The Global Startup Ecosystem Report 2026
The Global Startup Ecosystem Report 2026 (GSER 2026) is a comprehensive analysis of the current state of startup ecosystems worldwide.
Introduction
The Global Startup Ecosystem Report 2026 (GSER 2026) is a comprehensive analysis of the current state of startup ecosystems worldwide.
Now in its 14th year, the GSER provides insights into the world’s leading startup ecosystems, emerging trends, and key challenges facing entrepreneurs. It is based on extensive research and analysis of data from 5.5 million+ startups across 350+ global ecosystems and over a decade of independent research and providing policy advice to more than 200 economic and innovation ministries and public/private agencies in over 65 countries.
With the GSER 2026, we hope to provide valuable perspective on the global startup landscape and actionable recommendations for entrepreneurs, investors, policymakers, and other stakeholders looking to drive innovation and economic growth even in these challenging times.
Key Insights
Global startup funding is in measured recovery after two years of contraction. Late-stage funding rose approximately 17% in 2025 to around $210 billion, surpassing pre-pandemic levels, while Series A funding grew a more modest 2% to $46.5 billion — now 13% above pre-pandemic levels. Early 2026 signals a sharper acceleration, with Q1 Series A up 28% over the 2025 quarterly average.
North America now accounts for 64% of global late-stage funding — up from 56% in 2021 — and Ecosystem Value in Silicon Valley has surpassed $3 trillion, nearly 3x the next largest ecosystem. North American Ecosystem Value grew 51% since GSER 2025, versus a global increase of 33%.
AI is no longer a discrete sector — it is a general-purpose technology reshaping every area of startup activity. Total funding for AI-Native startups grew 218% from 2021 to 2025, while overall tech funding shrank 36% over the same period. The Ecosystem Value of AI-Native firms has grown 969% since GSER 2021, compared with 101% for non-AI tech.
Late-stage funding into AI-Native companies more than doubled in 2025 to $108 billion — over half of all late-stage funding globally.
AI-Native funding remains heavily concentrated: North American startups received 73% of all early-stage and 86% of all late-stage global funding. Silicon Valley and Beijing continue to dominate, reinforced by large-scale state-backed investment vehicles such as Beijing's $1.4 billion AI Industry Investment Fund.
Exits recovered sharply in 2025, with total exit value rising 164% year-on-year to nearly $800 billion — significantly above pre-pandemic levels, though still below the 2021 peak. Large exits (over $50 million) saw a 112% increase in value, and AI-Native exit value alone jumped over 500% to $243 billion.
DefenseTech is the fastest-growing sector outside of AI, with Series A value up approximately 60% and deal counts up 15% over the past year, as European VC constraints on defense investment give way to geopolitical realities.
Seed funding is undergoing a structural shift driven by AI: large VC funds are deploying checks of $20–50 million at seed stage to lock in top AI-Native startups early.