Startup benchmarker Compass released its second report on the topic of startup ecosystems. This report is designed to create metrics around the viability of launching a startup in a variety of different markets.
Compass worked with Deloite, Cruchbase, Orb Intelligence, Global Entrepreneurship Week and 60 local partners to evaluate the viability of each market. Data was gathered from over 200 interviews and 11,000 surveys of local startups and investors from 25 countries. This is one of the most comprehensive reports on the topic to date. Any new tech business would be smart to consider these factors before deciding in which city they would like to operate. Here are some of the characteristics of startup ecosystem that were evaluated.
Defined by availability of funds from VCs and the average amount of time it takes to complete funding.
Top ranking (in order): Silicon Valley, New York City, Los Angeles, Boston and Tel Aviv.
Is calculated using a combination of total funds raised and total number of new startups.
Top ranking (in order) – Silicon Valley, New York, Boston, Los Angeles and London.
Defined by access to customers that will allow the business to scale up rapidly. This also considers the market’s ability to scale rapidly
Top ranking (in order): New York City, Los Angeles, London, Silicon Valley and Chicago.
Defined by quality, availability and cost of technical talent.
Top ranking (in order): Silicon Valley, Moscow, Tel Aviv, Seattle and Austin.
This metric is created using a weighted average of all the topics
Top ranking (in order): Silcon Valley, New York, Los Angeles, Boston and Tel Aviv.
Hopefully this information will help you decide what startup ecosystem is best for your company. But don’t forget, or overlook, opportunities that may be represented by locations that are not among the top ten. Sometimes a great resource can be the one you, but not the rest of the world, know about, as long as you still evaluate it rigorously and realistically.