Why Silicon Valley Continues to Rock!
New research into the world’s top startup hubs shows once again why Silicon Valley remains the global hub of innovation and entrepreneurship.
Startups here raise more money, have a bigger ecosystem to tap into, are more successful, create more jobs and are more likely to be designed to change the world than simply make money.
So says the Startup Genome Project, a research effort begun last year that aims to help make startups more successful.
The results of the comparison of the world’s top startup locations was published Wednesday on TechCrunch.
It’s interesting to note because there has been a groundswell of stories recently talking about whether startups really need to be located in Silicon Valley.
While the advantages here are shrinking a bit, they are still formidable.
— The support system for startups in Silicon Valley is three times bigger than New York City, 4.5 times bigger than London, 12.5 times bigger than Berlin, and 38 times bigger than Boulder.
— That raises the likelihood of success. Silicon Valley startups succeed (defined as reaching scale stage) 22 percent more than they do in New York City and 54 percent more than in London.
— There is more money raised by startups here, 2 to 3 times more than anywhere else.
— Startups create more jobs here: 11 more than in New York and 38 percent more than in London.
— The reason for starting up a company in Silicon Valley is 30 percent more likely than anywhere else to be trying to change the world. New Yorkers are 50 percent more likely to be primarily trying to make a good living and Londoners are twice as likely to be looking to flip their business for a good profit.
— Don’t bother coming here is you aren’t ready to work hard. Silicon Valley startup crews put in 35 percent more hours than those in New York. Average work day here is 9.5 hours, versus 8 hours in London and 7 in NYC.
— Valley startups are ready to turn on a dime. So-called “pivots” where the original business model is tossed for a new one happens 45 percent more on average in Silicon Valley than in New York City and 33 percent more than in London.
There are more conclusions that can be found at the Startup Genome blog, which you find by clicking here.
But in the end, it would appear that Silicon Valley is unquestionably the place to be if you have an idea for a startup that you think may change the world. But be ready to work hard and get ready to adapt quickly.
The 10 most active startup ecosystems in the world, according to the research, are:
1. Silicon Valley (actually more like the Bay Area since they throw in San Francisco and Oakland, along with the San Jose and Palo Alto metro areas).
2. New York City.
5. Tel Aviv.
6. Los Angeles.
8. Sao Paolo.
Other U.S. cities that made the list include Seattle at No. 13, Chicago at No. 15, Boston at 18, Austin at 19 and Washington, D.C. at No. 24.
Written by Cromwell Schubarth. Contact him at email@example.com or 408.299.1823.