A Note From the Global Entrepreneurship Network

The Global Entrepreneurship Network (GEN) is delighted to continue its longstanding collaboration with Startup Genome, marking the ninth consecutive year of our joint publication. We invite you to delve into the report’s findings to engage with the data and trends that we use in designing and improving programs, policies, and strategies to unleash innovation and opportunity around the world.

Entrepreneurs Navigate the VC Winter

It will come as a shock to no one that the waters entrepreneurs operate in are far choppier than in recent years. Global conflict, inflation, and the threat of recession have undoubtedly left their dent on the volume and value of deals in 2023. Yet longtime observers of the global startup ecosystem will attest that trouble is opportunity and that often, the most skilled entrepreneurial minds thrive in times of austerity where they innovate to overcome barriers that seem insurmountable to others.

The past year has been a testament to the tenacity of entrepreneurs worldwide, who have navigated through the “VC Winter” with the same spirit of innovation that has always been the hallmark of this vibrant community. In the face of decreased funding, startups have continued to push the boundaries of possibility, proving that even during economic downturns, the seeds of progress are sown.

Concentrating on the Technological Revolution

Scientist Roy Amara once said, “Technological revolutions are invariably overestimated in the short term and underestimated in the long term.” Many are predicting this to be the case with AI, where the long term work being conducted could far outweigh the initial bang created by ChatGPT. Indeed, the data shows that while funding has decreased overall, investors consolidated around critical sectors such as generative AI and Cleantech in 2023. This level of discipline and precision is essential from entrepreneurs, investors, and policymakers alike in this challenging environment.

Smaller Ecosystems Thrive

We created the Global Entrepreneurship Network to spread entrepreneurial culture to all communities across the globe. My belief now – as it was then – is that no single culture or ecosystem has a monopoly on good ideas and, more importantly, that every person excluded from entrepreneurship is a loss to the entire global community. Big ecosystems have led for many years, but a new picture is emerging that shows our mission is bearing fruit with an increased proportion of funding going to ecosystems outside of the Top 10.