Last year, we covered an ambitious collaborative R&D project called “Startup Genome,” created by three young entrepreneurs, Bjoern Herrmann, Max Marmer, and Ertan Dogrultan. The goal of the ongoing project was (and is) to take a comprehensive, data-driven dive into what makes tech startups successful — and not so successful.
Out of its research came, among other things, Startup Compass: A free benchmarking tool that leverages its data to allow entrepreneurs to evaluate their progress compared to other startups in their space. The product’s overarching goal is to allow founders to make more informed product and business decisions by “utilizing a data-driven feedback loop,” according to its mission statement.
While part of the team has since split off to focus on Blackbox, an educational program and startup accelerator, Herrmann and Marmer have continued toiling away at Startup Genome, collecting data from the some-16K startups that signed up for Startup Compass — and beyond. Today, a year removed from launch, the entrepreneurs believe that Startup Genome is finally crossing the threshold, reaching a critical mass of data on the world’s top entrepreneurial ecosystems.
With its data set growing, Startup Genome is beginning to launch a thorough, comparative analysis on those ecosystems in an effort to give startups a more granular glimpse into how (and at what rate) the world’s top entrepreneurial hubs are evolving — and which are leading the way.
Over the last five years, web (and the diversity of digital technologies that accompany it) have matured, which has, among other things, succeeded in bringing down the cost (and amount of capital needed) to launch a viable business — or at least a MVP. Concurrently, this has caused an explosion in the number of software companies being created (an element inherent to Marc Andreessen’s argument that software is eating the world) and, as a result, new ecosystems are popping up all over the globe to help grow these companies, help jumpstart those that follow in their footsteps, as well as light a fire under regional economic growth.
In terms of the overall health of the global economy, these fertile startup ecosystems are essential, as they have the potential to become both regional and global engines of job creation. In the U.S., for example, companies less than five years old created 44 million jobs over the last three decades and accounted for all net new jobs created in the U.S. over that period, according to the White House. This is the undercurrent that led to the uncharacteristic bipartisan support for the JOBS Act.
As such, healthy startup ecosystems, Herrmann agrees, can be a democratizing force. Typically, startups plant themselves close to extant networks of support, be it financial capital, human capital, or technologies. Startups go where the money is — and historically, that’s been Silicon Valley, with Boston and New York City being mentioned as addenda. Yet, over the last few years, things have been changing, and today that’s more apparent than ever, as viable companies are popping up across the globe.
Entrepreneur Magazine claims that this was the overarching theme of SXSW this year — that entrepreneurs no longer have to locate themselves in Silicon Valley to build successful tech or consumer web businesses. And given this growing abundance of choice, it’s become increasingly important for entrepreneurs to be able to answer questions like, “What are the advantages and disadvantages of particular ecosystems?” and “What are the characteristics that differentiate successful entrepreneurs across those ecosystems?”
Herrmann and Marmer believe that there has been a wealth of qualitative reporting about the benefits of each ecosystem, but that, to date, there’s been very little data to support our collective intuitions.
In compiling its data, the team has begun to uncover valuable insights into the strengths and weaknesses of the world’s startup ecosystems, and as the study progresses, the founders say they hope it will continue to “yield insights for entrepreneurs deciding where to start their company, investors deciding where to allocate their capital, large companies looking for acquisition targets, and policymakers who want to make their entrepreneurship ecosystems flourish.”
Tapping into the collective idealism of all those invested in the success of these startup ecosystems, we know that the world is desperately in need of an economic revival, and thus we all hope that unleashing an “entrepreneurial renaissance” as Herrmann puts it, will help drive that evolution forward.
Attempting to play its part, Startup Genome is today sharing some of its findings on the top startup ecosystems, providing a data-based look into how they compare — starting with what it’s found to be the three most active startup hubs: Silicon Valley, New York City, and London.
Below, you’ll find some 20-odd insights into those comparisons, intended to get entrepreneurs thinking about what’s working, and what isn’t. Readers can find more on how the report defines its terms in our coverage here or on the project’s blog here. There’s also more on how it defines “Types” here.
Startup Genome is also offering a new ranking for the world’s top 25 startup ecosystems, ordered by their average throughput:
Startup Genome has already brought on the support of a number of entrepreneurial enterprises across the world, including Endeavor, Mamstartup in Warsaw, Startupi in Sao Paulo, sgentrepreneur in Singapore, Metavallon and Loft2work in Greece, and Startup America in other cities around the US.
The founders are looking to find local support for each of these ecosystems, and readers interested in learning more or that have any suggestions, can contact them at email@example.com. And to sign up for the next full, in-depth report, navigate over here.
This Startup Genome continues to be an awesome “Startups helping startups” enterprise, and the more data the group collects, the more founders and entrepreneurs across the globe stand to benefit. So, if you run a tech company, check out Startup Compass, as it will not only help you gain insights into your own business, but also contribute to the project’s data set and to amassing more quality comparative data on the world’s startup hubs.
What do you think?
Startup Compass is building software to help businesses make better decisions.
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Silicon Valley global seed-stage accelerator focused on helping non-US startups. Custom tailored acceleration programs provide intensive individual support to highly selected startups from all around the globe. No batches, no application deadlines, just continous support. Blackbox was founded in 2010 by Fadi Bishara. Fadi has in-depth knowledge and experience related to building successful startups in Silicon Valley and elsewhere in the world. For over 17 years, he has been successfully matching human capital and venture capital needs around the globe, guiding...