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The editors at Biz Brain decided to research the topic of:
Where To Start a Tech Startup
Find the perfect fit for your next big idea
Silicon Valley vs. New York vs. London
Startup ecosystem size [1]
- Silicon Valley equals
- 3 New York Cities
- 4.5 Londons
- 12.5 Berlins
- 38 Boulders
Profiles/Flavor [1]
- Silicon Valley-Largest ecosystem, most mentors, strong early stage funding, most ambitious, high risk.
- New York-Diverse, niche (often urban) focus, Marketplace and social network focus, strong scaling stage funding, high risk.
- London-Well educated, big bets on previous winners, project management and e-commerce focus, low risk.
Product types [1]
- New York vs. Silicon valley
- Silicon Valley
- 2x more likely to make games
- 23% more likely to build social networks
- 3.5x more likely to build infrastructure
- New York
- 50% more likely to build marketplaces
- London vs. Silicon Valley
- Silicon Valley
- 35% more likely to build social products
- 3.5x more likely to utilize user generated content
- London
- 2x more likely to build project management software
Funding [2]
- By Stage
- Discover, Validation, Efficiency stages
- Silicon Valley raises 2-3 times more money
- Scaling
- New York raises 27% more
- By amount of venture capital
- [2012 total numbers]
- Silicon Valley--$11 billion
- New England--$3.3 billion
- NYC--$2.36 billion
- L.A.--$2.07 billion
- Midwest--$1.4 billion
- San Diego--$1.13 billion
- Northwest--$1.05 billion
- Texas--$.93 billion
- Southeast--$.82 billion
- D.C.--$.73 billion
- Colorado--$.58 billion
- Valuation
- Amount paid for companies as a multiple of earnings before interest, taxes, depreciation, amortization [3]
- U.S. companies= 11.3
- European companies= 9.9
Entrepreneur age [6]
- Silicon Valley-34.1
- L.A.-32.6
- Seattle-34.9
- NYC-32.6
- Boston-36.8
- Chicago-37.2
Mentorship [1]
- Silicon Valley has the most mentors, and the most helpful.
- 46% more helpful than mentors in London and NYC
Daily Work [6] [1]
- Silicon Valley-10 hours a day
- L.A.-9.6 hours a day
- Seattle-8.6 hours a day
- Boston-10.4 hours a day
- London-8 hours a day
- NYC-7 hours a day
Experience[1]
- Silicon Valley founders have started on average twice as many startups than their NYC and London counterparts.
Motives [1]
- Silicon valley founders are 30% more likely to want to change the world than NYC and London counterparts.
- New York has 50% more workers that just want to "make a good living" than their Silicon Valley counterparts
- London has 2x more founders that want a quick flip on their company than Silicon Valley and New York.
Going global?
There are now tech hubs worldwide, including
- Tel Aviv, Israel
- Toronto, Canada
- Vancouver, Canada
- Paris, France
- Sydney, Australia
- Sao Paolo, Brazil
- Moscow, Russia
- Berlin, Germany
- Santiago, Chile
- Bogota, Columbia
- Amsterdam, Netherlands
- Bangalore, India
- Dublin, Ireland
- Lisbon, Portugal
- Nairobi, Kenya
Though there are tech startup hubs worldwide, depending on your experience, niche, and motives, certain markets may be much better fits.
Citations
- [1] http://blog.startupcompass.co/the-rise-of-startup-ecosystems-silicon-valley
- [2] http://www.nvca.org/index.php?option=com_content&view=article&id=344&Itemid=103
- [3] http://blogs.wsj.com/tech-europe/2013/05/23/european-tech-firms-are-undervalued-report-finds/
- [4] http://www.washingtonpost.com/business/on-small-business/the-hottest-start-up-cities-in-the-world/2012/11/27/ba47b60a-382b-11e2-a263-f0ebffed2f15_gallery.html#photo=1
- [5] http://www.entrepreneur.com/slideshow/226477#10
- [6] http://money.cnn.com/gallery/smallbusiness/2012/11/27/best-global-startup-cities.fortune/16.html
