Berlin ranked seventh in the Startup Genome’s 2017 Global Startup Ecosystem report, up two spots from ninth place in 2016.
The higher score is due largely to the city’s ability to “beckon international founders and talent,” thanks to affordable living options, lenient visa regulations and a unique culture.
But there is still a lot of work to be done before Berlin moves higher up on the list. Two big IPOs in 2014 (from Zalando and Rocket Internet), which were valued at close to $14 million, had an “outsized effect,” Startup Genome writes in the report.
This means the city will need to prove itself and “its upward trend” with fresh IPOs, and confirm its place as the second-best European startup ecosystem.
The top ten ecosystems: Silicon Valley, New York City, London, Beijing, Boston, Tel Aviv, Berlin, Shanghai, Los Angeles, Seattle.
There are an estimated 1,800 – 2,400 active tech startups in Berlin.
Areas of significant growth in Berlin are FinTech, digital health, artificial intelligence, mobility, food technology and cyber-security.
Rocket Internet is a driving force of Berlin’s ecosystem growth.
They raised $1 billion in funds in 2016.
Berlin attracts the largest percentage of startups from outside the country, compared to other European ecosystems.
Berlin attracts 11 per cent of startups from outside the country. The European average is 2 per cent.
Forty-three per cent of founders in Berlin are immigrants.
This is the second highest globally, trailing behind Silicon Valley. The global average is 19 per cent.
The Berlin ecosystem is valued at $31 billion.
The global average is $4.1 billion.
Software engineers in Berlin have an average salary of $55,000.
The global average is $49,000.
Berlin has a high visa success rate: 77 per cent.
The global average is 41 per cent.
The report is produced in partnership with Crunchbase, GEN and Orb intelligence.