Bengaluru startup ecosystem ranked 20th on global list | Bengaluru News – Times of India

BENGALURU: Bengaluru has clinched the 20th spot, moving up two places, in Startup Genome’s The Global Startup Ecosystems Report (GSER) 2023.
While Silicon Valley remained on top, New York City and London were tied at No 2. With this, the top three ecosystems have all held on to their positions from 2020.
Among the emerging ecosystems, Pune has moved into the 31-40 range in 2023, from 51–60 in 2022.
GSER is a comprehensive analysis of startup ecosystems around the world. The report, now in its 11th year, offers a detailed look into the world’s top startup ecosystems, while tracking emerging trends and challenges faced by entrepreneurs.
Several Indian cities have moved up several notches in the rankings, thanks to India’s growing digital public infrastructure that has proved to be a game changer.
To create the 2023 rankings, Startup Genome measured six factors in each ecosystem — performance, funding, market reach, connectedness, talent and experience and knowledge. The ranking identifies the top-30 global ecosystems and ten runners-up. These ecosystems feature more than $50 million in funding activity.
Boston and Beijing have both slipped out of the top 5 to 6th and 7th spots, respectively, paving the way for Los Angeles to rise to 4 and Tel Aviv to 5 — both gaining two spots.
Singapore entered the top-10 for the first time, moving up ten places to 8th from 18th in GSER 2022 edition, marking the biggest improvement in the rankings.
Miami also made impressive progress, making it to the 23rd spot – rising ten positions from last year.
Meanwhile, all major Chinese ecosystems dropped in the overall rankings: Shenzhen moved down 12 places, Beijing two and Shanghai one, standing at 35th, seventh and ninth spots, respectively.
“The Covid-led growth in tech impacted countries to very different degrees and this is reflected in movements in the global rankings,” wrote JF Gauthier, founder and CEO, Startup Genome, in the 2023 edition report.
“India is up due to its world-leading growth in 2021 and 2022 and this trajectory may well continue. China, however, grew at a significantly slower pace,” Gauthier added.
Gauthier further explained that Silicon Valley’s venture capitalists (VC) and their limited partners (LP) have all but stopped investing. “The dramatic shutdown and nail-biting rescue of Silicon Valley Bank in March only underlined the level of the turmoil in the sector,” he said.
India recently surpassed China as the world’s most populous country and has created the world’s largest talent pool. Additionally, the Indian government has massively invested in digital public infrastructure, collectively known as India Stack, which included APB (Aadhaar Payment Bridge), AEPS (Aadhaar Enabled Payment System), eSign, Digilocker, UPI and DEPA (decentralized consented data sharing protocol).
A slew of measures in the budget is expected to catalyse India’s startup ecosystem further by simplifying processes and improving the ease-of-doing-business index in the country’s thriving digital economy.
The budget has extended tax holiday for startups from seven to ten years, allowing them to carry forward losses on change of shareholding. More than 39,000 compliances were reduced and more than 3,400 legal provisions decriminalized to enhance ease of doing business.
India has also accelerated efforts to improve ease of doing business through simplification of the KYC protocol and introduction of a unified filing process.
The top-100 Emerging Ecosystems are collectively worth more than $1.5 trillion in ecosystem value. Europe is the most represented region in the Emerging Ecosystems ranking and has expanded its share from 37% to 41% since the GSER 2022. The methodology for this ranking showcases the ecosystems displaying high potential to be top global performers in the coming years.