North American average).
#3	in	Global	Market	Reach,	Montreal's	startups	
have a proportion of foreign customers of 57% 
(35% above North American average) and an 
average number of product languages of 2.4 
(24% above the North American average).
However,	 there	 are	 a	 few	 areas	 where	 Montreal's	 startup	
community	 seriously	 lags	 behind	 the	 top	 U.S.	 and	 European	
hubs, namely its ability to support rapidly scaling companies and 
its lack of large exits which are needed to energize the ecosystem. 
Improved global sales, marketing, and business development 
skills	are	also	prerequisites	needed	to	fulfil	these	goals.
Ecosystem Partner: International Startup Festival
"Historically, Montreal was a strategic city. It's an 
island, poised like a blockade on the St. Lawrence 
River, and for centuries it controlled trade from 
the Great Lakes to Europe. But history passed it by 
with the advent of global shipping and air travel. It 
has a few tech titans: CGI, Bombardier Aerospace. 
And it has always had a creative side: the software 
for Jurassic Park came from here and Cirque du 
Soleil blends athleticism with tech. Until recently, it 
hadn't found its feet. Risk-averse Canadian investors, 
concerns about linguistic regulation, and a tendency 
to think locally and constrain aspirations had 
plagued the ecosystem. In the past five years, this 
has changed. The discipline of entrepreneurship
codified by Steve Blank, Eric Ries, and their 
discipleshas laid out a clear path to launching 
new ventures. Pre-accelerators like Startup Weekend, 
Up Global, and Founder Institute have minted a new 
generation of founders. A number of respectable 
mid-sized exits have peppered the landscape with 
Angels, mentors, and returning founders. Real 
Ventures' FounderFuel accelerator and Notman 
House workspace have given the city a center of 
gravity. And the International Startup Festival, now 
in its sold-out fifth year, is the closest thing Canada 
has to Websummit. The city is finally remembering 
how much it has to offer: a blend of art and science; 
a gateway to Europe; access to a pool of smart, 
loyal, multilingual talent; and favourable economic 
incentives. And with this memory is a flourish of new 
ideas, new risks, and ultimately, world-class startups 
ready to bloom."
 
 Alistair Croll, Founder at Solve For Interesting
"Montreal has made incredible strides over the 
last few years. We have an extremely tight and 
cohesive startup ecosystem, with tremendous 
community and government support. Beyond being 
a great city to start a business in, Montreal is a 
fabulous place to live and play."
 
 Philippe Telio, Founder at The International Startup Festival
Montreal
129
 
N America Avg $37.7bn 10x
$6.5-7M
$7-7.5M
-11%
-15%
Silicon Valley
North America Avg
14%
36.2
35.5 11%
9%
315%
Female founders
22%
24%
20% -10%
Silicon Valley
North America Avg
Founder age
31.9
Silicon Valley
North America Avg
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
90%
85%
88% -2%
Silicon Valley
North America Avg
9%
35%
17% 102%
Silicon Valley
North America Avg
0.8 45%
Silicon Valley
North America Avg
1.85-2.5 302%
$14-19bn 654%
4.1k
Silicon Valley
North America Avg
39%
$900-950k
$800-850k
Silicon Valley
North America Avg
53%
86%
 0.45-0.65 
1.8-2.6k
$600-650k
Seed funding
Series A funding
Dilution
19%
19%
19% 0%
Silicon Valley
North America Avg
$8-8.5M
3%
Rounds with local only investors
74% 
61%
60% -18%
Silicon Valley
North America Avg
-5%
-17%
Funding 1
Demographics1
Performance & Growth1
N. America Avg
1.8
Silicon Valley
$264-323bn
Silicon Valley
2.1
Ecosystem value2
Growth Index4
1.5
$3.4-4.1bn
78x
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
Montreal
Compass.co
130
 
North America Avg
Silicon Valley
Time to hire engineers
Software engineer salary
Remote employees
17%
43%
29%
54%
$49k
155%
18%
Female employees
Foreign employees
44%
25%
5%
Advisors with equity
Employees with startup experience
40%
Equity to employees
13%
-21%
-34%
0.76
Foreign Customers
Top target Markets
United States of America
Canada
China
57%
Number of product languages
2.4
2.2
1.8
-24%
-9%
-4%
2%
-27%
18%
8%
44%
154%
81%
1.38
1  % Delta to Regional Average, % Delta to Silicon Valley
Metropolitan GDP
$143bn
$535bn 274%
$430bn 197%
Silicon Valley
N. America Avg
Silicon Valley
N. America Avg
Silicon Valley
N. America Avg
Silicon Valley
N. America Avg
Silicon Valley
N. America Avg
Silicon Valley
N. America Avg
Talent1
Market Reach1
Startup Experience1
149%
87%
$118k
$91k
North America Avg
Silicon Valley
North America Avg
Silicon Valley
North America Avg
Silicon Valley
40
48 14%
26%
26%
North America Avg
Silicon Valley
45%
32%
-37%
36%
48%
1.94
-35%
37%
8%
10%
42
Montreal
Compass.co
131
 
Local government rated positive
National government rated positive
28%
North America Avg
25%
N. A. Avg
Immigration time
71
21
22.8
-68%
Silicon Valley
N. America Avg
-71%
Top Policy Issues
33%
23%
-15%
Silicon Valley
-30%
37%
11%
-31%
Silicon V.
-71%
Attractiveness of ecosystem to foreign investors
Taxes
Local regulations (permits. licenses. etc.)
1  % Delta to Regional Average, % Delta to Silicon Valley
Supporter & Policy Maker Insights1
"When you visited Montreal 5-10 years ago it was hard not to notice the 
city's glorious past - the cobbled streets, the stone mansions and the converted 
warehouses. But you had the sense that it might be a city that had almost lost 
touch with its history of entrepreneurship. But the collaborative mindset that 
had been instrumental in the world's most successful startup hub(s) perfectly 
suited the naturally informal, creative psyche of Montrealers. Benefiting from 
this, a small, close-knit startup community was able to leverage this mindset 
to build a thriving startup scene that now has the scale and startup density of 
talent and capital to produce companies capable of being leaders on a global 
scale. While the city shows massive promise, it hasn't yet quite proven its 
sustainability as a startup hub. More of the current crop of promising startups 
need to realize their potential - and a few 'acorns' will then need to drop from 
those companies, either as investors or entrepreneurs, and themselves go 
on to be successful. The table is set, the potatoes are chopped, the gravy is 
bubbling and the squeaky cheese is on the side, but the poutine isn't quite 
ready for eating yet. "
 
 John Stokes, Partner at Real Ventures
Montreal
Compass.co
Hong Kong
Intro
Hong	 Kong's	 startup	 community	 has	 grown	 rapidly	 in	 the	 last	
two years, with an estimated number of some 2,000 early- to 
late-stage tech startups. It now solidly ranks among the top 25 
startup ecosystems in the world, with a Market Reach score that 
would rank among the top 10 due to its proximity to the Chinese 
Mainland with its large market, history of open markets, and 
deep international trading expertise. This makes Hong Kong an 
attractive launchpad for startups to scale globally.
Despite	
its	 more	
than	 healthy	 growth,	 Hong	 Kong's	
startup ecosystem is still at an early stage of development. 
Entrepreneurship is becoming more popular among the younger 
generation but the culture still dampens risk-taking in general. 
This	also	makes	recruiting	local	talent	more	difficult.			
On the Funding front the city is still lagging behind despite the 
high number of high-net-worth individuals and deep-pocketed 
financial	institutions.		As	with	many	other	developing	ecosystems	
the small number of sizeable tech exits has produced relatively 
few angel and venture investors experienced in, or comfortable 
with, tech startups. While the growth in exits is improving the 
situation,	 more	 is	 needed	 to	 close	 Hong	 Kong's	 Funding	 and	
Startup Experience gaps.
Building on its traditional strengths as a supply chain management 
hub, Hong Kong has strong potential in the development of 
startups that combine hardware and software such as wearables 
and Internet of Things.  The proximity to Shenzhen adds to this 
potential by providing easy access to inexpensive and rapid 
prototyping.  Fintech is another promising growth area, given 
Hong	Kong's	long-held	position	as	one	of	the	major	international	
financial	centers.	
Ecosystem	Partners:	InnoFoco	and	University	of	Hong	Kong
Performance
Funding
Market Reach
Talent
Startup Experience
Growth Index
25
30
(10)
(10)
(20)
3.0
23
Feature:
133
 
Selected Findings
Performance
 Rapid growth in the number of startups, thanks to growing 
entrepreneurship (organic growth) and the attraction of 
some international entrepreneurs (inorganic growth). The 
number of co-working spaces has mushroomed in recent 
years.
Funding
 Significantly	lower	access	to	venture	investments	than	in	top	
20 ecosystems.
 No shortage of capital but high-net worth individuals 
favor traditional investments with few of them having tech 
experience, even though their interest is rising.
 Outlook:	a	continued	increase	in	the	quantity/quality	
of startups and successful exits could rapidly turn the 
abundance	of	local	capital	and	financial	institutions	into	a	
venture funding strength. 
Talent
 Despite world class universities, attracting high-quality 
technical talent is challenging for startups due to the risk-
averse culture and the competition of large companies. 
Market Reach
 Long tradition of international trade and the presence 
of expats and western-educated locals translate into an 
excellent, demonstrated ability to penetrate foreign markets.
 Proximity to Mainland China market and convenient access 
to other Asian markets. 
Policy
 Recognition of the importance of startups by the government 
(notably InvestHK) stepping up marketing of Hong Kong as a 
startup hub.
 New initiatives to promote startups from universities 
and institutions like Cyberport, Hong Kong Science and 
Technology Parks.
 Can be more proactive in adapting government policies 
and regulations to facilitate the development of the startup 
ecosystem. 
"To realise its full potential as a startup hub, 
Hong Kong should further develop its position as an 
integrator and packager of ideas, talents and capital 
from around the world."
 
 Rachel Chan, Founder and Chief Catalyst at InnoFoco
"Startups are an important component of the 
disruptive innovation process that is redefining 
the global economic, social and political order. 
Historically, Hong Kong has always been very 
successful in capturing business opportunities by 
integrating and harnessing the talents and resources 
in the region and around the world, especially in 
manufacturing, trading and services. We have now 
arrived at a stage when Hong Kong will perform this 
role in innovation"
 
 Prof	Richard	Wong	of	the	University	of	Hong	Kong
Hong	Kong's	data	will	be	published	in	the	upcoming	Hong	Kong	
Startup Ecosystem Report.
Hong Kong
Kuala Lumpur
Intro
With its entrepreneurial spirit, advantageous location in the 
middle	 of	 Southeast	 Asia,	 and	 high	 English	 proficiency,	 Kuala	
Lumpur is well-positioned to claim a spot among the top Asian 
startup ecosystems. It is one of the fastest growing ecosystems 
in the world, with a Growth Index of 4.0. 
For several years, its government has actively invested in the 
development and success of startups, namely with the creation of 
MaGIC, a startup hub whose objectives are to develop, educate, 
expose, and accelerate entrepreneurs. With an impressive 
growth in successful exits, Kuala Lumpur is experiencing the rise 
of a new generation of Malaysian tech entrepreneurs. Although 
weaknesses of the ecosystem still exist, access to funding and 
talent has improved thanks to responsive government policy. 
Finally,	despite	Malaysia's	smaller	economy,	 its	central	 location	
near larger Southeast Asian markets makes it a good platform 
for international growth.
Ecosystem Partners: MaGIC (Malaysian Global Innovation 
& Creativity Centre), MDeC (Multimedia Development 
Corporation) and AIM (Agensi Inovasi Malaysia) 
Malaysia
Feature:
135
 
Selected Findings
Rapid growth in the total value of exits and in the 
number of startups, due government support. 
Much lower access to Series A and later-stage 
capital than in top 20 ecosystems.
Government funding has been instrumental in 
closing the angel funding gap. While there is 
no lack of high-net worth individuals, few have 
experience	with	tech	investments	and/or	the	risk	
appetite for them. 
Local technical talent, favors more stable jobs. This 
has led startups to turn to foreign talent, made 
easier via special immigration regulations. 
Kuala Lumpur startups can count on a modern 
economy with very good infrastructure, but the low 
availability of electronic forms of payments remain 
a challenge.
Kuala Lumpur ranks low in ability to go global 
despite its privileged location at the center of 
Southeast	Asia's	larger	markets	and	the	English	
proficiency	of	the	general	population.
Policy: proactive policy-making from the national 
government lead to easier hiring of foreign talent, 
better ecosystem coordination (namely through 
MaGIC) and improved early-stage funding. 
"2014-2015 is a breakthrough year for 
Malaysia in the tech startup space. We have seen 
the introduction of seven new accelerators, each 
with a different focus: gaming (GameFounders), 
fintech (Maybank), iOT (Brinc), travel (Tune Labs), 
MaGIC's very own MAP early stage accelerator, and 
500Startups' Distro Dojo growth-stage accelerator. 
Our startup darling GrabTaxi has raised $530 
million from VCs (and is well-positioned to become 
the dominant player in SEA. We believe Malaysia has 
all the ingredients to be the best launchpad for any 
Southeast Asian startup from a track record of 
successful regional founders, to its lower startup cost 
as compared to Singapore and its multicultural and 
multilingual advantage." 
 
 Cheryl Yeoh, MaGIC
"The ASEAN startup ecosystem is at a new stage of 
maturity, with plenty of companies having already 
gotten very far with their product and fundraising. 
We want to equip local startups with world-class 
tools, methods, and tactics. With MaGIC's support, 
world-class support for growth stage companies is 
accessible right here in Malaysia." 
 
 Khailee Ng, 500 Startups
  "Malaysia is a good place to grow regional 
businesses. It needs to believe in its strong offering 
within the South East Asia ecosystem. From a 
rules and regulations perspective, it is relatively 
easy to employ foreign talent in Malaysia, 
especially with the recent introduction of the MSC 
Status that permits startups to hire up to 20 
foreign employees without restriction."
 
 Hugh Batley, Lion & Lion
"We have everything here. The environment is 
good and business-friendly. Besides a multicultural 
background, our English-speaking base is also an 
added advantage. And we are doing our part to 
draw in more private sector funding to increase the 
capital pool available for startups. "
 
 Jamaludin Bujang, MAVCAP
Kuala Lumpur
136
 
Silicon Valley
APAC Avg
$450-500k
$900-950k 312%
110%
APAC Avg
-22%
15%
35%
11%
Silicon Valley
APAC Avg
Silicon Valley
26%
19%
6%
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
-9%
632%
128%
24%
85%
95% 1%
APAC Avg
0.4 96%
APAC Avg
$200-250k
Average seed round
Average Series A round
Dilution
19%
0%
Rounds with local only investors
61%
68% 10%
1042%
Silicon Valley
1.85-2.5
1099%
Silicon Valley
14-19k
Female founders
19%
Founder age
Founder with work experience in hypergrowth startup
Startups with at least 1 tech founder
5%
1.0-1.8k
67%
0.15-0.25
30.5
93%
2.3k
32.4
36.2
Silicon Valley
APAC Avg
$5-5.5M
$6.5-7M
$4-4.5M
36%
-19%
40%
Silicon Valley
APAC Avg
17%
-52%
-58%
62% 
Silicon Valley
APAC Avg
Funding 1
Demographics1
Performance & Growth1
Ecosystem value2
Growth Index4
APAC Avg
2.7
Silicon Valley
2.1
$5.9bn
Silicon Valley
$264-323bn
APAC Avg
$1.9-2.3bn
140x
2.7x
4.1
1 Delta to Silicon Valley, Delta to Regional Average
2  Estimated value of all startups at or prior to exit
3  Growth in output, exit $ and VC $ on a 10-point scale; average = 2.4
4  Estimated number of active tech startups in scope
5  Estimated number of active tech startups in scope created per 1,000 people
Startup output3
Startup density5
Kuala Lumpur
Compass.co
137
 
Top target Markets
Malaysia
Indonesia
United States of America
157%
1.94
1  % Delta to Regional Average, % Delta to Silicon Valley
13%
APAC Avg
APAC Avg
9%
$44k
191%
Time to hire engineers
Software engineer salary
Remote employees
19%
10%
Female employees
Foreign employees
69%
27%
171%
Silicon Valley
APAC Avg.
-19%
40
-8%
46
Silicon Valley
50
$40k
Silicon Valley
122%
43%
Silicon Valley
ACAC Avg
Silicon Valley
ACAC Avg
17%
29%
45%
$118k
22
Advisors with equity
Employees with startup experience
29%
Equity to employees
8%
8%
0.75
Silicon Valley
Foreign Customers
28%
Number of product languages
2.2
64%
25%
37%
48%
25%
.94
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg
Silicon Valley
APAC Avg.
36%
41%
30%
47%
1.8
1.8 0%
18%
APAC Avg
23%
-13%
28%
9% 11%
8%
$210bn
$535bn
Silicon Valley
282%
47%
Metropolitan GDP
$140bn
APAC Avg
Talent1
Market Reach1
Startup Experience1
Kuala Lumpur
Compass.co
138
 
Formation and training of software engineers
Cost & availability of workspace
Digital Infrastructure
1  % Delta to Regional Average, % Delta to Silicon Valley
Europe Avg.
APAC Avg.
19%
Immigration time
Local government rated positive
Top Policy Issues
National government rated positive
APAC Avg
Silicon Valley
APAC Avg
Silicon V
Silicon Valley
23%
20%
11%
-72%
6%
21
79
17%
13%
39%
21%
-20%
46%
74
Supporter & Policy Maker Insights1
Kuala Lumpur
Compass.co
139
Feature: Ecosystem Canvas
Feature: 
Ecosystem Canvas 
By Dr. Thomas Funke
Why is there a need for an ecosystem 
canvas?
As Head of the Entrepreneurship and Innovation department 
at the German Productivity and Innovation Centre (RKW) - a 
think tank of the Federal Ministry for Economics - I have spent 
a lot of time analyzing startup ecosystems with community 
builders around the world. In every single discussion, meeting, 
or workshop on startup ecosystems, I realized one thing: 
There needs to be a shared understanding of what an 
ecosystem actually is. A concept that everybody understands. 
One that facilitates description and discussion, and allows us to 
start from the same point and talk about the same thing. The 
challenge is that this concept must  mple, relevant, and intuitively 
understandable, and at the same time not oversimplifying the 
complexities of how ecosystems function.
This is why we developed a canvas that prescribes the manifold 
relationships of an entrepreneurship ecosystem. This canvas is 
designed to act as the starting point of a new perspective for 
both community builders and startups on their local ecosystem. 
It enables them to exploit existing chances and at the same 
time identify missing links. Both policy makers and startups 
can use it to focus on operational as well as strategic plans for 
supporting their local ecosystem. This concept can become a 
shared	language	that	allows	you	to	easily	describe	and	influence	
ecosystems to create a better environment for startups.
What is the ecosystem canvas?
An ecosystem can best be described through eleven basic 
building blocks that show the logic of how an ecosystem works. 
The eleven blocks cover the four main areas of an ecosystem: 
Ideas & Talents, Startup Community, Policy & Finance, and 
Markets. The canvas is part of a methodology that helps you to 
not forget relevant success factors when working on your local 
ecosystem.	The	methodology	has	4	steps:	in	the	first	layer,	the	
canvas serves as a reality check that reminds the key actors of 
a local ecosystem to think holistically about their ecosystem, 
connects them to each other, and prevents them from getting 
stuck on their own program. In the second step, it serves as a 
blueprint strategy for all actors in the network to be implemented 
in the ecosystem through structures, processes and systems. In 
the third step, it shows all community builders in a visual way, 
both the big picture, their own (important) roles in it, and the 
interdependencies. The fourth step helps to explore new growth 
opportunities, assess uses of new support programs, and to 
communicate across the community how we could accelerate 
the development of the ecosystem. 
This concept has been tested and successfully applied by various 
public business agencies, universities, incubators, and startup 
support organizations across the globe. Following the illustration 
on the next page, we invite you to learn how we applied our 
canvas on the example Berlin - one of the rising stars of this 
year's	report.	 
140
Ecosystem Canvas
German Productivity and Innovation Centre (2015). Entrepreneurship Ecosystem Canvas.
Feature: Ecosystem Canvas
141
The Case of Berlin
1. Understanding the Context
One of the cases where we have applied the canvas to is the 
vibrant startup scene of Berlin. The key reason why the German 
capital is so successful is its attractiveness to talent from all 
over the world. Also thanks to public actors and their support 
programs for entrepreneurs, the ecosystem continues to 
develop. However, certain concurrent activities inadvertently 
harmed the development of the ecosystem. For example, due 
to	the	government's	primary	goal	to	fully	exit	from	nuclear	fossil	
and fuel energy, many startup support programs were headed 
in the same direction, namely increasing the startup activity 
in the clean-tech sector. At least four of the bigger support 
organizations claimed to be the leading support organization 
for cleantech startups and launched initiatives to inspire and 
support future cleantech startups. Every support organization 
had	similar	offers	for	startups,	yet	there	was	no	clear	strategic	
positioning	among	the	support	institutions.	Startups	didn't	know	
which stakeholder stood for what kind of funding and support. 
This	lack	of	alignment	caused	not	just	an	inefficient	allocation	of	
capital and other resources but also lead to startups not utilizing 
any of the support programs. Additionally, the funding and 
support created a shortfall for other important areas, such as 
life sciences or ICT. The most unfortunate part was that without 
a holistic view on the interdependencies of all programs and its 
actors, none of the actors were fully aware of the problem since 
they were stuck in their own program details. This status quo 
was an ideal context to apply the methodology of our ecosystem 
canvas.
2. Mapping the Status Quo
The canvas served as ideal methodological approach, as one 
cannot develop a system-solution before most of the relevant 
stakeholders of the system have the same understanding of the 
underlying problem. We applied the canvas and its underlying 
methodology in a series of workshops that brought together 
the key actors such as ministries, public agencies, and those 
responsible for new support and funding programs. Working with 
the canvas helped the stakeholders to bring their perspectives 
to the meta-level. They were able to understand the missing 
alignment of their initiatives and the problems this caused for the 
entire ecosystem. Additionally, it helped the community builders, 
especially the public agencies, to view themselves as an essential 
part in their local ecosystemnot isolated, but connected to all 
other actors in the ecosystem. With the help of the canvas, the 
community builders were able to identify the interdependencies 
of	 each	other's	 programs	and	establish	 externalized	 as-is	 and	
to-be ecosystems. 
3. Exploiting Untapped Potential
As	can	be	seen	 from	 this	example	 the	canvas	adds	significant	
value	 in	almost	every	specific	situation	of	community	builders.	
In the case of Berlin, many of the actors in the clean-tech sector 
now actively collaborate, communicate systematically, and keep 
each other on track about the development of their support 
programs. They still work with the canvas visually to clearly see 
the big picture and their own important roles in it, as well as 
all interdependencies. They now complement and harmonize 
most of their activities. Applying the canvas has lead to a clearer 
positioning of all stakeholders on the market. One stakeholder is 
now	solely	responsible	for	the	education	and	qualification	part,	
another	primarily	concentrated	on	financing	cleantech	startups	
and providing them with key infrastructure.Above all, the 
canvas brought along high cost savings for the federal and city 
government as aligning the programs led to less redundancies. 
Furthermore, a clearer communication of individual program 
benefits	 led	to	a	strongly	 improved	match	making	with	eligible	
startups. 
Feature: Ecosystem Canvas
METHODOLOGY
143
Methodology
The ranking methodology focuses on the following aspects:
 Stakeholder	Objectives:	informing	our	stakeholders'	strategic	
decisions. 
 Objectivity and Transparency: producing a data-driven, 
objective ranking based on a transparent weighting formula 
and factors. 
 Data Sources: using multiple data sources to assess a large 
sample of startups.
 Robustness and Stability: testing multiple formulas to 
make	sure	the	ranking	is	robust	to	different	data	selection	
methods.
1. Stakeholder Objectives
We	took	three	different	perspectives	when	defining	the	objectives	
of this report. 
 An entrepreneur seeking a location for starting or expanding 
a startup.
 An investor looking for funding gaps. 
 A policy maker looking for high impact  to quantify impact of 
policies.
2. Data Sources
We	have	focused	our	efforts	on	collecting	measurable	and	
verifiable	information	from	startups	and	investors,	local	
ecosystem	partners,	and	third-party	sources.	Here's	a	
description of our main datasets:
 Compass'	proprietary	data
 Interview of Experts: ~ 200 interviews across 25 countries 
with founders, investors, and industry experts
 2015 Startup Ecosystem Survey with ~11,000 participants 
in 40 ecosystems.
 Compass.co:	performance	data	on	traffic		from	~35,000	
technology businesses.
 CrunchBase:	global	dataset	on	funding,	office	locations	and	
exits;
 Orb Intelligence: global dataset on startup location, type and 
status;
 Dealroom:	European	dataset	on	funding,	office	location	
funding	flow;
 AngelList: list of startups by city;
 Local partners (accelerators, incubators, startup hubs, 
investors): list of startups by city.
3.	Definitions	Used
Tech Startup.	Steve	Blank	defines	a	startup	as	a	"temporary	
organization in search for a repeatable and scalable business 
model".	We	then	define	tech	startups	azround	the	usage	of	
the term in Silicon Valley: startups whose products are mostly 
software-based. This includes web, mobile, and telecom 
software, as well as eCommerce. We excluded hardware, 
biotech, nanotech, and cleantech from our analysis. This 
definition	allows	us	to	analyze	a	more	homogenous	set	of	
startups. In terms of size, our analysis is focused on startups 
that	have	raised	at	least	$10,000	USD	in	financing,	and/or	hired	
at least one employee. This means very early startups are not 
considered part of this analysis, although sometimes hard to 
exclude, for instance when estimating the number of startups 
in an ecosystem.
Startup Ecosystem. A metropolitan city or geographic area 
with	a	shared	pool	of	resources.	We	applied	a	60-mile/100	
km radius around the city center, then worked with our local 
partners	to	refine	the	geographic	boundaries,	i.e.	which	smaller	
city shall be in or out.
Selected Data Timeframes:
 2014 - the most recent full year. For all variables except two 
(see below) we used data for the latest available complete 
year as it is the most recent representation of an ecosystem. 
First quarter 2015 data was not consistently available across 
variables and ecosystems, so it could not yet be used. We 
consider that when the direction of change of a variable is 
fairly stable, longer timeframes only result in looking further 
into the past. 
 Sum	of	2013,	2014	and	first	quarter	of	2015	-	the	last	9	
quarters. When a variable is subject to large swings from 
one year to the next yet the direction of change is stable 
over longer time horizons, we used a longer timeframe to 
better capture the status of an ecosystem. This was useful 
for	two	variables.	The	first	is	exit	value,	the	first	component	of	
Ecosystem Value. The issue is best illustrated by the following 
example:	Berlin	had	two	exits	worth	a	combined	$14	billion	
in 2014. Its 2015 exit value may well turn out to be lower, yet 
this would hardly be an indication that the Berlin ecosystem 
suddenly started shrinking after a period of rapid growth. 
Using	a	longer	time	horizon	prevents	this	issue.	The	second	
variable is the value of pre-exit startups, which is the other 
component of Ecosystem Value. Because it is based on 
funding events that do not necessarily happen every year, 
a longer timeframe helps capture the latest funding event 
for the great majority of active startups. Some inaccuracies 
will inevitably remain, but while some active startups may 
not	have	closed	a	round	between	1/1/2013	and	3/31/2015,	
Methodology
144
this	potential	under-estimation	is	offset	by	the	fact	that	the	
estimate also includes the funding events of startups that 
have	since	failed,	but	are	very	difficult	to	reliably	identify.	
Again,	no	timeframe	offers	a	perfect	solution. 
5. Ranking Methodology 
 
The ranking is a weighted average of the following factor 
rankings:
 Performance Index: 30%
 Factor Indexes:
 Funding: 25%
 Market Reach: 20%
 Talent: 15%
 Startup Experience: 10%
We calculated an ecosystem index value for each index, based 
on the sub-factor and component variables detailed below. The 
ecosystems were ranked under each factor, then multiplied by 
index weights to establish the overall rank of each ecosystem.
The weights of the factors were determined through multiple 
correlation analyses and modeling work based on linear 
regression analyses, using factor indexes as independent 
variables with the performance index as dependent variable. 
We then varied the weights and scoring sensitivity for each sub-
factor	and	component	variables	to	measure	the	fit	of	the	model	
as	measured	by	the	regression's	r-squared	(0.87)	and	variables'	
t-values. Finally, adding the actual Performance Index to the 
ranking	formula	serves	to	 include	the	 influence	of	unobserved	
factors on the performance of an ecosystem.
6. Changes from 2012 
Having access to a larger volume of data combined with the 
development of a mathematical model with a high degree of 
fit	drove	a	few	changes	in	this	year's	ranking	methodology.	The	
most	significant	change	was	the	removal	of	the	metric	"Startup	
Density"	 (number	of	startups	per	capita,	a	measure	of	density)	
from the Performance Index. This changes the scoring formula 
away from density to overall value and size of the ecosystem.
In interviews with many stakeholders (investors, entrepreneurs 
and others) we concluded that there is an interest for larger 
ecosystems supported by the availability of more resources. 
The	question	was	how	to	compare	the	performance	of	different	
ecosystems.	Is	an	ecosystem	with	$10	billion	in	value	and	1,000	
startups in a city with a metropolitan population of 5 million 
(Startup Density of 0.2 startup per thousand people) better than 
one	with	$15	billion	 in	value	and	1,500	startups	 in	a	city	of	10	
million people (0.15 startup per thousand people)? Our intuition, 
validated by interviews, modeling and correlation between 
different	 factors,	 showed	 that	 both	higher	 absolute	 value	 and	
higher number of startups are better, so we scored them 
separately. Startup Density was neither correlated with other 
performance variables nor drove the decisions of entrepreneurs 
and investors. Therefore we chose to focus the Performance 
Index on the value and size of the ecosystem. We are conducting 
more research to allow for more nuanced relationship in future 
versions.
This change is one reason why Tel Aviv, despite its continuous 
and well above-average growth rate, and the Waterloo Region 
in Canada with its very small population (slightly above half a 
million), are ranked lower in our 2015 ranking.
7. Index Details
Performance Index
The Performance Index is based on the Value of the Ecosystem, 
made of the sum of all valuations of startups at exits and at funding 
events (80%) and Startup Output, the number of startups (20%).
 The Ecosystem Value is based on an analysis of CrunchBase 
and Dealroom exit and funding data complemented with 
our	own	research,	using	CrunchBase's	and	Orb	Intelligence's	
product tags, status (whether the startup is active or not) and 
location. On average, the exit value accounted for 44% of 
Ecosystem Value.
 Startup Output, or number of startups, is estimated using 
the mark-and-recapture model and several lists of startups 
for each ecosystem. Interviews and datasets gave us a 
wide number of inputs for the number of startups in each 
ecosystem. The main issue was that some datasets (such 
as Crunchbase and Dealroom) are more popular in some 
areas and less in others, so they do not cover all ecosystems 
uniformly. We used a statistical model made popular by 
the	field	of	ecology	and	used	to	estimate	the	population	of	
different	wildlife	species,	called	"Mark	and	Recapture".	In	this	
methodology, every dataset we obtained was considered as a 
sample from the entire ecosystem, and the overlap between 
the datasets allowed us to estimate the total size of the 
ecosystem. The more datasets we added to the model, the 
more	the	estimate	became	precise.	This	is	reflected	in	our	
results by a narrower Startup Output range. You can read 
more about the methodology here. 
Methodology
145
 With the help of Global Entrepreneurship Network (GEN) 
and Global Entrepreneurship Research Network (GERN) 
we obtained several lists of startups for each ecosystem 
from CrunchBase, 2015 survey participants, Dealroom, and 
Compass and GEN partners.   In total we collected more than 
130,000 unique domains and analyzed them with the help of 
Orb	Intelligence	to	confirm	location,	activity	and	status.
Factor Indexes
A) FUNDING:
Availability of venture capital as measured by the amount of VC 
investments and the average time taken to raise a round.
 2014 Total Venture Capital Investments (80%); and Time to 
Raise a Financing Round (20%).
B) MARKET REACH:
Access to customers allowing the startup to scale rapidly, based 
on its local and cultural markets, and its ability to scale globally to 
markets	with	different	languages	and	needs.
 Local and Cultural Market Sizes (60%) comprised of: Local 
Market Size based on metropolitan city GDP (50%); Cultural 
Market Size based on national GDP and a portion of the GDP 
of countries speaking the same language (50%);
 Global Market Reach (40%) comprised of: Proportion of 
Foreign Customers based on survey data (80%); Number of 
Languages	offered	based	on	survey	data	(10%);	Proportion	of	
Foreign Employees based on survey data (5%); Proportion of 
Funding Rounds with International Investors based on survey 
data (5%).
C) TALENT:
Quality, availability and cost of technical talent.
 Quality (80%) comprised of: 2012 Startup Ecosystem Report 
Talent Index excluding the 2012 metric on proportion 
of employees with prior experience in a startup (33.3%); 
Proportion of Employees with Prior Experience in a Startup 
based on survey data (33.3%); Coding Skills based on the 
TopCoder country scores (33.3%);
 Availability (10%) comprised of: Time to Hire Engineers based 
on survey data (66.7%), Immigration Success Rate based on 
survey data (16.7%), Immigration Time based on survey data 
(16.7%);
 Cost (10%) based on average engineer salaries from 
Compass'	proprietary	2014-2015	startup	salary	survey,	the	
input	from	some	of	Compass'	60+	local	partners	and	in	a	few	
instances mean salary data points from Glassdoor, Salary.
com, and PayScale.
D) Startup Experience:
Captures the degree of startup experience in an ecosystem 
and the degree to which its startups espouse practices that are 
known	to	positively	impact	a	startup's	success	factors	based	on	
The Startup Genome Report series.
 Number of Startup Advisors with Equity based (25%); 
Proportion of Employees with Prior Experience in a Startup 
(25%); Proportion of Startups with Founders with Prior 
Experience in a Hypergrowth Startup (25%); Proportion of 
Startups Providing Stock Options to their Employees (25%), 
all based on survey data.
8. Growth Index
In addition to ecosystem ranking, we provide a Growth Index for 
each ecosystem based on average z-scores across the following 
indicators, converted into a 10-point index. 
 Annual growth in the number of startups (33%) estimated 
based on CrunchBase data;
 2013-2014 growth in VC investments (33%);
 Two-year moving average growth of the annual sum of exit 
valuations	(33%),	i.e.	(2014	+	2013	exit	values)	/	(2013	+	2012	
exit values)
Methodology
SOURCES
147
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Sources
 ACKNOWLEDGMENT 
AND PARTNERS
151
A global project like the Startup Ecosystem Report can only be 
realized	with	enormous	efforts	from	both	the	project	team	and	
external	supporters.	Several	partners	have	 invested	significant	
of resources into the project. Numerous advisors, founders, 
investors, and industry experts have given us access to their 
knowledge, networks, and time because they support our vision 
and wanted to move their ecosystem and the whole startup 
sector forward.
This section is meant to express our deep gratitude and 
appreciation towards anyone who made a contribution to make 
this project possible.
Authors
Bjoern Lasse Herrmann, CEO & Founder @Compass
JF Gauthier, CFO & Head of Business Development @Compass
Danny Holtschke, Project Manager @Compass
Dr. Ron Berman, Assistant Professor of Marketing at The 
Wharton School
Max Marmer, Writer & Founder Emeritus @Compass
Project Team
 Dhaval Chadha, Editor and Analysis
 Marc Penzel, Editor and Analysis
 Florian Schulze, Data Acquisition and Partnership 
Development Manager
 Lucas Hengstenberg, Data Acquisition and Analysis
 Johannes Drixler, Data Acquisition and Analysis
 Florian Fischer, Data Acquisition and Analysis
 Cheyenne Richards, Editor
 Gio Marcus, Editor
 Philipp Solay, Design
 Diana Martinez, Design 
Academic Contributors
Dr. Thomas Funke, Head of Department for Entrepreneurship 
of a think tank of the German Federal Ministry for Economics 
Survey Participants and 
Interviewees
Thanks to the more than 11,000 survey participants and 200 
interviewees--startup founders, investors, leaders of accelerators, 
incubators and startup hubs, and policy makers--across who 
trusted	us	by	sharing	their	confidential	information	and	expert	
knowledge with us. By providing us with solid quantitative data, 
they created the basis and the heart of our research.
Thank you for your support!  
Partners and 
Collaborators 
Global Partners
 CrunchBase: Everyday investors, journalists, founders, and 
the global business community turn to CrunchBase for 
information on startups and the people behind them.
 Dealroom is a data-driven marketplace for private capital, 
providing direct and secure access to the world's most 
sophisticated investors.
 Global Entrepreneurship Network is a year-round platform 
of programs and initiatives created by the communities 
that celebrate Global Entrepreneurship Week each 
November. 
 Microsoft Ventures is a global initiative empowering 
entrepreneurs around the world on their journey to build 
great companies. We work with startups at every stage of 
maturity to provide the tools, resources, knowledge and 
expertise they need to succeed.
 Orb Intelligence: Business Information for B2B Marketing 
and Sales. Orb provides company information and smart 
algorithms as a service to marketing software vendors and 
B2B agencies.
 Startupbootcamp is a global network of industry focused 
startup accelerators. We take startups global by giving 
them direct access to an international network of the most 
relevant partners and investors.
Acknowledgment & Partners
152
Regional Report Partners
We expect to publish regional reports over the coming months 
in partnership or collaboration with the following organizations. 
Australia
Deloitte is the brand under which thousands of professionals 
collaborate	across	a	network	of	offices	in	Australia	to	provide	
audit,	economics,	financial	advisory,	human	capital,	tax	and	
technology services. 
Pollenizer builds incubation and acceleration programs that 
help entrepreneurs and big companies all over the world get 
started with high growth, tech-powered businesses. We call this 
"startup	science".
Belgium
iMinds inspires and trains people to turn their innovative 
ideas	into	successful	businesses.	iMinds'	Incubation	&	
Entrepreneurship programs connect (future) entrepreneurs 
and researchers.
Canada, Waterloo Region
Communitech is an industry-led innovation centre in the 
Waterloo Region that supports a community of nearly 1,000 
technology companies at all stages of developmentfrom 
startups to high-growth mid-size companies and large global 
enterprises. 
Estonia
Eesti	Arengufond/Estonian	Development	Fund	is	designed	to	
support the positive changes in Estonian economy, investment 
activity, and growth programs.
Hong Kong S.A.R.
InnoFoco is working at the interface of the private, public and 
nonprofit	sectors,	InnoFoco	is	a	network	of	catalysts	who	aspire	
to	make	a	meaningful	difference	to	the	world,	with	expertise	in	
branding, design, and innovation.
The	University	of	Hong	Kong	(HKU)	is	the	oldest	institute	
of higher learning in Hong Kong and also an internationally 
recognized,	research	led,	comprehensive	university.	HKU	
strives to attract and nurture outstanding scholars from around 
the world through excellence and innovation in teaching and 
learning, research and knowledge exchange, contributing 
to the advancement of society and the development of 
leaders	through	a	global	presence,	regional	significance	and	
engagement with the rest of China.
India, Chennai
MaxBlox is the provider of a Platform-as-a-Service (PaaS) 
enabling startups and independent software vendors to build, 
deliver, market and sell their ideas to the world. 
Local Ecosystem Partners
Multiple Ecosystems
Built In is a global network of online communities for 
technology companies and startups. Headquartered in Chicago, 
USA,	Built	In	operates	Built	In	Chicago,	Built	In	L.A.,	Built	In	
Austin and Built In Colorado. 
Techstars is a global ecosystem that empowers entrepreneurs 
to bring new technologies to market wherever they choose to 
build their business. With 18 mentorship-driven accelerator 
programs	worldwide,	Techstars	exists	to	support	the	world's	
most promising entrepreneurs throughout their journey.
Amsterdam-StartupDelta, Netherlands
StartupDelta tackles challenges that hinder the growth of 
startups. It closely collaborates with the 10+ tech hubs to make 
the Netherlands the largest startup ecosystem in Europe.
The	Startup	Foundation	is	an	independent	non-profit,	run	by	
entrepreneurs, for entrepreneurs. They support founders in 
building more successful startups.
Atlanta, USA
Fueled by the same entrepreneurial spirit that drives the folks 
we	cover,	Hypepotamus	generates	awareness	about	Atlanta's	
innovative tech & creative community to retain local talent by 
connecting them with opportunities.
Austin, USA
Techstars:	see	"Multiple	Ecosystems"	above
Central Texas Angel Network is committed to provide 
startup capital and business mentorship in order to increase 
companies likelihood of success to the maximum extent 
possible.
Bangalore and Delhi, India
Microsoft	Ventures:	see	"Global	Partners"	above
TLabs	is	India's	leading	tech	startup	accelerator	and	early	stage	
seed-fund focused on internet and mobile. Powered by a panel 
of 100+ mentors, TLabs has invested in 43 startups in its last 
three years of existence.
Barcelona, Spain
Barcelona Activa  integrated in the Area of Economy, Enterprise 
and Employment, is the executive tool of the Economic 
Development policies of the Barcelona City Council.
Acknowledgment & Partners
153
Berlin, Germany
Gruenderszene is the online magazine with the hottest stories 
about and for the digital economy in Germany.
TechBerlin believes that entrepreneurship is a force for good 
and that a thriving startup community is essential to nurturing 
entrepreneurship.	We're	building	a	platform	to	support	
the community, a place where it shares news, events and 
resources.
Microsoft	Ventures:	see	"Global	Partners"	above
Boston, USA
TechHub is a unique environment where technology startups 
can start up faster. We nurture an international network of 
like-minded and focused tech entrepreneurs, providing places 
where they can work, meet, collaborate, network, learn and 
have fun. By getting the right people together in a physical 
space, good things happen.
Techstars:	see	"Multiple	Ecosystems"	above
Chicago, USA
1871	is	Chicago's	entrepreneurial	hub	for	digital	startups.	Come	
to a place where you can share ideas, make mistakes, work 
hard, build your business and, with a little luck, change the 
world. Welcome to 1871.
China
InnoSpace is a leading incubation platform with its own 
angel	fund	in	Shanghai,	offering	a	total	solution	for	global	
entrepreneurs	ranging	from	capital	raising,	market/business	
development, HR solutions and technological guidance. 
IPV	Capital	is	a	venture	capital	firm	dedicated	to	delivering	
exceptional investment performance to early stage, high-
growth	technology	firms	in	China.	IPV	brings	together	people,	
capital, and ideas to help realize the next great technology 
leaders of tomorrow.
Denver/Boulder, USA
Techstars:	see	"Multiple	Ecosystems"	above
Dublin, Ireland
The	Dublin	Commissioner	for	Startups	is	an	independent	office	
promoting Dublin as a global tech hub for startup and scaling 
companies, supported by Enterprise Ireland and Dublin City 
Council.
Jakarta, Indonesia
Kejora is a tech business incubator. They focus 
their investments on early stage startups related to 
telecommunication, media, and technology sectors. 
Kuala Lumpur, Malaysia
MaGIC's	mission	is	to	catalyze	the	entrepreneurial	ecosystem	
in Malaysia, bringing together the abundant resources from 
partners and communities alike.
AIM lays the foundation of innovation that inspires and 
produces a new generation of innovative entrepreneurs by 
creating wealth through knowledge, technology and innovation; 
with a mission to stimulate and develop the innovation 
ecosystem in Malaysia towards achieving Vision 2020.
MDeC's	mission	is	to	spearhead	the	nation's	digital	economy	
by	enhancing	Malaysia's	status	as	a	global	hub	and	preferred	
location for ICT industries; and to catalyze a holistic ecosystem 
that promotes the pervasive use of ICT and connected 
communities. 
London, UK
Centre for entrepreneurs promotes the role of entrepreneurs 
in creating economic growth and social well-being. The Centre 
is an independent organisation chaired by Financial Times 
columnist and serial entrepreneur Luke Johnson.
StartUp	Britain	is	a	national	campaign	by	entrepreneurs	
for entrepreneurs, harnessing the expertise and passion of 
Britain's	leading	businesspeople	to	celebrate,	inspire	and	
accelerate	enterprise	in	the	UK.
Los Angeles / Orange County, USA 
Cross Campus is the leading collaborative workspace and 
business event venue in L.A. With a superior design & user 
experience, best-in-class event programming and execution, 
and a diverse community of innovative members, it has become 
known	as	"the	nerve	center	of	Silicon	Beach."
Mucker Capital is the leading pre-seed and seed stage venture 
fund based in Los Angeles.
Techstars:	see	"Multiple	Ecosystems"	above
Montreal, Canada
The International Startup Festival puts a new spin on 
entrepreneurship each year with content ranging from back-of-
the-napkin ideas to champagne-popping exits. 
Moscow, Russia
#tceh brings together startups, experts, and investors. It is a 
new form of infrastructure for business development, providing 
structure and expert advice to IT coworking.
Internet Development Fund initiatives (IIDF) provides funding 
and expert resources, as well as acceleration programs, for 
online startups in the early stages of development.
Acknowledgment & Partners
154
Russian Venture Company (RVC) is a government fund of 
funds and a development agency aimed at building a national 
innovation system in Russia. 
New York, USA
DreamIt is an accelerator programs providing synergistic 
innovation models that assist companiesfrom startups to 
multinational corporationsin de-risking their businesses 
quickly	and	cost	effectively.
Rubicon strives to deliver real value through our extensive 
global network of institutional limited partners, angels, and 
advisors.	Got	challenges?	We've	got	seasoned	entrepreneurs	
and industry leaders ready to go to bat for you.
Paris, France
France Digitale is an initiative to help startups and investors join 
forces to create the French digital champions.
NUMA	combines	co-working,	startup	acceleration,	events,	
and open innovation programs for companies, startups and 
communities at large.
TheFamily nurtures entrepreneurs through education, unfair 
advantages and capital.
50	Partners	offers	mentorship	for	innovative	young	startups,	
resources and expertise through an established network of 
successful entrepreneurs.
Rome, Italy, INcube
INcube	is	at	the	"Convergence	Point	of	Innovation"	where	
international Investor relationships and our Intesa Sanpaolo 
Start-Up	Initiative	meets	the	innovation	needs	of	mature	
corporations, as well as the commercialization needs of 
startups.
Santiago, Chile
Start-Up	Chile's	goal	is	to	increase	the	number	of	customer-
validated and scalable companies that will leave a lasting impact 
on the Latin American ecosystem.
Sao Paulo, Brazil
The	Brazilian	Startup	Association	(ABStartups)	is	a	nonprofit	
entity that has more than 3,000 startups registered and the 
mission to promote the Brazilian entrepreneurship market 
globally.
Start-Up	Brazil	is	a	national	program	for	startup	acceleration,	a	
federal government initiative created by the Ministry of Science, 
Technology and Innovation (MCTI) with Softex, in partnership 
with Brazilian accelerators. 
The Startup Farm is the bridge between entrepreneurs and the 
success they seek, supporting them through our accelerator 
program and other initiatives.
Seattle, USA
Microsoft	Ventures:	see	"Global	Partners".
TechAlliance leverages and implements industry leading 
enterprise solutions to help you rise above your competition.
Silicon Valley, USA
GSVlabs is a global innovation accelerator that supports the 
growth of talent, startups, and corporate partners.
Startup Grind is a global startup community designed to 
educate, inspire, and connect entrepreneurs. We host monthly 
events in more than 150 cities and 65 countries featuring 
successful local founders, innovators, educators, and investors.
Computer	History	Museum	is	a	nonprofit	organization	with	a	
four-decade	history	as	the	world's	leading	institution	exploring	
the history of computing and its ongoing impact on society.
Singapore
Startups, Technology and Asia. Infocomm Investments brings 
them together.
The Innovators Institute is a professional development 
center, peer support network, and global expert resource 
for Innovation. Our role is to inspire, nurture, and accelerate 
innovators to drive the Innovation Economy and re-invent the 
world for the better.
Tel Aviv, Israel
Start-Up	Nation	Central	is	inspired	by	the	story	of	how	Israel	
made the leap from being an isolated nation to an international 
innovation	powerhouse	SNC	will	plug	you	in	the	heart	of	Israel's	
innovation ecosystem.
Toronto, Canada
Startup Canada are entrepreneurs working together to build 
an environment and culture for entrepreneurial growth and 
success.
Vancouver, Canada
Startup	Weekend	Vancouver	is	part	of	the	Up	Global	
community and brings entrepreneurs, local leaders, and friends 
together	over	five	days	to	build	momentum	and	opportunity	
around	your	community's	unique	entrepreneurial	identity.
Acknowledgment & Partners
155
Startup Package Partners
To reward participants of our online survey, multiple great 
companies	agreed	to	offer	huge	discounts	on	their	product:	
New Relic is a monitoring software for your web or mobile 
application.	Once	you	have	your	first	product	up	and	running,	it	
saves you a lot of pain and frustration.
Zendesk is a customer support application. Being responsive 
and	 in	 touch	 with	 your	 customers	makes	 a	 big	 difference	 no	
matter in what stage your company is.
Olark is a lightweight chat tool that you can integrate on your site 
or	application	within	a	few	minutes.	It's	great	for	engaging	and	
learning from your customers right when they use your product.
Close.io is a intuitive CRM with integrated calling, emailing, and 
search capabilities. You can get setup and start calling within 
minutes.	Close.io	also	offered	their	guides	on	Outbound	Startup	
Sales and Inbound Startup Sales.
Pipedrive is a low-cost multi platform CRM for small teams. It has 
great reporting and sales forecasting.
Iron.io is a hosted message queue service that is at the core of 
many modern web applications.
Wix is a website builder for quickly testing new value propositions 
with professionally looking websites and landing pages.
Foundersuite is a comprehensive compilation of tools and legal 
documents	to	help	early	startups	get	off	the	ground.
Survey Promotion 
Collaborators 
Our project received great support from more than 60 local 
partners distributed across more than 40 ecosystems. We 
could not have done it without them. They are leaders of 
accelerators,	incubators,	startup	hubs,	and	VC	firms	who	made	
great	efforts	to	spread	the	word	about	the	project	in	their	
community. Thank you to:
 Brazil
 AceleraTech
 Acelera Partners
 Aceleradora
 Beita
 Wayra
 Canada
 betakit
 Launch Academy
 Chile
 Corfo
 LatAm Startups
 China 
 GWC 
 Hax Accelerator 
 InnoSpace
 Legend Holdings
 Tencent Incubator
 Denmark
 Trends online
 Germany
 RKW Kompetenzzentrum
 India
 10 000 Startups
 ispirt
 Indonesia
 Daily Social
 Indonesian E-Commerce Association
 Israel
 Jerusalem City Administration
 Tel Aviv Global City Administration
 Netherlands
 Dutchstartupmap.nl
 Startupjuncture
 Poland
 bitspiration
 Russia
 Russian Startup Ranking
 Skolkovo
 Singapore
 500 Startups
 TechInAsia
 sph plug and play
 Spain
 WWWhat's	new
 Turkey
 Tohumte
 United	Kingdom
 Tech City
 Enterprise Nation
 Startup Britain
 USA,	Los	Angeles
 LA TechDigest
 BixelExchange
Acknowledgment & Partners
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