For the past several decades, Silicon Valley has undisputedly been the epicenter of technology innovation. An area of about 50 square miles is responsible for generating some of the world’s most prominent companies, including Google and Apple. But the rest of the world is catching up; the share of global venture capital funding going to US companies is declining as new tech hubs are emerging. Companies like Beijing’s Didi Chuxing, Jakarta’s Gojek, and India’s Paytm are prominent examples. Cities outside the US are attracting more funding, generating more unicorns, and creating thriving startup ecosystems.
This week’s presentation for Quartz members looks at the growth of global startup cities around the world and explores the obstacles they face as well as their advantages over more-established tech hubs.
The venture capital model for startup funding originated in Boston and was mastered in Silicon Valley. The US is by far the leader in VC investment, but its overall share is declining as the pool of global funding grows and promising startups from all over the world attract investors. In the 1990s, startups in the US received roughly 95% of global venture capital investment. By 2017, that number has declined to slightly more than 50%.