A Note From a Founder

As we present Startup Genome’s 2024 Global Startup Ecosystem Report, we find ourselves at a pivotal moment in the tech world. The rapid growth of generative AI has been transformative, raising both exciting prospects and important concerns. Ethical AI is at the top of our minds, but the re-concentration of global startup ecosystems is also an essential issue for us, considering our mission to ensure every city and country captures its fair share of the new economy. Silicon Valley’s renewed dominance—with San Francisco’s Mission District attracting top AI talent in a new gold rush—prompts questions about global equity in innovation. Yet, the broader perspective offered by our global work also makes us optimistic, as we find remarkable AI models and startups emerging worldwide, from Abu Dhabi to Montréal, Tokyo to Bangalore. These diverse ecosystems are thriving, demonstrating that groundbreaking technology knows no borders.

Another crucial trend is the increasing commitment of entrepreneurs and ecosystems, with the support of governments, to address the climate crisis. Cleantech has emerged as the only growing startup sub-sector besides AI. This response to urgent environmental challenges underscores the potential of startups to develop solutions and drive substantial global change, not only in technology, but also in sustainability. Thankfully, along with our economies, global startup ecosystems are on the brink of a new growth cycle. A slight yet significant uptick in investments in the first quarter of 2024 suggests that we may have reached the bottom of the recent funding downturn. History tells us that those who invest during or immediately after a downturn reap the highest benefits. Now is the time to start building, capitalizing on the unique opportunities that arise in times of transition.

Finally, we have undeniably entered the era of scaleups. Governments worldwide recognize that their long term investments in startup ecosystems will only pay off if their homegrown startups succeed globally. This necessitates global mentorship and commercialization support from governments and startup communities. The Startup Genome Scaleup Report provides a compass to navigate the characteristics and strategies that enable startups to scale globally. For instance, our global research shows that early-stage startups with a majority of foreign customers are more than twice as likely to reach valuations exceeding $50 million and become unicorns.