According to new research released at London Tech Week 2022 on June 14, 2022, several Indian cities have made their marks on global startup rankings. Compared to 2021, Delhi is 11 places higher with a current rank of 26. The city entered the top 30 for the first time. Meanwhile, Mumbai stands at 36.
Impressively Bangalore held onto its record of attracting the most number of technological investments. Owing to significant improvements in its market reach and access to funding, the city ranked 22nd in the global startup ecosystem index.
Meanwhile, Global Startup Ecosystem’s report by Startup Genome found that in the Asian scenario, Beijing, Singapore, Hong Kong, and Korea dominated earlier. However, the likes of Bengaluru, Mumbai, and Delhi are now disrupting it at the forefront. Six of seven Indian ecosystems tracked by Startup Genome – including Chennai, Pune, Telangana, and Kerala, climbed the rankings. The cities benefited from a dispersion of the tech economy.
Bangalore’s Dominance in the Global Startup Rankings
Dealroom.Co for London & Partners, London’s business growth agency, conducted the research. It showed that Bangalore is the leading Asian city and fifth-ranked hub in the world for tech venture capital (VC) investment in 2022.
In the first five months of 2022, i.e. from January to May, Bangalore’s tech firms raised USD 7.5 billion in VC funding. The city dubbed ‘Silicon Valley of India’ grew considerably higher investment than the previous record of USD 5.2 billion during the first six months of the last year.
The ‘Global Startup Ecosystem’ report emphasized Bangalore’s formidable status as the tech capital of India. It has an ecosystem value of USD 105 billion, considerably higher than Singapore (USD 89 billion) and Tokyo (USD 62 billion).
The decline in China’s Rankings
On the other hand, China’s ecosystems declined in the global startup rankings. Ever since the global startup ecosystem ranking report was published, it has been for the first time that the performance of Chinese startups has been in a downtrend. 8 out of the 13 Chinese cities fell in this year’s rankings.
The same five ecosystems remain at the top of the ranking in 2020 and 2021. However, Beijing has dropped one place and now stands at 5. Boston takes Beijing’s former place.
The UK startups scenario in the Rankings
The UK capital is also the most attractive tech hub in Europe for international VC investment. London firms raised USD 11.3 billion so far in 2022. It is significantly more than the likes of Paris (USD 5 billion) and Berlin (USD 2.4 billion).
According to London and Partners, the UK capital is the number one European city for Indian companies looking to expand outside their home market. It stands second after Dubai for the number of foreign direct investment projects from India in the past five years.
Moreover, the Startup Genome report highlighted London’s strengths in high-growth sectors such as Fintech, EdTech, and ClimateTech. As compared to any other European hub, London produced more unicorns startups and billion-dollar exits.
What the report and the officials have to say–
“India has seen a rapid rise in the number of large exits and early-stage rounds and a substantial increase in Ecosystem Value. The nation produced 44 unicorns in 2021, and exits rose to $14 billion — a 10-fold increase over 2020. Delhi and Mumbai joined Bangalore in the top 40,” said the report.
“China is experiencing the impact of government regulation. In 2021, Beijing cracked down on companies’ issues, including anti-competitiveness and data privacy. Global investors suffered when the Chinese government went after its Edtech industry in July, raising constraints on overseas IPOs in December,” it further reported.
“It’s fantastic to see startup growth across the whole of India as this creates lots of opportunities for collaboration with London. With our shared strengths in entrepreneurship, innovation and technology, we can expect to see UK and Indian tech companies doing business across both regions. London is already one of the top destinations for Indian tech companies looking to expand outside of their home market, and we continue to see a strong pipeline of Indian tech companies that are looking to grow their business internationally by moving to London,” said Hemin Bharucha, Director of India for London and Partners.
“London is the undisputed tech and innovation capital of Europe. This independent report demonstrates that our startup ecosystem is also one of the most diverse and vibrant in the world. The record levels of investment we’ve seen so far this year offer further proof that London’s tech sector continues to go from strength to strength,” said London Mayor Sadiq Khan.
“London is the community with the highest Global Connectedness after Silicon Valley and the best place in Europe to scale a tech business to global category leadership,” said JF Gauthier, Founder, and CEO, of Startup Genome.
Additional Findings from the Report
The global tech sector has weathered the pandemic better than other industries. Since the pandemic, tech companies grew 2.3 times more than their non-tech counterparts.
According to the report, 540 companies achieved unicorn status in 2021, as compared to the 150 unicorns in 2020—113 ecosystems produced at least one USD 1 billion-plus behemoth. Global average Series A rounds tripled to more than USD 18 million since 2012.
Seoul entered the global top 10 ecosystems for the first time. It moved up to six places from 16 in 2021 and 20 in 2020. Helsinki rose more than 20 places from 2021, joining the runners-up category at joint 35.
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