We entered the year 2023, and we cannot pass the last year without touching on the events that took place in 2022 and significantly affected the ecosystem. In this article, we wrote about the results of the Global Startup Ecosystem Report, which takes place every year, and the startup trends predicted to have an impact in 2023.
The Global Startup Ecosystem Report (QSEGH) is an annual research report analyzing data from over 3 million companies across 280 ecosystems. This report is provided by Startup Genome, an innovation consultancy and research firm that develops innovation action plans for more than 45 governments worldwide. This year's report was presented by Jf Gauthier, the founder of the company, and revealed insights into the trends of the startup sector that will make a significant difference compared to previous years.
🚀 Let's take a look at these trends:
1. Change in Global Startup Ecosystem ranking (2022 edition of Startupblink magazine, verified by Crunchbase)
The same five ecosystems ranked high in 2020 and 2021. Despite this, Beijing has fallen one place, Silicon Valley is still in 1st place, and New York and London are in 2nd place. Beijing ranked 3rd and Boston 4th. Some major startup ecosystem hubs, including Seoul, Detroit, Oslo, and Helsinki, rose significantly in their rankings, with Seoul entering the top 10 for the first time. Overall, about 50% of the startups in the top 30 are from North America. The continent of Asia is ranked second with 30%. The ranking by countries is as follows:
- United States of America
- United Kingdom
The US maintains its status as the highest-ranked country in terms of the overall score, with the country's score nearly four times that of the second-placed UK. In total, the USA has 257 cities in the TOP 1000 startup ranking, which no other country can come close to.
Great Britain has significantly increased its lead over Israel, the 3rd country. and currently, it has been established as the 2nd highest-ranked country in the world startup ecosystem.
Israel was a little bit away from toppling the UK in 2021, and now it's a little bit further away. Although Canada's national ecosystem has had a fruitful year and is in 4th place, statistics show that the country is closing in on Israel. With this year's results, Canada has created a "Big 4" club in the ecosystem, creating a significant gap between the countries below it in the ranking. This only disappointed the countries below it. Now it is even more difficult to get into this top 4.
Azerbaijan ranked 85th in the ranking this year. This means an improvement of 3 ranks compared to last year. We at SABAH.lab feel satisfied with our contribution to this development!
2. Stagnation in the Unicorn wave?
Compared to 2021, which brought a total of 542 unicorns to the ecosystem, 244 startups became unicorns this year, almost half of last year's number. Despite the ever-increasing innovation efforts, the reasons behind the decline in this number are of interest.
In 2022, SaaS (software as a service) types of startups have generated serious interest. 6 SaaS startups serving different industries became unicorns this year, we should highlight that these numbers are 4 in 2021 and 1 in 2020.
Apart from SaaS, logistics companies have also attracted the attention of investors this year. The ecosystem of Asian countries, especially India, has started to contribute more to the global ecosystem in these types of startups. Three new logistics startups – XpressBees, Elastic Run, and ShipRocket – have become unicorns, bringing the total number of logistics unicorns in India alone to 7: In 2021, there was only one new logistics startup with a unicorn name and none in 2020.
3. Tech continues to rise!
Since the pandemic, companies that have launched technology-oriented projects have grown 2-3 times more than non-technology-oriented enterprises. In 2023, customer experience-centric companies are expected to transition to new and more technological tools for their customer database and its development. In the Oceania region, subsectors such as fintech dominate and account for approximately 30% of total venture capitalist funding. This is good news for the technology innovation sector, which is predicted to play a major role in the fight against climate change.
In brief, based on the signals indicated by the ecosystem, we must state that in 2023, the number of technology and digital-oriented startups will increase even more. In line with this trend, investors will pay more attention to business models that emphasize climate, the environment, sustainable development goals, and human comfort.