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The AI race is on: Startup ecosystems in the crosshairs of a new era
The AI race is on: Startup ecosystems in the crosshairs of a new era

IOL News

time03-07-2025

  • Business
  • IOL News

The AI race is on: Startup ecosystems in the crosshairs of a new era

The startup world has exhaled and taken off in a full sprint, straight into the AI era, says the author Image: RON AI When I wrote about the 2024 Global Startup Ecosystem Report (GSER) last year, it felt like the world of startups was holding its breath, hopeful, but cautious. We were all waiting to see what would come next. Now, here we are in 2025, and that moment of pause is well and truly over. The startup world has exhaled and taken off in a full sprint, straight into the AI era. This year, the newly released GSER 2025, now in its 13th edition, hits a different note entirely. It doesn't just take stock of where we are, it challenges us to rethink where we're going. With insights drawn from over 5 million startups across more than 350 ecosystems, this year's report is, more than anything, a bold invitation to act. Each ecosystem in the GSER 2025 is evaluated across six key success factors — Performance (total startup and exit valuations), Funding (early- and late-stage capital and large exits), Talent & Experience (quality and track record of founders and workforce), Market Reach (local and global customer access), Knowledge (research output and innovation capacity), and, new for 2025, AI-Native Readiness (the ecosystem's transition to AI-driven innovation in startups, funding, and policy). The GSER 2024 painted a picture of stagnation in the post-Covid tech sector, with exits and funding levels far below pre-pandemic highs. The world's top ecosystems — Silicon Valley, London, and New York — held their positions, buffered by deep capital and talent reserves. But signs of movement were already evident: Tel Aviv surged to tie with Los Angeles for 4th, and Tokyo cracked the top 10 for the first time, backed by state-led innovation strategies. Fast forward to 2025, and the ground has visibly shifted. Silicon Valley, no surprises here, is still king of the hill. But London, which had been comfortably sharing the silver medal with New York since 2020, has now been bumped to bronze. The real headline, though, is Tel Aviv's rise to fourth place outright, a climb powered by Israel's long-standing strategic investments and its central role in the global AI revolution. China, which saw a dip in rankings last year, rebounded strongly in 2025 with notable improvements in rankings for cities such as Beijing and Shanghai, Europe faced a decline in ecosystem value apart from Paris which ascended to the 12th position. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The overall picture painted by GSER 2025 indicates a shifting focus; ecosystems that effectively incorporate AI technologies are likely to have a competitive edge, while those that remain anchored in outdated models risk obsolescence. The funding landscape wasn't entirely bleak. While overall startup ecosystem value declined, one sector surged ahead: Artificial Intelligence. AI startups didn't just weather the downturn; they thrived, capturing 40% of global VC funding in 2025, up from 26% in 2021. Last year, Nairobi led the Sub-Saharan pack, with Lagos, Cape Town, and Johannesburg following. In 2025, Lagos takes the lead, boosted by three unicorns (Flutterwave, Moniepoint, and Andela) and a strengthened fintech backbone. Cape Town remains the only African city in the Top 100 Emerging Ecosystems, while Johannesburg, despite its wealth of financial institutions and Africa's largest stock exchange, continues to lag behind in ecosystem index rankings. As South Africa contemplates its evolving role within this global context, the GSER 2025 delivers a clear directive: governments must allocate at least 25% of AI transition budgets to entrepreneurial ecosystems; not just to academic research or infrastructure. The path forward is clear: act locally, partner globally, and ride the AI wave with policy and precision. For me, the GSER 2025 rings louder and more urgently than any report before it. The message is clear: the next generation of innovation won't wait for those who hesitate. Ecosystems that move quickly to embrace AI, and ensure its benefits are widely shared, will be the ones that shape the future. Boitshoko Shoke, Research & Impact Manager at 22 On Sloane. Image: Supplied Boitshoko Shoke, Research & Impact Manager at 22 On Sloane. *** The views expressed here do not necessarily represent those of Independent Media or IOL BUSINESS REPORT

Abu Dhabi Startup Ecosystem Ranks 3rd in MENA for Performance Amid Global Slowdown - Middle East Business News and Information
Abu Dhabi Startup Ecosystem Ranks 3rd in MENA for Performance Amid Global Slowdown - Middle East Business News and Information

Mid East Info

time17-06-2025

  • Business
  • Mid East Info

Abu Dhabi Startup Ecosystem Ranks 3rd in MENA for Performance Amid Global Slowdown - Middle East Business News and Information

Startup Genome launches the world's most comprehensive report on startup ecosystems, released at VivaTech Paris Abu Dhabi, UAE — June, 2025 —Abu Dhabi's startup ecosystem has made remarkable strides, emerging as one of the fastest-growing hubs in the Middle East and North Africa (MENA), according to the 2025 Global Startup Ecosystem Report (GSER) launched today at VivaTech in Paris. Recognized as the world's most comprehensive research on startup ecosystems, the GSER leverages the largest quality-controlled dataset in the industry, analyzing data from over 5 million companies across 350+ entrepreneurial innovation ecosystems worldwide. The GSER 2025 highlights Abu Dhabi's impressive leap into the top emerging global ecosystems, ranking in the #51-60 tier, up from its previous #61-70 position. This advancement comes despite a global 14% decline in overall startup ecosystem value. Notably, Abu Dhabi generated $4.4 billion (approximately AED 16.2 billion) in Ecosystem Value between July 1, 2022, and December 31, 2024, marking a 6% annual growth. Abu Dhabi also ranked 3rd in the MENA region for Performance, a category that evaluates startup success through valuations and exit activity. This recognition reinforces Abu Dhabi's position as a dynamic, results-driven hub for entrepreneurship and innovation. 'Abu Dhabi's rise in the global rankings is a testament to the exceptional pace and cohesion of its innovation ecosystem, with Hub71 at the heart of this transformation. Amid a global downturn in startup ecosystem value, Abu Dhabi's long-term vision is beginning to pay off – demonstrating bold leadership and collaborative strength. We expect this momentum to continue, with Abu Dhabi poised to grow at a faster rate than many global peers in the years ahead.' says Samantha Evans, Managing Director MENA, Startup Genome. The report also places Abu Dhabi among the top five ecosystems in MENA across several core categories, including Knowledge, Funding, and Talent & Experience. Additionally, the emirate was recognized among the region's best for 'Bang for Buck,' reflecting efficient use of venture capital and a strong return on investment. Ahmad Ali Alwan, CEO of Hub71, said: 'Abu Dhabi's rise in global rankings reflects the strength of our startup community and the impact of Hub71's ecosystem-enabling initiatives. Over the past six years, Hub71 has built a connected network of founders, investors, corporates, and global partners, enabling sustainable startup growth, international scaling, and the evolution of Abu Dhabi's early-stage technology landscape. This progress is driven by Abu Dhabi's deliberate focus on innovation and technology, alongside an increasingly agile business and regulatory environment. Hub71 and its startups continue to benefit from a compelling Abu Dhabi value proposition, allowing them to contribute meaningfully to the emirate's economic and technological ambitions.' Sectoral drivers of startup growth in Abu Dhabi: FinTech, ClimateTech, and Digital Assets are key strengths of Abu Dhabi's innovation landscape, supported extensively by strategic regulatory frameworks, and sector-specific infrastructure. Key developments including ADGM's expanded licensing frameworks, substantial venture funding, and strategic partnerships in sustainability-focused enterprises, and strategic alliances in blockchain technology, exemplify the emirate's deliberate and cohesive strategy for long-term economic diversification and innovation. Why startups choose Abu Dhabi: The emirate's appeal lies in forward-thinking policies, such as streamlined regulatory procedures and targeted government support for technology-driven sectors. Initiatives such as Khalifa Fund's MZN HUB are pivotal in bridging local startups with international innovation networks, further amplifying Abu Dhabi's global entrepreneurial influence. The GSER is widely regarded as the most comprehensive evaluation of global startup ecosystems, offering data-driven insights essential for policymakers, ecosystem leaders, and entrepreneurs worldwide. Abu Dhabi's consistent rise in global rankings over the past three years highlights the strength of its strategy and the growth of its startup ecosystem, positioning the emirate as a leading global hub for innovation. About HUB71: Hub71 is Abu Dhabi's global tech ecosystem that enables founders to build globally enduring homegrown tech companies in any sector by providing access to global markets, a capital ecosystem, a global network of partners, and a vibrant community filled with highly skilled talent governed by forward-thinking regulation. Backed by the Government of Abu Dhabi and Mubadala Investment Company, Hub71 is growing its vibrant community of tech startups, investors, government, and corporate partners to ensure the availability of investment, commercial activities, and incentives from the public and private sectors. Through Hub71's entrepreneurial infrastructure, value-add programs, enabling services and support packages, founders can build, and scale widely adopted technologies with purpose and impact. Hub71 is on a mission to introduce new minds and technologies to Abu Dhabi, finding new ways to build globally enduring technology companies and sustain the nation's continuous economic development. About STARTUP GENOME: Startup Genome is the world-leading innovation ecosystem development organization, having worked with more than 180 economic and innovation ministries and public/private agencies in over 65 countries. We work to catalyze startup success and ecosystem growth and ensure that all cities and countries capture their fair share of the new economy. Startup Genome strategy clients grew their ecosystem values 59% faster than peers (41% vs. 25%). On average, Startup Genome clients produced $1.4 billion per year more in ecosystem value from an average starting point of $9.2 billion. Our evidence-based ecosystem research, advisory, and scaleup programs are rooted in global experience with the world's largest AI-curated startup dataset and proprietary instruments developed from over a decade of primary research.

Abu Dhabi climbs startup ecosystem rankings despite global downturn
Abu Dhabi climbs startup ecosystem rankings despite global downturn

Al Etihad

time16-06-2025

  • Business
  • Al Etihad

Abu Dhabi climbs startup ecosystem rankings despite global downturn

17 June 2025 00:15 KHALED AL KHAWALDEH (ABU DHABI) Abu Dhabi's startup ecosystem has firmly established itself as one of the most dynamic in the Middle East and North Africa (MENA), ranking among the top five in the region in the 2025 Global Startup Ecosystem Report (GSER).The report - unveiled by Startup Genome at the recently concluded VivaTech in Paris -recognised the emirate's impressive rise in the rankings, despite a challenging global environment for startups. The GSER 2025 draws on data from more than five million companies across more than 350 ecosystems globally. This year's report highlights how Abu Dhabi soared into the top emerging global ecosystems, moving into the #51-60 tier, a significant leap from its previous #61-70 position. This advancement comes in a year when the global startup ecosystem value contracted by 14%, underscoring the emirate's resilience and strategic vision, the report said."Abu Dhabi's rise in the global rankings is a testament to the exceptional pace and cohesion of its innovation ecosystem, with Hub71 at the heart of this transformation," Samantha Evans, Managing Director MENA at Startup Genome, said in the report. "Amid a global downturn, Abu Dhabi's long-term vision and collaborative strength are driving sustained growth. We expect this momentum to accelerate, with Abu Dhabi poised to outperform many (of its) global peers in the coming years."According to the report, the emirate generated $4.4 billion in ecosystem value between July 2022 and December 2024, reflecting an annual growth rate of 6%. Abu Dhabi ranked among the top five MENA ecosystems in multiple key areas, including Performance (3rd), Knowledge (4th), Funding (5th), and the prominent Bang for Buck category, which measures the efficiency of capital deployment and returns on emirate ranked particularly high in the market reach of its ecosystem and funding availability; however, it showed room for improvement in knowledge and access to talent and Support for StartupsAccording to VivaTech, the success of Abu Dhabi's startup ecosystem is driven by a combination of forward-looking government policies, targeted funding initiatives, and a robust support infrastructure. "Abu Dhabi's rise in global rankings reflects the strength of our startup community and the impact of Hub71's ecosystem-enabling initiatives," Hub71 CEO Ahmad Ali Alwan said in the report. "Through strategic partnerships, access to capital, and a supportive regulatory environment, we are helping startups scale internationally and contribute to Abu Dhabi's economic and technological ambitions."Among the key sectors that are fuelling this growth are FinTech, ClimateTech, and Digital Assets, all underpinned by innovative regulatory frameworks and purpose-built infrastructure. Notable enablers such as the Abu Dhabi Global Market's (ADGM) expanded licensing frameworks and substantial venture funding have attracted both local and international entrepreneurs, particularly in sustainability and blockchain technology. Moreover, initiatives like the Khalifa Fund's MZN HUB have helped streamline regulatory processes and offer startups seamless access to global innovation networks, strengthening Abu Dhabi's influence on the international entrepreneurial stage.

Abu Dhabi startup ecosystem ranks 3rd in MENA for performance amid global slowdown
Abu Dhabi startup ecosystem ranks 3rd in MENA for performance amid global slowdown

Zawya

time16-06-2025

  • Business
  • Zawya

Abu Dhabi startup ecosystem ranks 3rd in MENA for performance amid global slowdown

Abu Dhabi, UAE — Abu Dhabi's startup ecosystem has made remarkable strides, emerging as one of the fastest-growing hubs in the Middle East and North Africa (MENA), according to the 2025 Global Startup Ecosystem Report (GSER) launched today at VivaTech in Paris. Recognized as the world's most comprehensive research on startup ecosystems, the GSER leverages the largest quality-controlled dataset in the industry, analyzing data from over 5 million companies across 350+ entrepreneurial innovation ecosystems worldwide. The GSER 2025 highlights Abu Dhabi's impressive leap into the top emerging global ecosystems, ranking in the #51-60 tier, up from its previous #61-70 position. This advancement comes despite a global 14% decline in overall startup ecosystem value. Notably, Abu Dhabi generated $4.4 billion (approximately AED 16.2 billion) in Ecosystem Value between July 1, 2022, and December 31, 2024, marking a 6% annual growth. Abu Dhabi also ranked 3rd in the MENA region for Performance, a category that evaluates startup success through valuations and exit activity. This recognition reinforces Abu Dhabi's position as a dynamic, results-driven hub for entrepreneurship and innovation. 'Abu Dhabi's rise in the global rankings is a testament to the exceptional pace and cohesion of its innovation ecosystem, with Hub71 at the heart of this transformation. Amid a global downturn in startup ecosystem value, Abu Dhabi's long-term vision is beginning to pay off - demonstrating bold leadership and collaborative strength. We expect this momentum to continue, with Abu Dhabi poised to grow at a faster rate than many global peers in the years ahead.' says Samantha Evans, Managing Director MENA, Startup Genome. The report also places Abu Dhabi among the top five ecosystems in MENA across several core categories, including Knowledge, Funding, and Talent & Experience. Additionally, the emirate was recognized among the region's best for "Bang for Buck," reflecting efficient use of venture capital and a strong return on investment. Ahmad Ali Alwan, CEO of Hub71, said: 'Abu Dhabi's rise in global rankings reflects the strength of our startup community and the impact of Hub71's ecosystem-enabling initiatives. Over the past six years, Hub71 has built a connected network of founders, investors, corporates, and global partners, enabling sustainable startup growth, international scaling, and the evolution of Abu Dhabi's early-stage technology landscape. This progress is driven by Abu Dhabi's deliberate focus on innovation and technology, alongside an increasingly agile business and regulatory environment. Hub71 and its startups continue to benefit from a compelling Abu Dhabi value proposition, allowing them to contribute meaningfully to the emirate's economic and technological ambitions.' Sectoral drivers of startup growth in Abu Dhabi: FinTech, ClimateTech, and Digital Assets are key strengths of Abu Dhabi's innovation landscape, supported extensively by strategic regulatory frameworks, and sector-specific infrastructure. Key developments including ADGM's expanded licensing frameworks, substantial venture funding, and strategic partnerships in sustainability-focused enterprises, and strategic alliances in blockchain technology, exemplify the emirate's deliberate and cohesive strategy for long-term economic diversification and innovation. Why startups choose Abu Dhabi: The emirate's appeal lies in forward-thinking policies, such as streamlined regulatory procedures and targeted government support for technology-driven sectors. Initiatives such as Khalifa Fund's MZN HUB are pivotal in bridging local startups with international innovation networks, further amplifying Abu Dhabi's global entrepreneurial influence. The GSER is widely regarded as the most comprehensive evaluation of global startup ecosystems, offering data-driven insights essential for policymakers, ecosystem leaders, and entrepreneurs worldwide. Abu Dhabi's consistent rise in global rankings over the past three years highlights the strength of its strategy and the growth of its startup ecosystem, positioning the emirate as a leading global hub for innovation. View the full report here - About HUB71 Hub71 is Abu Dhabi's global tech ecosystem that enables founders to build globally enduring homegrown tech companies in any sector by providing access to global markets, a capital ecosystem, a global network of partners, and a vibrant community filled with highly skilled talent governed by forward-thinking regulation. Backed by the Government of Abu Dhabi and Mubadala Investment Company, Hub71 is growing its vibrant community of tech startups, investors, government, and corporate partners to ensure the availability of investment, commercial activities, and incentives from the public and private sectors. Through Hub71's entrepreneurial infrastructure, value-add programs, enabling services and support packages, founders can build, and scale widely adopted technologies with purpose and impact. Hub71 is on a mission to introduce new minds and technologies to Abu Dhabi, finding new ways to build globally enduring technology companies and sustain the nation's continuous economic development. For more information visit and follow us on @Hub71AD #Hub71. About STARTUP GENOME Startup Genome is the world-leading innovation ecosystem development organization, having worked with more than 180 economic and innovation ministries and public/private agencies in over 65 countries. We work to catalyze startup success and ecosystem growth and ensure that all cities and countries capture their fair share of the new economy. Startup Genome strategy clients grew their ecosystem values 59% faster than peers (41% vs. 25%). On average, Startup Genome clients produced $1.4 billion per year more in ecosystem value from an average starting point of $9.2 billion. Our evidence-based ecosystem research, advisory, and scaleup programs are rooted in global experience with the world's largest AI-curated startup dataset and proprietary instruments developed from over a decade of primary research. For interviews and further inquiries, please contact: Franzis Walther Manager, Operations and Communications, Startup Genome franzis@ LinkedIn

Bengaluru ranks 14th among world's top startup ecosystems
Bengaluru ranks 14th among world's top startup ecosystems

Hans India

time16-06-2025

  • Business
  • Hans India

Bengaluru ranks 14th among world's top startup ecosystems

Bengaluru: Bengaluru, the capital of Karnataka and India's leading tech hub, has been ranked 14th in the world in the list of top 20 startup ecosystems, according to the Global Startup Ecosystem Report (GSER) 2025 by Startup Genome. The city has jumped seven places from its 21st rank last year, marking the biggest leap among the top 20 global startup cities. Bengaluru is also the highest-ranked Indian city in the report, ahead of Delhi (29th) and Mumbai (40th). Globally, Silicon Valley continues to hold the top position, followed by New York and London in second and third place, respectively. Bengaluru has also been ranked 5th among the top 50 cities in the Artificial Intelligence (AI) sector, reflecting its growing strength in deep tech and innovation. The GSER report highlighted the success of Indian startups in 2024, especially Bengaluru-based ventures, with several high-value IPOs like Indegene Rs 1.11 lakh crore, Swiggy Rs 96,000 crore, GoDigit Rs 30,000 crore and Blackbuck Rs 8,600 crore. These successful listings delivered significant returns to early investors and further boosted India's reputation as a thriving startup nation. The report credited Karnataka government's support for the deep tech ecosystem as one of the reasons behind Bengaluru's rise in global experts believe this global recognition will attract more investors, talent, and innovation to the city, strengthening its position as a leading startup hub in Asia.

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