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The Startup Genome report: London has trendsetters, Paris has talent and Berlin has hype (and the fewest female entrepreneurs)… Written by HEUREKA editorial on 20. November 2012

Startup Genome List

A new report by research company Startup Genome on global startup hubs has just been released and the take-home lesson for Europe would seem to be that it must do better, with only three cities out of 20 making the list – London, Paris and Berlin.

Berlin climbed up a paltry two places in this year’s Startup Genome’s Startup Ecosystem Report. Coming in at #15 marks a slight improvement on last year’s #17 slot, but the German capital still lags behind power-players such as Silicon Valley and Tel Aviv, which take first and second place respectively.

It’s also bested by other, less obvious tech hubs such as Sao Paulo, Sydney and Paris. The report goes on to place Berlin at the “Hype” evolutionary stage of its growth process, lagging behind its European counterparts in London and Paris (at #7 and #11 respectively).

How does your city compare on the Startup Genome scale?

Startup Genome List

The detailed report called The Startup Revolution: The Global Rise of Startup Ecosystems and How They Compare uses data collected from more than 50,000 startups using its proprietary benchmarking tool.

Ecosystems are measured based on criteria including Funding, Talent, Mindset and Startup Output and culminates with a list of the world’s Top 20 startup ecosystems. The tech hubs are then also judged on at which stage in their “evolutionary phase” they are in, identified as:

#1 Seed, #2 Hype, #3 Independence, #4 Integration, #5 Expansion, #6 Contraction

Berlin is ranked at #2, the early Hype stage. Again Paris and London rank higher on this scale, with more mature markets of Independence for the French capital, while the British city scores all-out Integration.

Berlin vs London vs Paris vs Silicon Valley

Here’s how European entrepreneurs stack up against each other – and against the startup stalwarts in Silicon Valley:


Startup Genome facts and findings

Also revealed are some interesting findings about the differences in the characters of each ecosystem. For instance, did you know that:

• Berlin and Sao Paolo have the fewest number of founders that have previously lived in Silicon Valley (four per cent and seven per cent respectively)? In contrast, Singapore and Waterloo have the most number of founders that have lived in the Valley before with 33 per cent and 35 per cent respectively.

More after the map…

Startup map

• Of the European cities ranked, Berlin had the lowest percentage of female entrepreneurs with a mere three per cent compared to seven per cent in Paris and nine per cent in London. In contrast, Santiago, New York City and Toronto had the highest percentage of female entrepreneur with 20 per cent, 18 per cent and 18 per cent respectively. Naturally, this raises the question: What are these cities doing differently?

• Sydney, Sao Paulo and Moscow are the Startup Ecosystems that are the most differentiated from Silicon Valley in terms of the types of startups being built.

• More than 80 per cent of entrepreneurs in Tel Aviv still use the historically popular programming languages PHP, C++, Java and .Net, despite a number of those languages rapidly falling out of fashion in trendsetting Silicon Valley in favour of Ruby, Python and Javascript.

“Our hope is that our first-of-a-kind, data-driven, comparative study on Startup Ecosystems will help facilitate a constructive public dialogue about what we as a society need to do to create a thriving 21st-century global economy,” said Bjoern Lasse Hermann, CEO of the Startup Genome.

The full Startup Genome report can be downloaded from here.

What do you think?

After the buzz generated from Berlin’s ranking of “a lame #17” on last year’s list, it will be interesting to see how the startup community reacts to its (slightly) improved position of #15 this year.

What do you think? Do you think the ranking is a fair evaluation of the Berlin startup ecosystem? How do you think Berlin can improve?

For related articles, check out:

Berlin reacts (or, er, doesn’t) to Startup Genome’s #17 Ranking
Did Startup Genome kill the Berlin hype?
Why startups fail – too big, too early and other founder failures