Are you a startup company looking for investors and/or accelerators? To increase your likelihood of success, go where they are by joining a leading tech startup ecosystem. There are plenty of tech-oriented cities designed to scale up your startup.
In you search for the perfect tech startup ecosystem, remember to evaluate the unique needs of your business. Not all tech startup ecosystems are created equal and you need to find one that aligns with your vision and passion.
The following seven cities offer world-class resources and capital to help tech startups unlock rapid growth.
1. Silicon Valley
Silicon Valley in California supports more than 2,000 tech companies and captures 40% of US venture capital funding. The world’s largest tech giants, including Apple, Amazon, Google and Facebook, have their headquarters in the Bay Area around San Francisco.
The hundreds of tech companies within the immediate vicinity of each other promotes cross-fertilisation with some of the brightest tech minds in the world.
- Tech niche: software, EdTech, FinTech
- Investors: Accel Partners, Andressen Horowitz, Sequoia Capital
- Accelerators & Incubators: Edvenswa Tech, Y Combinator, 500 Startups, Women's Startup Lab, World Innovation Lab, GSVlabs, Prospect Silicon Valley
2. Sydney
Sydney is Australia’s startup capital, with 54% of all Australian tech startups launched in this city. There is a strong culture of research and innovation backed by one of the world’s most stable political, financial and regulatory regimes.
Similar to Kendall Square in Massachusetts and Station F in Paris, the Sydney Startup Hub is a new initiative of the NSW Government, the first of its kind in Australia and the largest in the southern hemisphere. It brings together some of Australia’s leading startups, incubators, accelerators and innovation programs under one roof to spark ideas, foster collaboration and allow participants access to funding, skills, networks and leadership.
- Tech niche: FinTech, BioTech, AgTech, MedTech
- Investors: Sydney Angels, Australian Investment Network, Next Investment Wave Sydney, Scale Investors
- Accelerators: H2 Fintech Accelerator, Startmate, muru-D, Slingshot Accelerator, INCUBATE
Related: 7 reasons Startups are expanding to Sydney
3. Shanghai
Shanghai is the commercial centre of mainland China and is a growing hub for entrepreneurs. With a population of over 24 million, it is a global financial centre and an important transport hub with the world’s busiest container port. With the increase in tech and creative talent , more startups are being founded and developed in Shanghai.
This cosmopolitan city ranks 2 in China and 10 globally, based on the strength of its startup ecosystem. It is well connected with numerous incubators, accelerators, VCs, co-working spaces and other founder-focused programs.
Shanghai was recently selected as a future tech leader because of it’s growing base of digital media and entertainment companies as well as its strong position in the financial markets and numerous high-tech parks.
This particular ecosystem is known for gaming industry and female entrepreneurship. Along with New York City and Los Angeles, Shanghai is one of only three ecosystems to crack top 10 in both female entrepreneurship and global performance. Shanghai is also the host of ChinaJoy, Asia's largest gaming expo.
- Tech niche: gaming, Fintech
- Investors: Homsun Capital, SAIC Capital, Qiming Venture Partners, V-Capital, SAIC Capital
- Accelerators: Chinaaccelator, JadeValue, Bits x Bites, Cantor Jungle, Future Hub, Fundamental Labs, Transist Impacts Labs, MYTECH, Max-elerator
4. New York
New York City is the world’s second-largest tech ecosystem and the world’s 3rd most valuable, housing up to 7,800 active startups with an estimated value of $71 billion. The ability to scale up fast is here, with venture capital funding of approximately $568,000 available for early investment stages.
New York has a large number of venture capitalists, a supportive tech community and an extensive pool of talent to draw on.
- Tech niche: FinTech, fashion
- Investors: RRE Ventures, Great Oaks VC, Union Square Ventures
- Accelerators: Grand Central Tech, Betaworks, Entrepreneurs Roundtable Accelerator, AngelPad, BluePrint Health, Dreamit, US Edtech accelerator
5. London
London produces more startups than any other city in Europe, estimated at more that 60 startups an hour! Enticing tax breaks make it easier there to start a company and get investment. Despite leaving the EU, London is predicted to enjoy continual growth to the point of becoming the world’s next Silicon Valley.
London’s ecosystem has one of the widest ranges of tech startups sectors, including fashion, media, design, marketing, property and finance.
- Tech niche: data innovation and infrastructure
- Investors: Helion Venture Partners, Accel Partners, Blume Ventures, Sequoia Capital India
- Accelerators: Founders Factory, Collider, CyLon, JLAB, Level39, TrueStart, MassChallenge, Wayra
6. Toronto
Toronto is one of the world’s most high-tech cities and set to be one of the world’s leading tech innovations centres for many more years. The city produces more than $52 million in economic output per annum and is home to 30% of Canada’s info tech firms.
A unique feature of Toronto’s startup community is its high number of tech students. Around 150,000 students live within 90 minutes of the city centre and form a pool of talent accessed by the likes of Google and Facebook.
- Tech niche: FinTech, BioTech
- Investors: SurePath Capital Partners, CMERS Ventures, Kiass Capital, Three Angels Capital Accelerators: TheNext36, INcubes, Creative Destruction, The DMZ, Highline
- Accelerators: Techstars Toronto Accelerator, Creative Destruction Lab, Founder Institute Toronto, gBETA Toronto, IDEABOOST, JLABS, LaunchYU
7. Tel Aviv
Tel Aviv is Israel’s business capital, a hotspot for cybersecurity and mobility technology and one of the most active startup ecosystems in the world. It currently supports more than 70 multinational tech corporate giants such as Google, Apple, Intel, Facebook and Microsoft.
Tel Aviv’s startup community is close-knit with Meetup groups for almost every tech area. However, you will need to consider the high cost of living, poor public transport and cultural differences.
- Tech niche: cybersecurity and mobility technology
- Investors: 83North, Pontifax Funds, Greenfield Cities Holdings, Pitango Venture Capital
- Accelerators: The Bridge by Coca Cola, 8200 EISP, The Hive by Gvahim, Sigma Labs, Nielsen Innovate
The benefits of joining a tech ecosystem include access to venture capital, investors, accelerators, mentors, co-working spaces and other tech community hubs. In such a fertile ecosystem, there are opportunities for your tech company to grow at an accelerated rate, problem-solve more efficiently and effectively and generate ideas, products and services for the future.
Related: The Elevator pitch is critical for Entrepreneurs and Startup Founders
Have you noticed our #FridayExpertTips... here's one that relates to #Technology
“Be flexible and listen to the market: Even if you nail down the perfect niche, it won’t necessarily remain the same forever. Markets can be fickle. If you can’t pivot and react when the winds of change come, you’ll be blown away.”
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