Latest news with #GlobalStartupEcosystemRanking2025
Yahoo
16-06-2025
- Business
- Yahoo
Global start-up ecosystem value down, but AI-native start-ups on the rise
The global economy still cannot shake off the pandemic downturn, and that includes start-up ecosystems, according to the Global Startup Ecosystem Ranking 2025. However, the authors draw a comparison between the current phase of AI integration into the global economy and the early days of internet adoption. They note that the key difference is that the current rate of AI growth is exponentially higher. Early-stage funding deals and values have fallen dramatically since the early days of the pandemic. In the second half of 2021 (H2 2021), there were 13,215 deals valued at more than $60bn. By H2 2024, there was a fraction of this activity, with 5,391 deals valued at just over $20bn. The report also measures a decrease in ecosystem value, which it calculates through the sum of valuations of funded start-ups plus the post-money valuation in the past two-and-a-half years. There has been a 31% ecosystem value aggregate decrease in 2025. Out of the top 20 ecosystems the report measures, only three had positive growth in this area in the past year: Beijing, Los Angeles and Tokyo. The report emphasises the opportunities that can be created by AI native start-ups. It underlines the importance of diversifying development out of the US and China, which already receive most of the funding in the sector, so that opportunities can be created elsewhere. JF Gauthier, founder and CEO of Startup Genome (which authors the report), highlights that, currently, most AI budgets are being spent on infrastructure, research, and adoption of "existing AI solutions developed in the US and China". This means that entrepreneurial AI policy, the "engine of local job creation", according to Gauthier, is being overlooked. "Governments and agency leaders in charge of start-up ecosystems have, in this critical moment, the most important job of steering their societies to invest locally to produce long-term prosperity. Instead of investing 100% of the AI budget in the US and Chinese innovation – the value of which will be eroded by next year – allocate at least 25% of that investment to building your local AI-native start-up ecosystem," Gauthier advises. This embedded content is not available in your region. In creating the 2025 rankings, the report looked at six success factors: AI-native transition, funding, knowledge, market reach, performance, and talent and experience. It highlights South Korea's start-up policies, with the Seoul Metropolitan Government having invested $1.4bn (1.9trn won) in policies and initiatives over the past four years and therefore climbing 12 ranks. Singapore has also risen eight ranks since the mid 1990s through the pursuit of start-up-friendly policies. This embedded content is not available in your region. The factors weighed to rank emerging ecosystems are slightly different from those for the top locations. There is more focus on early-stage funding and less emphasis on the number of exits. Wuxi, China, attained the top spot in the ranking following a 67% increase in exits, with values over $50m (359.03m yuan). Jakarta gained four ranks and Istanbul ten, after an increase in funding and market reach. Riyadh has had the most significant growth in the Middle East and North Africa region, jumping from the 51–60 range in 2024 to the 21–30 range in 2025. This growth was fuelled by an increase in exits of more than $50m (SR187.5m), such as Rasan's $1.1bn exit. "Global start-up ecosystem value down, but AI-native start-ups on the rise – report" was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.


Economic Times
13-06-2025
- Business
- Economic Times
Bengaluru climbs to 14th place in Global Startup Ecosystem Report 2025
Bengaluru climbed seven spots to be placed as number 14 in the Global Startup Ecosystem Report 2025, prepared by Startup Genome, a global innovation ecosystem development Valley tops the list, followed by New York City, London and Tel Aviv. Boston and Beijing are tied for fifth place."Bengaluru recorded strong growth, climbing seven spots to rank #14 in the Global Startup Ecosystem Ranking 2025, driven by four major exits exceeding USD1 billion in 2024, with leading at a USD12 billion valuation," stated the Kharge, Karnataka's Minister of IT & BT and Science & Technology, said in a statement issued by his office on Friday, that the 2025 edition of the report highlights a significant power shift in global innovation, with rising Asian and mid-sized hubs making strong gains."Bengaluru's leap cements its transition from a "rising star" to a top-tier global startup hub, placing it shoulder-to-shoulder with global leaders like Paris (#12), Philadelphia (#13) and Seattle (#15)," he said. According to him, this surge has been powered by high-value exits, a thriving Deep Tech and AI boom, sectoral consistency, progressive policy and public investment and an exceptional tech talent base. He also pointed out that Bengaluru is now ranked #5 globally in AI and Big Data Startup Ecosystem Report 2025 was released on June 12 at VivaTech, Europe's biggest startup and tech event being held in Paris until June one of the comprehensive reports on startup ecosystems, Global Startup Ecosystem Report, now in its 13th year, has analysed data from over five million companies across 350-plus cities, according to Startup Genome website."This year's edition ranks the Top 40 global startup ecosystems and Top 100 emerging ecosystems, and delivers data-driven insights on innovation trends, investment flows, and evidence-based policy strategies from around the world," Francis Walther, Manager, Operations & Communication, Startup Genome, is quoted as saying in a press release issued by Startup Life Sciences, and Cleantech sectors stand out in Bengaluru for their robust talent density, strong support infrastructure, and thriving startup activity, the report to Karnataka Digital Economy Mission (KDEM), which has partnered with Startup Genome for the report, Bengaluru offers companies structural advantages, including a strong track record of scaling startups like Flipkart and Swiggy, major funding activity such as Zepto's USD 350 million raise in has also pointed to recent government investments of USD 48 million toward deep tech and Fund of Funds initiatives as well as new programs like ELEVATE 2024 and the Karnataka Accelerator Network for the vibrant ecosystem for startups in Bengaluru. "Bengaluru's dynamic startup ecosystem, backed by strong government support, global capital, and rising sectors like manufacturing, is propelling Karnataka onto the global map as a premier destination for innovation and entrepreneurship," Prashanth Prakash, Chairman of the Startup Vision Group for the Government of Karnataka and Founding Partner, Accel, is quoted as saying in Startup Genome's press release. In the Emerging Ecosystems Ranking 2025 (TOP 100), Pune too moved up significantly from the 91-100 range in 2024 to the 41-50 range this year. The ecosystem saw a billion dollar exit with retail startup being acquired for USD 2.8 billion.