Startup cities in the entrepreneurial age
Global venture capital is crushing records in 2021. Over €264bn has been invested in the first six months of the year, two unicorns have been created every day in 2021, 170 cities around the world now home to at least one unicorn, and Europe is the fastest growing region for VC investment. Startups have become a leading source of job growth. In cities analysed by Dealroom, startup jobs grew by about 10% annually, or 2‒3x faster than the wider local economy*. Tech is also more resilient to external shocks (e.g. pandemic, Brexit). Today, 1% of European jobs are at startups (most are venture backed). In the US, where venture capital has been around for much longer, it is estimated that venture-backed companies are responsible for 10% of all jobs.
Record venture capital investment
Globally venture capital investment has smashed previous records with €264B in the first six months of 2021. This represents year-over-year (YoY) growth of 2.3xEurope is the fastest growing major region by venture capital investment (growing faster than US, China, Asia). Investment into European startups grew by 2.9x YoY to €49B.
Two new unicorns per day
Each day, more than two new unicorns emerged globally during 2021. There are now 1,601 unicorns and $1B+ exits of which 1,071 still private unicorns.The combined global value of tech companies has ballooned to over $35 trillion, of which $18T from companies founded after 2000, and $10T from companies founded after 2010. The rate of innovation is accelerating
Entrepreneurship is spreading
Knowledge about building startups is much more widespread. There are now 170 cities with at least one unicorn. Europe has the most unicorn cities.The Bay Area is still growing but its relative contribution peaked in 2014. The rest of the US has more unicorns, more VC funding and is growing faster by number of unicorns.
- Policy/Strategy
- Report
English
2021
- Europe
- General/no specific focus
- Cross-thematic/Interdisciplinary
-
Dealroom-Sifted-startup-cities-2021.pdf (pdf, 20.23Mb)
Entry created by Admin WBC-RTI.info on August 27, 2021
Modified on August 27, 2021
