Global Startup Ecosystem Report 2023

Global Startup Ecosystem Report 2023

News: The Global Startup Ecosystem Report 2023 (GSER 2023) is a comprehensive analysis of the current state of startup ecosystems worldwide.

Who has published the report?
• The report is produced by Startup Genome, a global research and policy advisory organization that helps governments and innovation agencies accelerate the growth of their startup ecosystems.
• The report is also supported by the Global Entrepreneurship Network (GEN), a platform that connects entrepreneurs, investors, policymakers and researchers across 180 countries.

Key Findings:
• A recession is a good time to invest in startups - high interest rates can benefit startups, concentrating capital and talent into ventures that create value.
• Reflecting AI’s increasing use and intersection with other sub-sectors, AI & Big Data was the sub-sector with the highest count of total VC deals in 2022, making up 28% of the global share.
• The top three ecosystems have maintained their ranking positions from 2020, with Silicon Valley at the top, followed by New York City and London tied at #2. The report also highlights the rise of emerging ecosystems such as Bengaluru-Karnataka (#20).

India specific Findings:
• Indian ecosystems continue to rise, with Mumbai leading the way by moving up five places to tied #31. Bengaluru-Karnataka and Delhi both moved up two places, to #20 and #24 respectively.
• India has emerged as one of the fastest growing startup ecosystems in the world, with over 50,000 startups and 51 unicorns as of December 2022. The country added 18 unicorns in 2022 alone, despite the challenges posed by the Covid-19 pandemic.
• India has also become a hub for deep tech startups, especially in the fields of AI, blockchain, robotics and IoT. The country has over 2,500 deep tech startups, accounting for 14% of the total startups.
• India has also benefited from the supportive policies and initiatives of the government, such as Startup India, Digital India, Make in India and Atmanirbhar Bharat. These have created a conducive environment for startups to thrive and scale up. The government has also provided tax incentives, regulatory relaxations, funding schemes and infrastructure support to the startups.

Some of the challenges faced by Indian startups are:
• Lack of funding - Indian startups often face difficulties in raising capital, especially in the early stages. Venture capital firms usually target established startups, making it hard for new and innovative companies to get funding.
• Lack of talent - Indian startups also struggle to find and retain skilled workers, such as engineers, developers, designers and managers. The talent pool is limited and there is a high demand for these professionals from both domestic and foreign companies
• Bureaucratic hurdles - Indian startups have to deal with complex and cumbersome regulations, such as tax laws, labour laws, intellectual property rights, licensing and permits. These create barriers to entry and increase the cost and time of doing businesses.
• Competition from big players - Indian startups face stiff competition from both local and global players, who have more resources, experience and market share. These players can offer better products, services and prices to the customers, making it hard for startups to differentiate themselves and gain traction.
• Scaling up challenges - Indian startups also face challenges in scaling up their operations, such as expanding their customer base, entering new markets, developing new products and services, and maintaining quality and efficiency.
• Customer preferences - They also have to cope with the changing customer preferences, technological disruptions and regulatory changes.