Did you know that 90 percent of all tech startups fail? If you’re an aspiring tech startup founder, the odds are certainly stacked against you.
If you’re looking to increase your odds of success, consider joining a leading tech startup ecosystem. From San Francisco and London to Tel Aviv and Bangalore, these tech hubs are producing industry-leading tech startups and scale-ups at a blistering speed. Is your tech startup next?
“While Silicon Valley may stand undefeated as the most prominent name for tech entrepreneurs and startup visionaries, other regions all over the world are worthy competitors,” says Lyanne Alfaro, contributor at Business Insider.
The 7 Best Startup Ecosystems to Build a Tech Company
Sure, there are plenty of tech-oriented cities designed to help your startup scale. However, in your search for the perfect tech startup ecosystem, it’s important to evaluate the unique needs of your business. Not all tech startup ecosystems are created equal.
The following seven cities offer world-class resources, events, and capital to help tech startups unlock meaningful and rapid growth. Join one of the following tech startup capitals and take your tech startup to new heights.
Toronto was recently named one of the world’s most high-tech cities. The city produces more than $52 billion in economic output per year and is home to 30 percent of Canada’s information technology firms. Moreover, according to KPMG’s Global Innovation Report, Toronto is set up to be one of the world’s leading technology innovation hubs for many years to come.
“Toronto has been rapidly grabbing the world’s attention as a destination for financial and intellectual capital in technology innovation,” says Anuj Madan, a national industry leader for technology, media, and telecommunications at KPMG in Canada.
Toronto has experienced a rapid influx in tech-oriented businesses thanks, in part, to an abundance of trained talent. Approximately 150,000 students live within 90 minutes of the city center. Facebook and Google have begun to source recruits from this international pool of top tech talent.
“The pool of talent we have here, I am told by people outside of Toronto and outside of Ontario, is as rich as any in the world,” said Toronto Mayor John Tory.
- Population: 2.97 million
- Median Household Income: $65,829
- Monthly Rent: $1,776 (1-bedroom)
- Tech Niche: FinTech, BioTech
- Investors: SurePath Capital Partners, CMERS Ventures, Kiass Capital, Three Angels Capital
- Accelerators: TheNext36, INcubes, Creative Destruction, The DMZ, Highline
- Universities: York University, Ryerson University, University of Toronto, Trent University
- Tech Startups: TopHat, Ritual, Rumie, StackAdapt
- Coworking Spaces: East Room, Workplace One, Project Spaces, Shecosystem
- Mentor Works’ Funding Insider Membership
- Futurpreneur Canada’s Startup Resources, Mentoring, and Financing
- Research Innovations Centres and Ontario Network of Entrepreneurs’ Programs
- Employment Ontario’s Employment Services Resources
Tel Aviv is Israel’s business capital and one of the most active startup ecosystems in the world. The city currently supports more than 70 multinational tech corporate giants including Google, Apple, Facebook, and Microsoft. Moreover, Tel Aviv is a hotbed for cybersecurity and mobility technology. Recently, Intel bought Mobileye, an autonomous driving technology company, for a whopping $15.3 billion.
“This acquisition will combine the best-in-class technologies from both companies, spanning connectivity, computer vision, data center, sensor fusion, high-performance computing, localization and mapping, machine learning, and artificial intelligence,” reports Portia Crowe, contributor at Business Insider.
Tel Aviv’s startup community is close-knit. Startup founders can find a Meetup group for almost every vertical and topic. These groups allow members to share information and learn from one another — it’s incredibly easy to connect with like-minded startup founders. However, before relocating to Tel Aviv, consider the city’s high cost of living and poor public transportation network. Additionally, cultural differences can make for tense business conversations.
- Population: 3.77 million
- Median Household Income: $48,132
- Monthly Rent: $2,228 (1-bedroom)
- Tech Niche: Cybersecurity, Mobility
- Investors: 83North, Pontifax Funds, Greenfield Cities Holdings, Pitango Venture Capital
- Accelerators: The Junction, SigmaLabs Accelerator, 8200 EISP, Brainnovations
- Universities: Tel Aviv University, Afeka College of Engineering, Reidman College
- Tech Startups: Airobotics, Zebra Medical Vision, Boom25, Deep Instinct, Monday.com
- Coworking Spaces: Mindspace, Urban Place, CityHUB, Ayeka, SOSA, Misanthrope
- Israel Tech Challenge
- Microsoft’s Tech Summit
- TAMID Groups’ Education, Consulting, and Investment Program
Bangalore is frequently referred to as India’s Silicon Valley. The city is fast becoming the hub of high-value, successful startups. Members of this tech startup ecosystem are highly skilled and well-trained. Currently, 35 percent of the country’s information technology professionals reside in Bangalore. Moreover, according to StartupBlink, Bangalore ranked 1st in India and 21st globally among cities measured by quantity and quality of startups and business environment.
“With several startup offices, venture funds, angel investors, and coworking spaces, it is easy for Bangalore startups to get feedback from their peers, hire talent, and find mentors in other successful companies,” reports StartupBlink.
- Population: 12.34 million
- Median Household Income: $14,900
- Monthly Rent: $221.87 (1-bedroom)
- Tech Niche: Data Innovation and Infrastructure
- Investors: Helion Venture Partners, Accel Partners, Blume Ventures, Sequoia Capital India
- Accelerators: TLabs, Kyron Global Accelerator, Ansrsource Accelerator Program
- Universities: Bangalore University, International Institute of Information Technology
- Tech Startups: Team Indus, Ather Energy, Explara, Pocket Pill, Fabulyst, Nexhop
- Coworking Spaces: Bangalore Coworking Hub, Cowork Cafe, Startup Warehouse
- BHive’s Startup and Entrepreneurship Community
- Lean Startup Circle Bangalore
- Happy Entrepreneurs Network
- Great Indian Developer Summit
London produces more tech startups than any other city in Europe. Estimates suggest that some 60 companies are launched each hour in London. Moreover, despite the United Kingdom's decision to leave the European Union, analysts predict that the city will continue to flourish. Some experts have even gone so far as to suggest that London is poised to become the next Silicon Valley.
"We're actually building something much bigger. I'm talking about fashion, media, finance, design, marketing, and property. We are the world leader in all of these spaces and that's what makes London unique," says Alex Wood, editor-in-chief at The Memo.
The city offers enticing tax breaks; making it easier to start a company and procure investment. London's technology sector raised £2.45 billion in funding in 2017. Some of the biggest deals last year included a £391 million Series B investment into Improbable, Deliveroo (£364 million), and Truphone (£255 million).
RocketSpace is one of the London's premier tech communities. With access to growth-oriented amenities, value-driven programming, and corporate partnership opportunities, RocketSpace supports high-growth tech startups and scale-ups. In fact, RocketSpace has supported 20 startup unicorns including Uber, Spotify, and Zappos.
- Population: 8.67 million
- Median Household Income: £39,100
- Monthly Rent: £2,019 (1-bedroom)
- Tech Niche: FinTech
- Investors: IndexVentures, Balderton Capital, Notion Capital
- Accelerators: Seedcamp, Techstars, Startupbootcamp, RocketSpace
- Universities: Imperial College London, University College London, Kings College London
- Tech Startups: Deliveroo, TransferWise, Shazam
- Coworking Spaces: Huckletree, SPACES, The Clubhouse, Soho Works, RocketSpace
New York City
New York City was ranked as 2nd leading tech ecosystem in the 2017 Global Startup Ecosystem Report. The city is flush with venture capital funding; making it easy for tech startups to acquire capital and scale fast. On average, startups raise $568,000 in early-stage investments. Moreover, New York City is the 2nd largest startup ecosystem in the world, with 6,300 to 7,800 active startups. Additionally, the startup ecosystem is ranked as the 3rd most valuable, with an estimated worth of $71 billion.
In a recent interview with The Verge, Shan-Lyn Ma, CEO at Zola said that she chose to build her tech company in New York City because of its talented workforce. "New York is not at a point where we've had multiple rounds of successful startups exit," said Ma. "We've built up a critical mass of tech startup talent across engineering, product design, et cetera."
The city's supportive tech community provides startup founders with the directional insight needed to hurdle roadblocks and scale at a higher velocity.
"There's now a great ecosystem of founders and other entrepreneurs who really are supportive and want to see each other succeed," said Ma. "There are people that you'll find at the same stage as you, as well as a few stages ahead who have been operating longer, so that you will be able to get advice from people who are really wanting to help because they're really wanting to see this ecosystem win and thrive."
- Population: 8.53 million
- Median Household Income: $50,711
- Monthly Rent: $2,700 (1-bedroom)
- Tech Niche: FinTech, Fashion
- Investors: RRE Ventures, Great Oaks VC, Union Square Ventures
- Accelerators: Grand Central Tech, Betaworks, Entrepreneurs Roundtable Accelerator
- Universities: Fordham University, City University of New York, The New School, Columbia University
- Tech Startups: Brooklinen, Elysium Health, Bowery, Citizen, Zola, Dandelion
- Coworking Spaces: Cubico, The Yard, Ignitia Office, The Farm Soho, Beewake
- The Entrepreneurs' Organization
- NYC Small Business Resource Center
- The Grassroots Fundraising Journal
- The Foundation Center
Silicon Valley captures a whopping 40 percent of venture capital funding in the United States. The entrepreneurial community favors innovation, collaboration, and risk-taking. Currently, Silicon Valley supports more than 2,000 tech companies. Additionally, the Bay Area is home to the world's largest tech giants including Apple, Amazon, Google, and Facebook. With direct access to industry-leading tech companies, startup founders can access valuable insights related to financing, hiring, and more.
According to Kraig Swensrud, Founder and CEO at GetFeedback:
"Having started two businesses in Silicon Valley, I can't imagine setting up shop elsewhere. My latest venture, GetFeedback.com, is based in downtown San Francisco. Being steps away from hundreds of other tech companies is invaluable; I am able to connect with some of the tech's brightest minds on a regular basis to share best practices, ideas, and war stories."
- Population: 3 million
- Median Household Income: $94,572
- Monthly Rent: $2,361 (1-bedroom)
- Tech Niche: Software, EdTech, FinTech
- Investors: Accel Partners, Andressen Horowitz, Sequoia Capital
- Accelerators: Y Combinator, 500 Startups, RocketSpace
- Universities: Berkeley University, Stanford University
- Tech Startups: Motiv, Nurx, Virta Health, Brandless, Trove, Spoke, Holberton School, Crew
- Coworking Spaces: HanaHaus, Pivotal Labs, Bespoke, Impact Hub, Mothership, RocketSpace
Melbourne ranks as a leader in healthcare, education, stability, culture, environment, and infrastructure. The city scored an impressive 97.5 out of 100 rating on the Economist Intelligence Unit's liveability survey. Moreover, the University of Melbourne's startup accelerator, the Melbourne Accelerator Program, has been operating since 2012 and was recently rated as the top university accelerator program in Australia.
"Today, Melbourne’s ecosystem is flourishing and a swath of international tech companies like Zendesk, Slack, Square, Hired, Stripe and GoPro are heading straight there. The energy, reputation, and support from the Victorian Government have been major drivers for this" reports Jason Lim, contributor at Forbes.
- Population: 4.1 million
- Median Household Income: $80,704
- Monthly Rent: $2,202 (1-bedroom)
- Tech Niche: FinTech, Business
- Investors: Scale, Melbourne Angels, Starfish Ventures
- Accelerators: Slingshot, Melbourne Accelerator Program
- Universities: The University of Melbourne
- Tech Startups: Canva, Qualtrics, Nuix, Telstra, Receipt Bank, Bench
- Coworking Spaces: Spaces Works, Gravity Coworking, The Commons, Revolver Coworking
Build Your Startup in a Leading Tech Ecosystem
The world’s leading tech startup ecosystems provide an excess of venture capital funding, workspace options, mentorship opportunities, accelerator programs, and more. Joining a growth-oriented tech ecosystem allows entrepreneurs to scale at a higher velocity, tackle industry roadblocks with ease, and build next-generation products and services.
With locations in Silicon Valley and London, RocketSpace is an industry-leading tech community built for high-growth tech startups and scale-ups. With access to workspace, programming, and more, RocketSpace fuels tech startup innovation. RocketSpace alumni include Uber, Zappos, and Spotify.