The market is just too small to enable a big economical success if one doesnt target international markets from the get-go. Part of that mindset probably comes from languagethe definition of failure differs in Hebrewwhile another part comes from the culture itself. This shows that hubs can be successful even in relatively small nations. Tel Aviv University is ranked #8 globally for the number of VC-backed entrepreneurs among alumni. Its a consumer brand an area where Israel hasnt shined in the past. Global Startup Ecosystem 2022: Ranking 1,000 Cities and 100 Countries 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. Japan Japan ranks 23rd. 2023 Crunchbase Inc. All Rights Reserved. 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. Struggling with poor infrastructure, lack of health care, and consistent political challenges, startups find it difficult to function properly or attract the interest of global markets, and therefore Africa must deal with local problems first. Part of that mindset probably comes from language, the definition of failure differs in Hebrew, 3 Challenges to Solve Before We Can Commute by Air Taxi, Students Develop Low-Cost Wearable Device for the Visually Impaired. Guided by the most popular government-backed accelerator worldwide, Start-up Chile, it aims to establish an entrepreneurial scene for innovation-thirsty Chileans. 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. Kansas Theres less pressure to sell early, he says, which is a key reason why theres now a record number of unicorns based in Israel. In its 2021 report, Atomico points out that cumulatively, Estonia is the second in Europe in terms of capital invested per capita in 2017-2021. Not by chance are all these successful companies like ResearchGate and Babble, as well as Rocket Internet, a very large incubator, establishing in the capital. Recent history shows things can turn rather quickly, with countries sometimes seeing venture investment multiply several fold in a few years. Sweden Many funding possibilities, great technological infrastructure, and convenient policies attract startup creators to Sweden. 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. Most Influential Countries. Take Colombia. On the opposite hemisphere, the Latin American startup ecosystem is just starting to transform the way people look at it. All Israelis are drafted into the army, known as the Israel Defense Forces (IDF), at the age of 18 and required to serve at least two years. Now, it's well over $10 billion in a single 12-month period. One area where Israel has lagged behind is in the creation of large, independent companies. Most Startup Friendly Countries In The World, 2021 Austria ranks #15 on our list of Top 15 Most Advanced Countries in the World given its modern economy and GDP per capita of $53,267.93 in 2021. More rapid growth in South Africa is feasible only if the government is willing to play its role by creating global developmental programmes and easing the process of running businesses. Rubinstein believes that process begins with human capital, and the Innovation Authority is trying to create infrastructure for the next generation of data scientists and coders to live and work there, with hopes of seeing more such companies based in Israel. Regardless of a promising future on the horizon, the continent is facing a few barriers that prevent access to the bigger markets. Delaware Despite its geographical isolation, Chile is exceeding all expectations in building a startup ecosystem. How To Position Your Brand To Win In The 21st Century, Praise: Promoting A Business Not Dependent On Conflict, Not All Office Space Is Created Equal: Utilizing First-Class Space, How To Select An IT Service Provider For Small Business Owners, AI Actually Has The Potential To Make Work More Human, Wake Up, Be Woke And Lead The Change: Overcoming DE&I Opposition. South Korea home of Samsung, Hyundai Motor, and LG, South Korea stands tall at 19th. Since the programmes inception, over 2,700 applications have been received from startups wishing to move to Estonia. Add the affordable high quality of life, top-notch human capital, as well as a trustworthy legal system to the equation, and you have the most favourable and thriving business climate in existence, Peeterson adds. The remaining 24 states1 With more than $2,000 in per capita funding this past year, its clear the momentum is continuing. It is important to point out that other US cities are by no means less important, and 8 of them (New York, Los Angeles, Boston, Chicago, Seattle, and others) are featured in the top 20 startup cities. ByteDance, for example, was valued. 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. Crunchbase Daily. Local government helps fosters entrepreneurship through various funding bodies, including SPRING Startup Enterprise Development, the Early Stage Venture Fund, Technology Incubation, and the Sector-Specific Accelerator programs. However, this continent has shown amazing results in our startup ecosystem ranking. Many Israelis dont take no for an answer, and they realize that sometimes its better to ask for forgiveness than to ask for permission. 7. and over 1Mio. 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. 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. What countries have the most unicorns (i.e., billion-dollar startup companies) per capita (i.e., per person)? The country brought us pioneering companies like Nokia, Rovio and Wolt and its consistently setting itself apart for embracing green technologies and digital advancement. You may opt-out of your consent at any time by changing the settings of the device you are using and deleting your saved cookies. European startup ecosystem ranking per capita and per GDP 2022 was a record-breaking year for Finland, with new milestones being reached and impressive funding deals being closed. In terms of funding, many foreign entrepreneurs with no ties to Israel also choose to base their startups in the small country. 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. Overall, more than 2.2 billion was raised by tech companies in 2022 and the country is counting around 30 unicorns in total:SonarSource, Scandit and Climeworks. Estonia leads Europe in startups, unicorns and investments per capita The main issue that impedes it from taking over the global market is its focus on local markets. With a headcount of over 10,000 people, those companies are still actively hiring and boosting the economy. The most common issue facing the entire region is a lack of ecosystems and collaboration in general. We recently took an in-depth look at the nations ecosystem, identifying 10 startups you should be keeping a close eye on. This is a challenge South Korea must overcome. Israel has long been known as the Startup Nation with more than 6,000 active startups, making it the world leader for startups per capita. The country is very highly developed in terms of life expectancy, education, per capita income and other human development index indicators. Estonia ranks third in Europe regarding the highest number of startups The top-ranked economy receives 100 points. 4) Technical Workforce This composite measures the relative presence of high-end technical and scientific talent. Startups in the Southeast Asian city-state pulled in $4.1 billion, equivalent to around $695 for each person, PitchBook data showed. Beautiful, interesting, and informative maps. GEM. NATO Summit Host Lithuania Is a Small Country With a Loud Voice Countries with higest number of unicorns 2022 | Statista Equity for startup advisors: How much equity should startup founders give to advisors? By continuing to browse this webpage or closing this notice, you consent to the use of cookies. VCs are now more willing to bet on unicorns and scale-up companies, Gura says. Singer was able to gain an insiders perspective on Israel after years of reporting on the countrys tech scene for The Wall Street Journal, The Washington, The Jerusalem Post, and other publications. The United States was by far the best country for startups in 2023, according to data provided by StartupBlink. While raising Zebra-Meds first venture capital (VC) funding years ago, Gura says he found more success in securing capital in Silicon Valley. The bad news is that . Estonia leads Europe in startups, unicorns and investments per capita Best countries for startups globally by total score 2023 | Statista And even though the newest report counts only half of that, it still makes Estonia the leader in unicorns per capita in Europe. Expertise from Forbes Councils members, operated under license. The State of European Tech 2022 report by Atomico highlights Estonia's continued leadership as the most entrepreneurial European country for tech startups. That's the good news. You must innovate and create to survive. Most Startup Friendly Countries In The World, 2021 General Methodology on the CEOWORLD magazine's Most Startup Friendly Countries In The World, 2021 Rankings. The country has created an accommodating environment for startups. What countries have the most startup companies per capita? - Quora Climeworks, specializing in carbon dioxide air capture technology, raised 600 million. Over the past 12 months, however, Colombian companies pulled in close to $1.2 billion across more than 100 rounds. The World Ranking on Twitter: "The most meat consuming countries of Another surprising insight is that relatively tiny countries (less than 10 million inhabitants) are doing well in placing themselves amongst global leaders. 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. Here, unrelated field entrepreneurs and startup creators gather in particular places just for like-minders, like Tokyos Entrepreneur Plaza for AI and Finolab for Fintech. This tiny nation, whose name doesn't even fit within its borders on most world maps, is also home to the highest number of engineers per capita and Its common for Israeli parents to encourage an entrepreneurial spirit in their children, and she believes this does influence startup culture there. Currently, you are using a shared account. "The most meat consuming countries of the world (annual consumption per capita): Hong Kong: 137 kg USA: 124 kg Australia: 121 kg Argentina: 109 kg New Zealand: 100 kg Spain: 97 kg Israel: 97 kg Portugal: 94 kg Mongolia: 88 kg UK: 79 kg Brazil:" Alabama Note: the number of startups per country is not covered in State of European Tech Report 2018 . North American Startup EcosystemsLatin American Startup EcosystemsEuropean Startup EcosystemsAsian Startup EcosystemsAfrican Startup Ecosystems. The report points to the Tnufa National Pre-Seed Fund, which is a risk-free grant that the government awards to entrepreneurs based in Israel to explore innovative technology. Thats 7.7 unicorns per million capita. Unicorns Made in China Although China did not have the highest number of unicorns worldwide, the country was home to some of the world's most important ones. World's Most Entrepreneurial Countries, 2021 - CEOWORLD magazine Denmark In 16th place stands Denmark, one of the most digitized and innovative countries in Europe. Overall, Crunchbase data showed that companies in the remaining 24 states collectively pulled in just shy of $3 billion in venture funding over the past 12 months not including Delaware, which is hard to quantify for funding as many companies incorporate in the state but do not have a significant presence there beyond that. According to Peeterson, the community saw the need for hiring new talent from abroad, which gave birth to the idea of implementing a Startup Visa programme in 2017. Kenya Stands at 52nd place on the worlds country ranking and it is an epicenter of the tech startup scene in East Africa. Margalit now serves on the Finance and Science & Technology committees, where he is well positioned to advance the Israeli tech industry from within the confines of the government. But we wanted to investigate a little further to find out which nations are the most investment-happy. 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. In her view, this helps kids form the soft skills they need to innovate when faced with lifes challenges later in life. In 2022 Estonia went even further, with investment levels at a 3,6% share of GDP. > Share with at least 2 biases against women: 94.8%. In 2022, Swedish companies raised about 570 per capita, which is considerably higher than the European average. According to Arieli, parents encourage children to build the bonfires themselves, even in the city of Tel Aviv. To use individual functions (e.g., mark statistics as favourites, set Venture capitalist and Zebra Medical Vision CEO Eyal Gura says at Zebra-Med, a digital healthcare startup that incorporates AI into radiology, 100 percent of the Israel-based team has served in the IDFand Gura says everyone has benefitted from the IDFs network. In addition to exposing troops to advanced technology, the IDF also forces collaboration in high-risk situations, which is vital at a startup like Zebra-Med where teams must seamlessly work together everyday. How to benefit from the e-solutions and the efficiency of our business culture? Germany Another high ranking country is Germany, boosted by newly coined startups that address health care, finance, and transportation. According to Arieli, parents encourage children to build the bonfires themselves, even in the city of Tel Aviv. Startup ecosystems can be found in a wide range of locations, and the number of such hubs is increasing faster than ever before. Iceland is rapidly becoming known for its fresh approach to innovation and exciting entrepreneurial stories. Thanks to simplified regulations for VC companies, startups can access the capital easier. Stay up to date with recent funding rounds, acquisitions, and more with the While it shows a comparably lower number of startups than China or Japan, the average quality index is higher. Available: https://www.statista.com/statistics/268786/start-ups-in-leading-economic-nations/, Start-up rate worldwide in 2020, by country, Immediate access to statistics, forecasts & reports, Start-up rate globally in 2020, by country, Number of global unicorns in April 2023, by region, Number of investments in startups in Europe 2015-2021, Gender distribution of startup founders in European countries 2018, Average number of days register a firm in Europe 2019, by country, Europe: distribution of startups 2018, by source of financing, Europe: distribution of startups 2018, by geographical revenue source, Startups in Europe 2018, by development stage, Startups in selected European countries 2018, by development stage, Startups in Europe 2018, by industry sector, One-year business survival rates in Europe 2018, by country, New business registrations in the EU 2020, Early-stage entrepreneurial activity rate in Europe, by country 2022, Cities with highest business startup rate in the UK 2021, Cities with lowest business startup rate in the United Kingdom (UK) 2018, Startup distribution in Germany in 2022, by state, Number of European unicorns in 2021, by industry, Highest valued unicorn companies in the UK 2022, Highest valued unicorn companies in Germany 2021, New entrepreneurial activity share worldwide, by region and industry 2017, U.S. new entrepreneur rate 2000-2021, by race, U.S. new entrepreneur rate 2000-2021, by nativity, U.S. new entrepreneur rate U.S. 2000-2021, by age, Number of start-ups in South Korea 2019, by business age, U.S. new entrepreneur rate 2000-2021, by gender, Share of entrepreneurs, by race U.S. 1996-2021, Cities with the highest percentage of female entrepreneurs 2015, Business foundations of startups in the United Kingdom (UK) 2016, Business foundations of startups in Portugal in 2016, Number of startups closed in Israel 2014-2017, Situation of start-up companies in Poland 2018, Barriers to technological start-up development in Poland 2018, Initiatives to establish start-up in Poland 2018, Find your information in our database containing over 20,000 reports. They can have limited resources available at hand and must be resourceful and find new innovative ways of doing things in a more optimized manner. It is a great place for social impact and sustainable business. In this article, we will discuss top-ranked countries in 2018 from each of these regions. This indicates that while they have flourishing startup economies, they dont encompass a large share of the population. If you are an admin, please authenticate by logging in again. (adsbygoogle = window.adsbygoogle || []).push({}); The votes are in, people and the most startup-friendly country in the world is (Drum roll, please.). Of course, that doesnt mean it all stays local, particularly given the rise in remote hiring and the propensity of California startups to build secondary hubs in lower-cost locations. 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. The fundingup to NIS 200,000 over the course of two yearsallows recipients to develop their ideas without taking on debt or venturecapital. Venture capital investment is a major economic driver in some U.S. states. Other things that intrigued us were the massive gaps between regional leaders around the world. But first, lets see the facts. UK The UK is the 2nd country in our ranking, thanks largely to London (ranked 3rd globally for cities) where the majority of accelerators, coworking spaces, and startups are located. In Israel, you need look no further than Gigi Levy. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Creator of the insanely successful and simple messaging app Yo. Detailed survey data and information collected directly from 194,976 individuals, across 256 data points. So, when things scale, they can scale fast. Colombia ranked 34th, Colombia is rising from its troubled past as an attractive country for tourists and business people. The No 1 choice of each respondent was awarded 10pts, No 2 given 9pts, down to 1pt for their No 10 choice. The 24 states not included in the per capita ranking are: Most Powerful Countries. Cape Town, the countrys capital, ranks 157th on our top startup ecosystem city ranking and has relatively well-developed accelerators, networking spaces, and associations to assist, educate, and unite entrepreneurs. 2) Research and Development: This examines a countrys research and development (R&D) capacity to see if it has the facilities that attract funding and create innovations that could be commercialized and contribute to economic growth. For the fourth year in a row, Estonia takes first place in Emerging Europes ranking of investment promotion agencies, thanks to its innovative use of digital tools, AI and precise communication. In the United Kingdom the start-up rate amounted to 5.2 percent in. Singer is a co-author of the now famous book that examines how tiny Israel became a center for innovation and tech development, attracting investment and partnerships from nearly every corner of the world. But now, he says Israeli VCs are more mature and understand the importance of patience when working toward long-term goals. Want to join the club and invest in the Estonian Unicorn Factory? 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. June 1, 2022 Singapore has attracted more venture capital investment per capita in 2022 than all other countries receiving over $1 billion. How to Pitch Your Hardware and IoT Startup? With more start-ups per capita than any other country,1 Israel is second only to Silicon Valley in its level of innovation, with a ratio of 1 start-up per 1,400 people. For example, the internet in Estonia is recognized as a basic human right, making it a leader in IT, cybersecurity and government. But among all countries, the U.S. ranks fourth in per capita startup investment. 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 . By using our websites, you agree to the placement of these cookies. Show sources information Why Communities are Critical for Startup Ecosystem Development? When it comes to famous startups, Stockholm (ranking at 24th) boasts brands like Skype, Spotify, SoundCloud, King, Minecraft, and TrueCaller. You may opt-out by. Overall Score (100%) is the sum of: In 2016 alone, Israeli startups raised a record $4.8 billion from investors, while high-tech and startup companies were sold for $10.02 billion through acquisitions or IPO's. Israel is also home to the highest number of engineers per capita and has the world's 2nd highest R&D expenditure as percent of GDP (4.3%). The capital city has become a hub for tech, music, and gaming startups, and has the 2nd highest unicorns per capita after Silicon Valley. Rhode Island The company aims to help customers split the costs of air tickets. In all of the top 3 countries, English is the native language and the countries themselves receive a boost in technology and economics, as well as access to the worlds biggest consumer markets. Mississippi All the votes were added together to give a raw score. Between 2010 and 2015, the country attracted just around $150 million in total venture funding, per Crunchbase data. When one thinks about technology and startup ecosystems, the very first continent that comes to mind is probably the USA, thanks to Silicon Valley, while Asia remains more of a mystery for most people. Whatever you call it, these small devices have become a ubiquitous form of storage that are so common (and affordable) they are often given away for free. A paid subscription is required for full access. Louisiana 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. Americas strengths include a very high rate of startups, robust angel and venture funding. Ericsson puts 150M for a new smart manufacturing and R&D hub in Estonia. Canada does not have an overly strict immigration policy, and its startup scene is open for everyone. So far this year, the four largest funding recipientshealth plan provider Devoted Health, e-commerce aggregators Thrasio and Perch, and identity-management provider Transmit Securitycollectively pulled in over $4.2 billion. It is clear that the tides of [], Download the Global Startup Ecosystem Index Unlock the full list of Influencers with the StartupBlink Pro Purchase Now Key Insights: US Entrepreneurs are in a much better position to become influencers The United States has 130 influencers, representing 80% of all influencers globally, mainly hailing from major cities such as San Francisco, New York, []. Latin Americas most populous nation pulled in less than $2 billion in total venture dollars from 2010 to 2015, per Crunchbase. 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. 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. Among mid-sized countries, meanwhile, the U.K. was the standout, with an investment rate that works out to just under $500 per person. Results ranged from a high of over $4,350 per capita (Massachusetts) to a low of $110 per person (Michigan).