The 24 states not included in the per capita ranking are: They are the ones who hold the keys to Israels thriving tech scene. North America can be considered the most successful region among startup ecosystems. This indicates that while they have flourishing startup economies, they dont encompass a large share of the population. Ive observed that islanderstypically develop a set of survival characteristics that allow them to flourish in a remote area. Chutzpah is Yiddish for having nerve, and being bold or audacious. Industry giants are looking toward a country that can be driven from one end to the other in about five hours for its outside-the-box entrepreneurship. Estonia leads Europe in startups, unicorns and investments per capita EU-Startups.com is the leading online magazine about startups in Europe. The country is home to a thriving startup scene with over +47 accelerators and incubators, +20 investment funds, +18 events and networking organizations, and many other ecosystem players. It also benefits from an established R&D infrastructure and a well-educated talent pool. Israel has many different cultures represented in its population. The report was published in December 2022 when the Estonian Startup Database showed 1,452 startups founded in Estonia. Israel received nearly $12 billion in foreign investment in 2013, has around 100 companies listed on the NASDAQ, and is home to more startups per capita than anywhere else in the world. For the full state-by-state results, see the chart below: Several data points call out for a bit more analysis. New Hampshire He later founded Modu, which holds the Guinness World Record for the worlds lightest Wifi phone, and today he acts as CEO of Comigo, his latest venture. Tiny Israel is a tech titan. With over 3M inhabitants, 90 % of all startup activity in the country happens in Buenos Aires (48). The startup ecosystem in Asia has seen a powerful growth over the past few years in countries like South Korea (19th), Singapore (ranked 21st), Japan (23th) and China (27th), and together with other Asian countries, the continent has produced around 60 unicorns. Its the United States. Look to foster long-term relationships with customers, partners, investors and employees. . According to Arieli, parents encourage children to build the bonfires themselves, even in the city of Tel Aviv. The bad news is that . Keeping in mind its demographic situation, market size, and inborn need for innovation and technology, it could definitely take a higher place in the startup ecosystem ranking. Survey disclosure: How they made their choices? They're also among the staunchest advocates of inviting Ukraine to join NATO, another . Other things that intrigued us were the massive gaps between regional leaders around the world. Tap into the game-changing opportunities and supportive environment to supercharge your business with us! encourages Peeterson. Tel Aviv contains more startups per capita than any city in the world other than Silicon Valley, according to the 2019 Global Startup Ecosystem Report published by Startup Genome and the Global Entrepreneurship Network. For a better understanding of how influential London is for the UK, note that the next city UK city on the list is Manchester at the 51stplace! With 4 times more startups per capita than the European average, it is safe to say that Estonia is the startup capital of Europe, Peeterson states. Operating in various sectors, Swiss startups are mainly prominent in fintech and blockchain, with the Zug region having even gained the nickname Crypto Valley.In Switzerland, the startup funding per capita was at around 440 per capita in 2022. Arkansas In her view, this helps kids form the soft skills they need to innovate when faced with lifes challenges later in life. Global startups - statistics & facts | Statista Of course, no list of startup hubs would be complete without talking about the second Silicon Valley Israel. This means that any business, startup or large corporation that aspires to succeed must think at a global scale from day zero. Estonia also benefits from the Estonian Startup Visa which supports increasing demand for talent in the tech and IT field. Among mid-sized countries, meanwhile, the U.K. was the standout, with an investment rate that works out to just under $500 per person. As soon as this statistic is updated, you will immediately be notified via e-mail. 2023 Crunchbase Inc. All Rights Reserved. In addition to sampling error, one should bear in mind that as in all survey research, there are possible sources of errorsuch as coverage, nonresponse, and measurement errorthat could affect the results. One failure caused the birth of dozens of new business ventures. San Francisco is the city with the most investments per capita invested $17.4 million per 1 million residents. In summary, human capital is the most important asset that Israel has. Latin Americas most populous nation pulled in less than $2 billion in total venture dollars from 2010 to 2015, per Crunchbase. She is passionate about social impact and partnerships between nonprofit and private sectors. Estonia, one of the smallest countries in the region, leads the whole of Europe when it comes to VC investments per capita as well as startup creation 1,967 per capita raised and one startup per 1,048 people which wont come as a surprise to many readers, wrote Sifted in 2021. 2023 Crunchbase Inc. All Rights Reserved. Countries with higest number of unicorns 2022 | Statista These limitations often include language differences and legal barriers that impede direct business collaboration and force startup ecosystems to function on a mostly local level. By Erica Snyder Tel Aviv contains more startups per capita than any city in the world other than Silicon Valley, according to the 2019 Global Startup Ecosystem Report published by Startup Genome and the Global Entrepreneurship Network. To put it mildly, differences were stark. In this case, VC investors are of a great assistance, and the increase in funding is mostly attributed to the launch of a Cairo-based VS, the 50 million dollar Algebra Ventures, that also supported several other famous Egyptian startups like WUZZUF, Swvl, and Vezeeta. We recently explored Swedens thriving startup scene, identifying 10 promising startups to watch this year. Now, its well over $10 billion in a single 12-month period. Total scores are out of 100. Moshe Hogeg holds all of these titles and more. Most Startup Friendly Countries In The World, 2021 General Methodology on the CEOWORLD magazine's Most Startup Friendly Countries In The World, 2021 Rankings. Estonia reigns supreme as the leader in investment promotion. The country is going from strength to strength every year, states Atomicos report. Originally from Russia, she is based in Hungary. Many Israelis dont take no for an answer, and they realize that sometimes its better to ask for forgiveness than to ask for permission. Based on the information in our report, there is a higher tendency of success for more balanced ecosystems, where hubs are evenly distributed around the country instead of taking root in only one city. Startup Nations: The 6 European countries with the most startup The list is huge and all the startup events and projects happen not only in the capital but in other 8 Danish cities that all fall into the top 1,000 rankings. Estonian Vok Bikes secures 3.8M to lead in smart mobility across Europe. Equity for startup advisors: How much equity should startup founders give to advisors? Additionally, we are only tracking deals in our database that are tagged as venture or seed-stage. There are a number of startup hubs around the world that have grabbed the spotlight. Latin America's most populous nation pulled in less than $2 billion in total venture dollars from 2010 to 2015, per Crunchbase. Israelis are often very direct in their approach, and this sometimes requires adjustment for non-Israelis at first. We are also talking 0% income tax on retained and reinvested profits, clear stock options regulation, plus double taxation treaties on file with at least 60 countries. These Countries Have The Most Startup Investment For Their Size Some of the most popular accelerators and incubators are Wayra Colombia, Ruta N, and INNpulsa. Here a big seminar on Chile-based startups is underway. According to Arieli, Modu raised more than US $120 million and opened subsidiaries around the world. Kids control the whole process, from collecting wood to igniting the actual flame. Egypt. Also, their latest addition is a global incubator, IncuBAte, that could be another center for entrepreneurship in the capital city, along with AreaTres and Startup Buenos Aires. Another surprising insight is that relatively tiny countries (less than 10 million inhabitants) are doing well in placing themselves amongst global leaders. Japan needs to develop a better infrastructure for startups and inspire youth to take more risks by joining smaller companies or building one themselves. Investment totals are for the 12-month period from Oct. 28, 2020, to Oct. 28, 2021. Tel Aviv ranked 7th in annual list of best global tech ecosystems South Korea is considered a culturally-closed region, and the deep-rooted entrepreneurial ideas of young people lean toward joining already existing large companies rather than creating startups by themselves. According to the. While Start-up Chile functions entirely in English, participants are invited to form their business in Chile and are encouraged to think globally. The United States has been recognized as the world's most entrepreneurial country, according to the CEOWORLD magazine Entrepreneurship Index, 2021, while Germany and the United Kingdom placed second and third, respectively. In general, Ive observed that Israelis also dont like the concept of impossible. If you want to get an Israeli to do something that seems difficult to achieve, you challenge them by saying something like, Oh, I dont think you can achieve this. So, have audacious goals and find a way to make things happen. According to the Estonian Startup Database, currently, there are 1400+ startups founded in Estonia a number that has continued to increase significantly and Estonia is a critical player in the European tech scene. Highest valued unicorn companies worldwide 2023, Average cost to start a company in the European Union 2018, by country, Number of European unicorns in 2021, by country, Highest valued unicorn companies in Europe 2021, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. The Fintech Times has listed 9 rocketing FinTechs from Estonia to keep an eye on as they are poised to reshape and transform the whole industry. Theres no other way. For the full state-by-state results, see the chart below: Several data points call out for a bit more analysis. Stay up to date with recent funding rounds, acquisitions, and more with the Once their visa is approved, they are eligible to apply for the fund, on the condition the operations remain based in Israel. In the second quarter, investors put $31.8 billion into seed- through growth-stage rounds for U.S. and Canadian startups, per preliminary Crunchbase Find the right companies, identify the right contacts, and connect with decision-makers with an all-in-one prospecting solution. NATO Summit Host Lithuania Is a Small Country With a Loud Voice The small Baltic countries are among the top contributors of military aid to Ukraine on a per-capita basis. We were able to see some mega-rounds such asNorthvolts2.5 billion Growth Equity, four funding rounds totalling 2.4 billion forKlarna,Epidemic SoundGrowth Equity rounds, andKrys Series D. There are a few reasons why Sweden is so attractive for startup founders. The United States is taking the lead in the Global Startup Ecosystem, and together with Canada is sharing a 1st and 3rd place in our ranking. Indias startup ecosystem has been actively collaborating with Japan, Israel, the UK, and China, and has received both internal and external VC and Angel support. The biggest gap is between the Americas. In this article, we discussed the results of our Startup Ecosystem Rankings Report and highlighted the top countries in the world along with the progress of their ecosystem. The State of European Tech 2022 report by Atomico highlights Estonia's continued leadership as the most entrepreneurial European country for tech startups. Hes helped found and invested in over 60 startups including Answers.com, SimilarWeb, and The Gift Project. The main Danish startup hub is in the capital, Copenhagen, where the biggest initiatives are available. A paid subscription is required for full access. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. According to Dealroom, half of the Swedish funding came outside of the European Union. Alaska This indicates that while they have flourishing startup economies, they dont encompass a large share of the population. The start-up rate is the percentage of 18-64 population who are currently actively involved in setting up a business they will own or co-own; this business has not paid salaries, wages, or any other payments to the owners for more than three months. Louisiana Prior to 2019, Tel Aviv contained the most startups per capita, even beating Silicon Valley. Oddly, I couldn't find this anywhere, so I calculated it. NATO summit host Lithuania is a small country with a loud voice Already knowing the potential for growing imperial-size brands that this country has, the startup ecosystem has a lot of potential to flourish. The State of Israel was established as a Jewish Democratic State, home to Jewish people from around the world. The World's Biggest Startups: Top Unicorns of 2021 - Visual Capitalist Egypt- spanning the northeast corner of Africa and southwest corner of Asia, Egypt is a bridge between two continents and ranks 60th on our top startup ecosystem country report. In 2022, Swedish companies raised about 570 per capita, which is considerably higher than the European average. Start-up rate by country 2020 | Statista Thanks to its tax legislation system, more and more startup founders are deciding to establish their businesses there. Currently, there are 167 startups in the country including 45 Foodtech startups in Iceland, 30 Energy & Environment startups in Iceland and 18 Health startups in Iceland. English has been the language of business for years now, and successful startups are focusing on the global market. Singapore The second Asian country in our ranking is Singapore, ranked 21st. If Israels tech industry could choose a representative to the countrys parliament, then Erel Margalit would probably be its top choice. Speaking of which, Estonia is a flagship tax-competitive country in the whole OECD. The country is very highly developed in terms of life expectancy, education, per capita income and other human development index indicators. In addition, about one-fifth of the population of Israel are Arabs (Muslims and Christians). In the global startup ecosystem ranking, 13 African countries are featured in the top 100, with South Africa, Kenya, and Egypt (ranked at 51, 52, 60) as top three for the continent. The United States secured its top spot for a number of reasons, its research and development (R&D) capacity key among them. Stockholm produces the second-highest number of billion-dollar tech companies per capita, after Silicon Valley, and in Sweden overall, there are 20 start-upshere defined as companies of any . However, Abrahami is helping Wix pave new ground, combining innovation with effective marketing to bring the platform to over 50 million users. The data collected shows the huge difference between USA and Canada (1st and 3rd) compared to leaders in Chile and Mexico (30th and 32nd); the same happens in the Middle East, where Israel is ranked 4th and its closest followers, the UAE and Egypt, rank 40th and 60th. Despite its small size, Estonia is a heavyweight in the European tech ecosystem. Inbal Arieli, Israeli entrepreneur and author of the book Chutzpah, says. Why Israel has so many startups? A major trade center in the past is now turning into an active startup hub that attracts VC, business Angels, and accelerators from around the globe to provide seed capital and mentorship. Germany Another high ranking country is Germany, boosted by newly coined startups that address health care, finance, and transportation. Wyoming What are the most entrepreneurial countries in the world? December 2018 Featured Hardware and IoT Startups. Its capital city, Berlin, like the country itself, ranks 7th in our global city rankings and has turned into the biggest startup hub in the EU over recent years. All the votes were added together to give a raw score. Menlo Media S.L. The Estonian Investment Agencys team is happy to help you via its complimentary e-Consulting service, organize online or offline follow-up events such as virtual investment visits and guide you through the fairly simple process of investing in Estonia. such as Storedot, Effective Space, Beyond Verbal and InfinityAR. The Only Countries Where Most People Are Not Biased Against Women You must innovate and create to survive. How is it possible that one country is great in all: founding startups, growing billion-dollar worth tech companies, and raising money? May 3, 2021. With a total score of 198.08, the U.S. had almost more than four times as many. To learn more, read our Privacy Policy. Ericsson, the communication technology giant, is set to make Estonia the next-generation smart R&D & manufacturing hub of its European operations with a 150M investment. Then you can access your favorite statistics via the star in the header. Despite this, it is pumping out impactful innovation and startups and the country is a regional leader in terms of forward-thinking tech, for instance, 98% of the countrys electricity comes from renewable sources. Well, in my opinion, its all about the people and the location. The ranking relied on surveys from 194,976 people from 95 countries in the Americas, Asia, Europe, and Africa. GDP and Startups: Correlations and Opportunities for growth These cities generally have startup-friendly policies and are convenient for doing business. To generate this ranking, special algorithms take into account thousands of data points, and based on this information, provide a quantity score (number of Startups, Coworking spaces, Accelerators and Global Influencers), quality score (monthly visits, authority, customer base, the number of unicorns-startups valued over $ 1 billion, and other factors), business score (factors that determine how easy it is to do business in a given location, the technological infrastructure, bureaucracy, red tape, and others) and total score (sum of quantity, quality and business environment). The Fintech Times: Estonias rocketing FinTechs to keep an eye on. Like Israel itself, these theories are interdisciplinary, so its hard to say whether their relationship to Israels success as a technological hub is an example of correlation or causation. More than 2,000 startups were founded in the past decade, as well as another 3,000 SMEs and high-tech companies, 30 growth companies, 50 large technology companies, and 300 R&D centers. We are trying to understand that phenomenon with the help of Eve Peeterson, head of Startup Estonia. > Share of people with no gender bias: 0.5%. How to Overcome It, Worlds Best Hospitality & Hotel Management Schools, 2023, Best Universities For Doctor of Business Administration (DBA), 2022, The Worlds Best Countries For Business For Non-European Investors. Boston and its environs, home to both Harvard University and the Massachusetts Institute of Technology, is a leading hub for biotech and deep tech. They learn many new things such as languages, people, culture, places, customs and sometimes even new norms. An economy needed to receive votes from at least 500 respondents to qualify for the list. Israel has earned the nickname "Startup Nation" for a very good reason: With a population of around 8.5 million, it has the largest number of startups per capita in the world, around one startup per 1,400 people. Lighting the bonfire is a cooperative experience, where kids learn to manage risks and build self-confidence through actual experiment and activity, Arieli says. The closest competitor is Luxembourg at 3.1 unicorns per million inhabitants, while the UK is at 1,6 and Germany near the EU average of 0,6. 8. Most entrepreneurial activity happens in the capital city of Bogota (52) or in nearby Medellin (107). Why choosing the right location for your startup matters? Another standout that requires a bit of explanation is the surprisingly high ranking for Estonia. Austria. Delaware Quite the opposite actually; there will be many, and Tel Aviv is just one. With examples like Waze, Viber, Payoneer, and Wiz, Israel is out in front of any other Middle East country (the UAE is 40th). Why Does Israel Have So Many Startups? - IEEE Entrepreneurship Unlike the UK, its 3 major hubs are located in different places: Vancouver, Toronto, and Montreal. In, GEM. South Korea home of Samsung, Hyundai Motor, and LG, South Korea stands tall at 19th. This places Estonia third in Europe regarding the number of startups per capita. Add CEOWORLD magazine to your Google News feed. Every multinational tech company, including Intel, IBM, Microsoft, Google, Facebook, and Apple, has a headquarters there to assist in building successful startup ecosystems. Another standout that requires a bit of explanation is the surprisingly high ranking for Estonia. Eve Peeterson explains in Life in Estonia magazine that despite Estonias relatively small population of approximately 1.3 million people, the country is big on advanced digital capability and creating an entrepreneurial-friendly environment. The pair, beyond serving as evangelists for the Israeli tech scene around the world, are also super-connectors helping to bridge the literal ocean between Israel and Silicon Valley. Israeli government as well that does an incredible job, Israel: The Secret for Startup Scene Success, StartupBlink has launched the Startup Ecosystem Ranking Report 2019 that now ranks 1,000 cities and 100 countries worldwide and is available for downloadhere. This disparity is due to the difference in the population that contributes to the GDP. Brazil 37th on the list is Brazil, with over 200 million inhabitants, many of whom are striving for the change. Some of the findings that stood out include: Massachusetts lead is large: Notably, the standout state on the list is Massachusetts. The market is just too small to enable a big economical success if one doesnt target international markets from the get-go. The Jewish people were scattered around the globe for thousands of years without a country of their own, and in the past 100 years, Jewish people from America, Europe, Africa, Asia and Australia are making Aliya (the Hebrew word for going up, which means relocating to Israel). In 2022, Estonia was sitting at about 9800 invested per capita, smashing the European average of just 130. Germanys startup ecosystem is distributed in other cities too, and 4 of them have placed themselves in the top 100, starting with Munich (41st), Hamburg (61st), Frankfurt (94th) and Cologne (98th). They have helped create some of the most well-known Israeli startup success stories, such as: Viber, Everything.me, StoreDot, Yo, and Applause, while also helping craft the digital messaging for giants like HP and Applied Materials. In addition, he has raised incredible sums from global business leaders, tech veterans, and celebrities alike. What are the opportunities in specific sectors? Thus, many more people can access the resources that such spaces offer. Accessed July 09, 2023. https://www.statista.com/statistics/268786/start-ups-in-leading-economic-nations/, GEM. Tel Aviv contains more startups per capita than any city in the world other than Silicon Valley, according to the 2019 Global Startup Ecosystem Report published by Startup Genome and the Global Entrepreneurship Network. Its capital city, Tokyo, ranks 14th in the world and is Japans main hub. Even though communities are often looked at as social structures, it seems that they are indispensable for startup ecosystems too. Sweden Many funding possibilities, great technological infrastructure, and convenient policies attract startup creators to Sweden. British startups currently represent 10% of the global fintech market share with an annual average value of more than 11 billion. What's New Why Does Israel Have So Many Startups? Around 150 support organisations, from startup incubators to investment funds, are available to help accelerate your business. Show sources information By using our websites, you agree to the placement of these cookies. The PR Pros Ayelet Noff and Motti Peer: This power couple runs award-winning new media PR agency Blonde 2.0. Fill out oure-Consulting form, and one of our investment advisors will get in touch soon. Egypt is doing really well in ICT, which requires small investments in the seed stage while larger investment areas like hardware, industrial, and agricultural sectors are still challenging for startups. More than 77% of unicorns valued above $10 billion are categorized directly in tech-related fields, primarily in financial and commerce software. Despite the fact that these two countries have relatively high costs of living, they provide excellent conditions for business development. It wouldnt be fair to talk about Start-up Nation insiders without mentioning the man who helped coin the phrase in the first place. Everywhere else its called a USB flash drive or thumb drive. In others, it plays a much smaller role. The current Chief Scientist, Avi Hasson, was previously a partner at a leading investment firm, and understands the funding needs of young companies. This country takes the leaders position in Scandinavia and ranks 6th. What about other great ideas and even wiser minds? When it comes to famous startups, Stockholm (ranking at 24th) boasts brands like Skype, Spotify, SoundCloud, King, Minecraft, and TrueCaller. Chile One of the most prosperous economies in Latin America, Chile is 30th in our ranking. So far, Estonia has been the birthplace of 10 unicorns: Skype in 2005, Playtech in 2007, Wise in 2015, Bolt in 2018, Pipedrive in 2020, Zego, ID.me and Gelato in 2021, Veriff and Glia in 2022. Since the programmes inception, over 2,700 applications have been received from startups wishing to move to Estonia. Most importantly his background is simply incredible: Former CEO of 888 Holdings for years, and investor in Kenshoo, Playtika, Bizzabo, myThings, MyHeritage, SweetIM, and more.