Global Startup Ecosystem Ranking 2024 (Top 40)

This ranking identifies the Top 40 global ecosystems. These ecosystems are more mature than other ecosystems globally, featuring more large exits (valued over $50 million) and more funding activity.

For more information about how this ranking is created, please see the Methodology section of this report.

• The top three ecosystems have maintained their same positions from 2020, with Silicon Valley remaining at the top, followed by New York City and London tied for #2.
• Tel Aviv has moved up one rank and is now tied with Los Angeles at #4.
• Tokyo has entered the Top 10, moving up an impressive five places to #10 from #15 in the GSER 2023, marking the most significant improvement among the Top 10 ecosystems.
• Seoul has moved up three spots and is now ranked #9, entering the Top 10 ecosystems.
• Miami has also made impressive progress, reaching #16 in the Top 20 ecosystems, an improvement of seven positions from last year.
• The top two Chinese ecosystems have dropped in the overall rankings: Beijing by one place and Shanghai by two, now standing at #8 and #11, respectively. However, Shenzhen has shown impressive growth, moving up seven spots to rank #28.
• Paris has moved up an impressive four places from last year to reach #14.
• Both Zurich and Munich have moved up by five and four positions, respectively, entering the top 35 at #31 and #33.

Global Leaders

North America remains the globally-leading region regarding the number of tech startup ecosystems in the ranking (18 of the Top 40). The top five global ecosystems remain unchanged from 2020, with Silicon Valley at #1 and New York City and London tied at #2. Last year, GSER 2023, Los Angeles was #4, followed by Tel Aviv at #5 – however, this year, they are tied at #4. These top five account for a collective $4.4 trillion in Ecosystem Value, 54% of the total of the Top 40 ecosystems. The remaining 35 ecosystems are collectively worth $4 trillion in Ecosystem Value.

Silicon Valley accounts for 59% of the total Ecosystem Value within the Top 5 global ecosystems – up 3% since last year. A significant factor in Silicon Valley’s success has been its late-stage funding (Series B+). Global late- stage funding amount decreased 39% in 2023 compared to 2022, but only 6% in Silicon Valley. As a result, in 2023, Silicon Valley increased its global share of late- stage funding to 26%, even as its deal count share has decreased. Since 2022, fewer startups are securing late- stage deals in the world’s top ecosystem, but those that do obtain larger amounts – led by Silicon Valley-based AI companies such as OpenAI, Inflection, Databricks, and Anthropic all securing considerable deals in 2023

London remains Europe’s leading startup ecosystem. However, 2023 was a disappointing year for large exits, as in many ecosystems. London did not have an exit valued above $1 billion in 2023, compared to three in 2022 and 12 in 2021. Yet it was not all bad news. While London’s late-stage funding amount was down 40% in 2023 compared to 2022, H2 2023 saw an encouraging rebound compared to the first half of the year, led by startups such as the AI computer vision startup Metropolis and Relativity Space, an advanced aerospace manufacturing startup. Some exciting early- stage startups may also provide momentum for the ecosystem as we enter 2024. ArtBio, a cancer treatment biotech startup, and Tenpoint Therapeutics, a cell engineering biotech startup, secured large Series A rounds of $90 million and $70 million, respectively.

"Silicon Valley accounts for 59% of the total Ecosystem Value within the Top 5 global ecosystems."

New York City was the only Top 5 ecosystem to see a slight increase in the value of its large exits ($50M+) in 2023 compared to 2022 – even as its count of large exits declined. This slight increase was due to the exit of Better, the real estate Fintech startup valued at nearly $8 billion. Better was the highest-valued exit in New York City since Braze in 2021, valued at exactly $8 billion. While the number of Series A deals in 2023 was down in New York City, the average deal size was $12.4M, up slightly from 2022 – making it the only Top 5 global ecosystem to experience an increase. Some leading Series A deals include the Edtech startup Paradigm, which raised a $203M round, and the biotech startup Tourmaline Bio, which raised $112M.

Los Angeles maintained its #4 global ecosystem rank from last year, two years after jumping from #6. The value of its large exits ($50M+) fell 36% in 2023 compared to 2022, which was less of a decline than London, Silicon Valley, or Tel Aviv. The largest exit was the gaming startup Scopely, valued at nearly $5 billion – topping any exit the ecosystem had in 2022. Los Angeles was the only ecosystem to see an increase in its active unicorns, from 41 to 42, in the 30 months leading to the end of 2023 (July 1, 2021–December 31, 2023) compared to the previous 30 month period (July 1, 2020–December 31, 2022). The ecosystem added three new unicorns to its active list:

• The advanced auto manufacturing startup Divergent 3D
• The Cleantech startup Newlight Technologies
• The cloud platform startup Restaurant365

Tel Aviv moved up one spot from last year, GSER 2023, to tie Los Angeles as the #4 ranked global ecosystem. While its large exits ($50M+) were down overall in 2023 compared to 2022, it led all Top 5 ecosystems other than Silicon Valley in the number of large exits it had in H2 2023, with seven. The largest exit was Oddity, the consumer tech brand that exited via an IPO on the Nasdaq stock exchange, valued at over $2 billion. However, this was Tel Aviv’s only $1 billion exit in 2023, compared to seven in 2021.

Hot Spots & Rising Ecosystems

Two Asian ecosystems, Tokyo and Seoul, made the most significant strides among the Top 10 ecosystems this year. Seoul improved three ranks to #9, its best performance since 2022 when it was #10. In 2021, Seoul reached $83 billion in Exit Value – 4th among global ecosystems – which has powered the ecosystem’s performance even as its exits have declined. In 2023, it had a $1 billion exit with  the ecosystem will likely experience an increase in exit activity as its number of active unicorns has increased to 20 over the 30 months ending in 2023, 4th among Asian ecosystems and 11th globally.

Tokyo jumped five ranks this year to #10, the most substantial improvement among the Top 10 and its best placement since 2021 when it was #9. In 2023, Tokyo had 11 large exits ($50M+), tied with Boston and behind just Silicon Valley and Tel Aviv for the most among the Top 10 global ecosystems. However, it has not had a $1 billion exit since 2021 and currently has only four active unicorns spanning the 30 months to the end of 2023, tied for 40th among all global ecosystems. However, Tokyo can improve its ecosystem scaling conditions by building upon the new capital and experience released by its recent large exits.

"Tokyo jumped five ranks this year to #10"

Paris also improved this year, moving four ranks to #14, its best showing since 2022 when it was #15. It is the rare ecosystem that has not had a steep drop in its number of exits since 2021 – its 289 total exits from 2022 to 2023 is 5th most globally. However, its Exit Value over that period is 24th, demonstrating that its value per exit is low compared to the top global ecosystems. It has not had a $1 billion exit since 2020 with Galileo Global Education. Yet the exciting story out of Paris in 2023 was Mistral.ai, the generative AI startup that raised over $500 million, becoming the leading global AI startup based outside the U.S.

Miami improved seven ranks to #16, continuing its impressive recent climb, which began at #31 (tied) in 2022. Its $2.1 billion Exit Value in 2023 is the 13th highest globally, led by Redzone Software, a digital manufacturing collaboration startup acquired at $885M, and Freightos, a supply chain startup, as part of a merger valued at $500M. While its late-stage funding declined in 2023, several Miami startups show strong promise, including the Blockchain startup QuickNode, which raised a $88M Series B round; the Fintech startup NYMBUS  raised a $70M Series B round.

After falling to #35 in last year’s rankings, Shenzhen improved to #27. Its Exit Value was $10 billion in 2023, the 5th highest globally, a massive improvement from 2022 when it was less than $100 million. Shenzhen’s two leading exits in 2023 were UBTech Robotics and Intellifusion – both AI-powered robotics startups that completed IPOs in 2023 valued at nearly $5 billion each. These Shenzhen-based companies should attract more AI and robotics talent to the area as the ecosystem has proven it can effectively scale successful Deep Tech startups.

Two European ecosystems also made substantial improvements this year. Zurich, tied for #36 last year, GSER 2023, moved up five ranks to #31. In the 30 months to the end of 2023, it had five large exits, tied for 8th among European ecosystems. Due to its status as a global finance hub, Zurich has a thriving Fintech ecosystem, which is reflected in some of its recent large exits, including Crypto Finance AG, which was acquired by Deutsche Börse Group in 2021 valued at $280M, and SecurionPay, a mobile payment startup acquired in 2022 for $125M. However, Zurich also has an emergent Life Sciences ecosystem, as evidenced by two 2023 Series A deals – $40M for the infectious disease startup LimmaTech Biologics AG and $36M for the AI-medical imaging startup Laza Medical.

Munich is another European ecosystem making strides this year, moving four ranks to #33. In the 30 months to the end of 2023, it had seven large exits, tied for 5th among European ecosystems. Munich is well-positioned to increase its exit count in the coming years as it had 23 late-stage deals (Series B+) in 2023, 5th in Europe, and just one behind Berlin and Stockholm. Its leading late-stage funding startups include the AI- defense startup Helsing and the aerospace startup Isar Aerospace, which raised over $100M in 2023. The success of these firms shows that Deep Tech is becoming a strength in Munich.

Cooling Ecosystems

The two leading Chinese ecosystems, Beijing and Shanghai, fell slightly this year. Beijing, ranked as high as #4 in 2022, is now #8. One of its principal constraintsis the number of deals its startups obtain despite its size. In the 30 months leading to the end of 2023, Beijing had 223 Series A deals, 11th globally, and just 60 total exits, 58th globally. However, despite the few overall exits, Beijing still has a strong future due to the size of its exits. In the 30 months leading to the end of 2023, Beijing had 16 $1 billion exits, second only to Silicon Valley globally.

Shanghai fell two ranks to #11 for similar reasons to Beijing. While its 12 $1 billion exits in the 30 months leading to the end of 2023 were 4th globally, it only had 52 total exits over that same period – 64th globally. Taking advantage of the capital and experience generated by these $1 billion exits will be critical to Shanghai’s future success.

Two U.S. ecosystems, however, had the most significant rankings fall among the top 20 ecosystems this year. San Diego fell three ranks to #19. As a Life Sciences hub, it reached #13 in 2022, powered by five $1 billion exits in 2021 – all of which were Life Sciences and Medtech startups that investors favored during the Covid era. It had its first $1 billion exit in 2023 when Novartis acquired Dtx Pharma. However, the future is looking up despite declining Life Sciences funding. In 2023, San Diego had five startups that obtained a Series A round greater than $50 million – 5th globally. All of these were Life Science-related startups.

Seattle fell the farthest among the Top 40 ecosystems – 10 ranks to #20. Its ten large exits in the 30 months leading to the end of 2023 were 26th globally. It only had two in 2023. The ecosystem is on a downcycle overall as its Series A deals have also slowed. In 2022, Seattle startups secured 53 Series A deals, 6th among U.S. ecosystems, but in 2023, this has fallen to 25, 10th among U.S. ecosystems. Seattle’s late-stage startups have been more successful. In 2023, Seattle startups secured 49 late-stage deals (Series B+), 5th among U.S. ecosystems. With startups like Avalyn Pharma (inhalation therapy), Pivotal Commware (network connectivity), and Stoke Space (aerospace) all receiving $100 million late-stage rounds in 2023, Seattle has shown that it can still produce scalable Deep Tech startups.

Mumbai also experienced a rankings decline this year, falling six spots to #37. In 2021, Mumbai’s seven large exits were 6th among Asian ecosystems; however, in 2022, this number dropped to three, and in 2023, zero. Unfortunately, early-stage deals have followed a similar trajectory. While Mumbai startups secured 31 Series A deals in 2021, 9th among Asian ecosystems, there were just 11 deals in 2023, tied for 17th. Mumbai still has many strengths it can leverage. Because of its market size, B2C startups that achieve product-market fit have tremendous scaling opportunities. The grocery delivery startup Zepto, based in Mumbai, became a unicorn in 2023 following its $200M Series E round. Zepto will undoubtedly be a large exit candidate soon, recycling that much-needed capital and managerial talent into the ecosystem. Mintifi, a Fintech startup focused on small business lending, raised $160 between Series C and D rounds in 2022 and 2023, respectively.

Success Factor Highlights

To create the 2024 rankings, we measured five Success Factors in each ecosystem:

• Performance
• Funding
• Market Reach
• Talent & Experience
• Knowledge

Each of these factors is assessed and awarded a score of 1 to 10, with 1 being the lowest and 10 being the highest. For more information, please see the Methodology section.

Performance

The Performance Success Factor assesses:

• Exits: The number of exits over $50 million and $1 billion, as well as the growth of exits.
• Ecosystem Value: A measure of the economic impact of the ecosystem, calculated as the total exit valuation and startup valuations over a two-and-a-half-year time period.
• Startup Success: How many startups succeed in the ecosystem. Measured in early-stage success (ratio of Series B to Series A companies), late-stage success (ratio of Series C to A companies, and speed to exits (both to IPO and other exits).

Funding

The Funding Success Factor assesses:

• Access: A function of early-stage funding volume and growth.
• Quality & Activity: The number of local investors; those investors’ experience (average years investing and exit ratio); and their level of activity (percentage of investors active in 2022 and the number of new investors.

Market Reach

The Market Reach Success Factor assesses:

• 75% Local Reach
  • 45% Scaleup Production
    • 50% ratio of startups with $1 billion+ valuations to GDP from H2 2021–2023
    • 40% ratio of $50 million+ exits to GDP from H2 2021–2023
    • 10% log of ratio of exits over $50 million from H2 2021–2023 to Series A funding in the first from H2 2021- 2023
      
  • 30% Local Market
    • 90% from the log of GDP of the country
    • 10% from tiers of average number of days to commercialization of IP assets
      
• 25% Global Reach
  • 60% ratio of tech startups (formed after 2012) with international secondary offices
  • 20% from the log of tech companies with secondary offices in the ecosystem
  • 20% from the log of international investors

Talent & Experience

The Talent & Experience Success Factor assesses:

• Tech Talent
  • Quality & Access: A function of the number and density of top developers on GitHub, English proficiency, and history of exits. Quality is also a proxy for experienced scaled teams in the ecosystem.
  • Cost: Cost efficiency average of software engineer salaries. (Higher salaries lead to lower scores.)
• Life Sciences Talent
  • STEM Access: Number of STEM students and graduates.
  • LS Access: Number of Life Sciences-focused universities and degree programs.
  • LS Quality: A function of Life Sciences quality of instruction and research at local universities as measured by the Shanghai Rankings.
• Experience
  • Scaling Experience: The cumulative number of significant exits (over $50 million and over $1 billion) over 10 years for startups founded in the ecosystem.
  • Startup Experience: The cumulative number of early-stage companies started and funded at the Series A stage.
    

Knowledge

The Knowledge Success Factor assesses:

• Patents: The volume, complexity, and potential patents generated in the ecosystem.
• Research: Based on the H-Index, a measure of publication impact, this metric looks at the production of research at the country level.