The recent release of rankings by Global Startup Ecosystem Ranking by San Francisco based company Compass illustrates the prolific rise of Bangalore as a startup ecosystem in the world. Having risen 4 places Bangalore, which is at Rank 15, is the only Asian city apart from Singapore to figure in the top 20 hottest startup ecosystems in the world. Undoubtedly, Bangalore is the startup capital of India.
As per reports Bangalore has 3100 to 4900 active startups and has it has received a whooping sum of $2.25 billion of Venture capital funds in 2014, thereby outranking every metropolis in India. The last time the rankings were declared in 2012, Bangalore was ranked 19th in the world. Hence, in the last 3 years, the city has climbed 4 spots, which is an applaudable achievement in itself.
Notably the same ranking report in relation to Bangalore states that “the ecosystem, which has historically been known as “the world’s back office”, has transformed itself into a high octane environment that offers early stage startups the opportunity to turn into billion dollar companies.” Further the report also has special mention of the likes of Flipkart and InMobi, wherein they have been hailed as the leaders of $1 billion valuation ‘unicorn club’, which has thereby helped to inspire other startups to think beyond their present status.
Noteworthy, is the fact that the report also states that the median age of startup founders is 28.5 years, which is 12% less than the regional average and 21% below Silicon Valley’s average. The report also highlights the city’s inability to locate and nurture talents, as Human Resource failure is prominently highlighted in the report. Lastly, the report also observes that the quality of local talent available is not yet at par with other global ecosystems. From a Global standpoint Silicon Valley is the numero uno place for startup ecosystem in the world in VC funds inflow, talent acquisition, startup experience and more.
Besides Bangalore, Singapore is the only Asian city in the list at 10th position. The numbers state that there has been a prolific rise in the number of startups from 3100 in 2014 to a projection of more than 11,500 by 2020. The ecosystems with the most growth in funding in the last three years were Berlin (12x), Bangalore (4x), and Boston (3.7x). But of all the ecosystems, Bangalore had the highest rise which is a clear indicator of future growth potential.