The 2024 Global Startup Ecosystem Report (GSER) was launched today at London Tech Week by Startup Genome and the Global Entrepreneurship Network in partnership with the Founders Forum, Informa Tech, and London & Partners.

The report, which provides rankings to identify which ecosystems are leading in innovation and offers in-depth insights into global startup trends, revealed significant progress made by startup ecosystems in Southeast Asia (SEA) and across five continents.

Singapore has improved its ranking from the 2023 report, moving up to the #7 Global Startup Ecosystem. From July 1, 2021, to December 31, 2023, Singapore’s startup ecosystem generated US$144 billion in Ecosystem Value, a metric that captures the economic impact through the value of exits and startup valuations.

Another SEA startup ecosystem, Jakarta, also made “notable advancements” as it entered the Top 10 emerging ecosystems at #6.

Close to SEA, India boasts two ecosystems in the Top 40, with Delhi at #24 and Mumbai at #37. Bengaluru-Karnataka is ranked as the #21 Global Startup Ecosystem, tied with Sydney, having created $158 billion in Ecosystem Value during the same period as Singapore.

“Entrepreneurs are naturally attracted to the most important challenges of the day and seek to apply the best ideas and technologies for solutions. Our progress on these issues in the next decade will determine the success of the next 100 years and beyond. The prize is finding solutions to global needs faster,” shared Jonathan Ortmans, President of the Global Entrepreneurship Network, in a press statement.

Also Read: Startup Genome: Singapore remains top startup ecosystem for clean tech, blue economy

Funding slowdown

The 2024 GSER report analysed data from over 4.5 million companies across more than 300 startup ecosystems. In addition to ranking the top ecosystems, it highlighted startup funding in the same year and what it means for these ecosystems.

According to the report, Series A funding in 2023 saw a significant decline, dropping by 46 per cent from the previous year, and the value of large exits (US$50 million and above) fell by 47 per cent. However, Q1 2024 shows promising signs of recovery, with projected higher Series A funding amounts and deal counts compared to Q4 2023. This could indicate a modest rebound in early-stage startup funding after a challenging year.

The share of Series A funding for the Top 40 ranked ecosystems in the GSER 2024 decreased to 65 per cent in 2023, down from 79 per cent in 2019. In contrast, the Top 100 Emerging Ecosystems saw their share increase to 19 per cent from 13 per cent over the same period.

The number of new unicorns also dropped significantly in 2023, down 58 per cent from 2022 and 87 per cent from the 2021 peak. Despite the decline, China increased its global share of new unicorns from six per cent in 2022 to 11 per cent in 2023, while Silicon Valley remained the leader with 15 new unicorns, albeit an 80 per cent decrease from 2022.

Tashkent, Lyon, and Rhineland welcomed their first unicorns in 2023.

In terms of verticals, Generative AI (GenAI) and Deep Tech subsectors dominated the new unicorn landscape in 2023, surpassing their 2021 rates. GenAI saw a funding surge, accounting for nearly 20 per cent of all VC funding in 2023, with US-based startups at the forefront.

Also Read: Startup Genome reveals how local and global connections drive startup scalability

GenAI VC funding tripled, and deal counts nearly doubled from 2022 to 2023.

Late-stage clean tech startups experienced a 2.5x increase in funding in H2 2023 compared to H1 2020, with the UK, France, and Germany surpassing the US and China in early-stage clean tech funding, achieving nearly a 50 per cent increase from 2021.

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