The latest Global Startup Ecosystem Report (GSER), by Startup Genome and Global Entrepreneurship Network, released in April 2018 is a rigorous analysis that attempts to research and quantify the global startup ecosystem performance and highlight strategic actions that strengthen the ecosystem vibrancy. The GSER is based on the voices of over 10,000 startup founders across the world and assesses 43 ecosystems in 23 countries on a dozen Success Factors. The 2018 Report also provides, advanced analysis of 15 startup sub-sectors in which technology-based startups are creating economic value.
The global Startup ecosystem performance.
The list of Success Factors studied in the report includes:
- Founder – Mindset and Ambition, DNA, Startup Strategy and Know-How.
- Talent – Access, Quality and Cost.
- Funding – Early stage funding per startup, Early Stage Capital Invested, Experienced VC Firms.
- Startup Experience – Giving equity to advisors and employees (which is linked with success), Scaling experience through exits, Experience with growth in a fast-growing startup or unicorn.
- Global Connectedness
- Local Connectedness
- Global Market Reach
- Economic Impact
According to the report the Success Factor of Talent is first of all, one of the most difficult to quantify. Engineering quality matters, but the best local engineers are mostly out of reach for early-stage startups and therefore what matters most to early-stage startups is engineers with prior experience in a startup, and secondarily, scaleup experience along with attraction of foreign engineers. According to the report the Talent Success Factor closely correlates with their Ecosystem Performance Model (correlation of 54%). It also correlates with Startup Output.
Looking into the Talent Sub-factors, with regard to Access the study aims to capture the ability of early-stage startups to hire and attract engineers and growth employees, particularly those with prior startup experience and recognizes that access varies substantially by ecosystem stage and the quality of local educational institutions. The Sub-Factor Quality is measured by a mix of raw talent and scaleup experience in the community, and the Sub-Factor of Cost is requisite compensation for hiring software engineers.
The twelve key startup Sub-Sectors.
In addition and for the first time, Startup Genome and the Global Entrepreneurship Network (GEN) also published the lifecycle of twelve key Startup Sub-Sectors based on data covering over 1 million companies, nearly 100 ecosystems, and 300 partners. The diagram shows the outcome of the research, including currently rising and declining technology sectors.
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In conclusion the report offers key insights for startup ecosystem builders and Leaders can use the research model in order to identify strategic actions with maximum impact.
You can view and download the Global Startup Ecosystem Report 2018, Succeeding in the new Era of Technology here.