A Note From the Global Entrepreneurship Network

As we present the Global Startup Ecosystem Report for 2025, we find ourselves at a pivotal juncture in the evolution of global entrepreneurship. The tectonic shifts of the past year – marked by volatile markets, technological revolutions, and geopolitical recalibrations – have reshaped the startup landscape. What is the impact of the so-called “Magnificent Seven” (Alphabet, Amazon, Apple, META Platforms, Microsoft, Nvidia, and Tesla) shedding nearly $3 trillion in market value in one quarter? This report captures the challenges and opportunities of this moment, offering a roadmap for ecosystems to thrive in an era of unprecedented change.

A Landscape Transformed

The data reveals a stark reality: ecosystem value has declined globally by a median of 24% among last year’s top 40 ecosystems, driven by fewer and smaller exits. Despite this, innovators continue to rewrite the rules of engagement. From Seoul’s AI-driven startups to Philadelphia’s cluster strategy, entrepreneurs are proving that economic winters nurture the seeds of spring.

With 40% fewer large exits (over $50 million) in the GSER 2024 vs. 2025 and reduced “resource recycling” of capital and talent, the need for adaptive policies is great. However, this challenge underscores a deeper truth: ecosystems are not defined by capital alone, but by the tenacity of their builders. The rise of Shenzhen, Hangzhou, and Tokyo, alongside non-Asian climbers like Paris and Philadelphia, reveals a new geography of innovation. These hubs exemplify how localized strategies, smart pivots, academic-industry collaboration, and sectoral focus can defy macro trends.

The AI Imperative: The Bold Change the World

It comes as no surprise that the data shows AI eclipsing all other growth sectors. Silicon Valley remains dominant in AI funding, with over $30 billion invested in 2023–2024. Yet, Beijing’s ecosystem is even more AI-intensive - for every $3 invested in new startups, $2 is directed toward AI companies. This strategic focus signals that bold ecosystems are not waiting for the future; they are building it now. 

The rise of Hangzhou’s DeepSeek, which developed a globally-competitive technology in under eighteen months, demonstrates that in the age of AI, decisive action can rapidly disrupt established hierarchies. The lesson is unmistakable: the bold change the world. Ecosystems that move rapidly to develop AI-specific strategies will reap the greatest rewards. Those that hesitate risk being left behind as value creation accelerates around them.

Disruption as Opportunity

Disruption, often perceived as a threat, is, in fact, the engine that propels entrepreneurial ecosystems forward. Disruption challenges complacency and forces both startups and incumbents to reimagine what is possible, to break free from traditional models, and to deliver greater value to society. In today’s rapidly evolving landscape, adaptability is not simply a virtue, but a necessity. Ecosystems that embrace disruption, foster a culture of experimentation, and proactively innovate are the ones that will define the next era of growth. As we celebrate the rebels and visionaries who turn turbulence into transformation, we reaffirm that disruption, however painful to incumbents, is not destruction - it is the alchemy that forges new pathways to progress.

The GSER is both a warning and a compass. The “funding winter” and exit drought demand vigilance, but they also illuminate pathways for renewal. AI’s rise, coupled with the resilience of ascendant ecosystems, offers a blueprint for recovery.

Its message to policymakers, investors, and ecosystem builders is clear: be audacious in vision, rigorous in execution, and unyielding in measurement. Track not just funding, but the determinants of entrepreneurial performance - job creation, inclusion, and sustainable impact.

"Ecosystems that embrace disruption, foster a culture of experimentation, and proactively innovate are the ones that will define the next era of growth."