Techcrunch, "Silicon Valley, London, NYC: Startup Genome Data Reveals How The World’s Top Tech Hubs Stack Up", April 10, 2012
Last year, we covered an ambitious collaborative R&D project called “Startup Genome,” created by three young entrepreneurs, Bjoern Herrmann, Max Marmer, and Ertan Dogrultan. The goal of the ongoing project was (and is) to take a comprehensive, data-driven dive into what makes tech startups successful — and not so successful.
Out of its research came, among other things, Startup Compass: A free benchmarking tool that leverages its data to allow entrepreneurs to evaluate their progress compared to other startups in their space. The product’s overarching goal is to allow founders to make more informed product and business decisions by “utilizing a data-driven feedback loop,” according to its mission statement.
While part of the team has since split off to focus on Blackbox, an educational program and startup accelerator, Herrmann and Marmer have continued toiling away at Startup Genome, collecting data from the some-16K startups that signed up for Startup Compass — and beyond. Today, a year removed from launch, the entrepreneurs believe that Startup Genome is finally crossing the threshold, reaching a critical mass of data on the world’s top entrepreneurial ecosystems.
With its data set growing, Startup Genome is beginning to launch a thorough, comparative analysis on those ecosystems in an effort to give startups a more granular glimpse into how (and at what rate) the world’s top entrepreneurial hubs are evolving — and which are leading the way.
Over the last five years, web (and the diversity of digital technologies that accompany it) have matured, which has, among other things, succeeded in bringing down the cost (and amount of capital needed) to launch a viable business — or at least a MVP. Concurrently, this has caused an explosion in the number of software companies being created (an element inherent to Marc Andreessen’s argument that software is eating the world) and, as a result, new ecosystems are popping up all over the globe to help grow these companies, help jumpstart those that follow in their footsteps, as well as light a fire under regional economic growth.
In terms of the overall health of the global economy, these fertile startup ecosystems are essential, as they have the potential to become both regional and global engines of job creation. In the U.S., for example, companies less than five years old created 44 million jobs over the last three decades and accounted for all net new jobs created in the U.S. over that period, according to the White House. This is the undercurrent that led to the uncharacteristic bipartisan support for the JOBS Act...
Below, you’ll find some 20-odd insights into those comparisons, intended to get entrepreneurs thinking about what’s working, and what isn’t. Readers can find more on how the report defines its terms in our coverage here or on the project’s blog here. There’s also more on how it defines “Types” here.
- Startup Throughput: Perhaps unsurprisingly, the Silicon Valley startup ecosystem continues to lead the way, but the gap is growing smaller every year. Silicon Valley’s ecosystem is currently 3-times bigger than New York City, 4.5-times bigger than London, 12.5-times bigger than Berlin, and 38-times larger than Boulder.
- Startup Success Rate: Proportionally..
Startup Genome is also offering a new ranking for the world’s top 25 startup ecosystems, ordered by their average throughput:
- Silicon Valley (San Francisco, Palo Alto, San Jose, Oakland)
- New York City (NYC, Brooklyn)
- Tel Aviv
- Los Angeles
- Sao Paulo
- Washington D.C.