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Startup Ecosystems Report 2019 - Labora Newsletter #8

Startup Ecosystems Report 2019 - Labora Newsletter #8
By Alberto Lusoli • Issue #8 • View online
Hello and welcome everyone to the eight issue of the Labora newsletter. If you are new here, welcome! If you want to help this newsletter to grow, feel free to forward this email to friends and colleagues.
Last week Startup Genome released their annual “Global Startup Ecosystem Report” (link to download at the bottom). The publication tracks the performance of the 30 most competitive startup ecosystems in the world.
Here is my take on it.
According to the report, 2018 was a record year. In 2018 we witnessed a decade-high $220 billion in total VC investments. The fastest growing sub sectors, in terms of early-stage funding deals (Seed + Series A), are:
  1. Advanced Manufacturing & Robotics (107.9%)
  2. Blockchain (101.5%)
  3. Agtech & New Food (88.8%)
  4. Artificial Intelligence, Big Data & Analytics (64.5%)
Interestingly, the 2019 report emphasizes the growth of so-called “deep tech” startups. These are start-ups developing technologies based on tangible engineering innovation or scientific advances and discoveries (source). Now, the fact that Hello Tomorrow, a non-profit organization “on a mission to unlock the potential of deep technologies to solve the world’s toughest challenges” was the main partner of the 2019 report might explain why there is so much emphasis on this sub sector. Although the 2019 report describes “Deep tech” as a sector on a steady growth trajectory since 2011, the term was absent in last year report.

This makes me think about the influence that partners can have on the methodology used to elaborate these statistics.
While looking at the most competitive cities, Silicon Valley is still the top ecosystem, followed by New York. London and Beijing share the third spot. Bad news for my fellow Vancouverites, as the city has lost 9 spots and now ranks 24th. Looking at continental Europe, it is worth to note Paris surpassing Berlin, which for years has been described as the best startup hub of Europe. The news can only please Emmanuel Macron am Xavier Niel, who have been working on transforming France into the hotbed for European disruptors, for instance through the creation of the largest Startup incubator in the world: Paris’ Station F.
As you can guess looking at the chart, most of the wealth is generated, and stays within, the most competitive ecosystems. As the report acknowledges, this can only widen the gap between top hubs and peripheral cities. And although there was an actual reduction of wealth-concentration from the 2011 peak, 68% of the value created by startups is still concentrated in the top 10 global hubs.
That’s all for this week. If you want to share your thoughts abut the report, you can download it at the link below. For comments or questions, feel free to send me a tweet or contact me using the form at this page.
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Alberto Lusoli

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Alberto Lusoli, Vancouver, CA. Canada