Startup Genome has released the first half of an extensive report on the world’s best startup ecosystems.
The most interesting component of the report is the Startup Ecosystem Index, which ranks 20 major hubs around the world across a variety of index categories, including Talent, Mindset, and "Differentiation from Silicon Valley."
Combing through data on more than 50,000 startups globally, Genome has ranked the top 20 startup ecosystems in the world. And three Canadian cities crack the list.
Toronto ranks 8th and Vancouver ranks 9th, both cracking the top 10 ahead of the likes of Paris and Sydney, while Waterloo ranks 16th, beating out Singapore and Santiago. The fact that a country of just 34 million people has three startup ecosystems in the top 20 is incredible.
Vancouver ranks an astounding 2nd on the Mindset Index, which measures how well the population of founders in a given ecosystem think like great entrepreneurs and "where great entrepreneurs are visionary, resilient, have a high appetite for risk, a strong work ethic and an ability to overcome the typical challenges startups face." Toronto and Waterloo lag greatly in that index, ranking 15th and 17th respectively.
Vancouver also fares well in the Talent Index, ranking 4th. The talented index basically measures how talented the founders in a given startup ecosystem are, taking into account age, education, startup experience, industry domain expertise, ability to mitigate risk and previous startup success rate.
Toronto shines in the Performance and Support indexes, ranking 3rd in both. The performance index measures the total performance and performance potential of startups in a given startup ecosystem, taking into account variables such as revenue, job growth, and potential growth of companies in the startup ecosystem. The support index measures the quality of the startup ecosystem’s support network, including the prevalence of mentorship, service providers and types of funding sources.
Waterloo has no particular strength, according Genome's data. Its best ranking is 11th in the Funding Index. That's slightly better than Vancouver but worse than Toronto. The funding index measures how active and how comprehensive the risk capital is in a startup ecosystem. And keep in mind how small Waterloo is in comparison to the likes of New York City and London.
Here are the top 20 startup ecosystems in the world in order.
- Silicon Valley
- Tel Aviv
- Los Angeles
- New York City
- Sao Paulo