Bengaluru ranks 22nd in global start-up ecosystem; 5th for tech VC investment

India

oi-Prakash KL

Bengaluru,
Jun
16:
Bengaluru
has
been
ranked
22nd
in
the
global
start-up
ecosystem,
according
to
the
Global
start-up
Ecosystem
report
published
by
start-up
Genome
and
released
at
the
ongoing
London
Tech
Week-2022.

start-up
Genome
published
its
first
Global
start-up
Ecosystem
Report
(GSER)
in
2012.
The
10th
edition
of
the
GSER-2022
in
partnership
with
Crunchbase
and
Global
Entrepreneurship
Network
was
released
on
June
14,
2022,
ranking
the
top
30
and
10
runner-up
global
ecosystems
and
the
top
100
emerging
ecosystems.

In
the
2022
ranking,
Bengaluru
has
moved
up
one
place
from
last
year
to
22.
Bengaluru
scored
highly
on
categories
such
as
funding,
connectedness,
market
reach,
talent
and
experience
and
knowledge.

“This
ranking
mirrors
the
confidence
entrepreneurs
&
investors
globally
have
in
Namma
Bengaluru’s
ecosystem.
We
continue
to
grow
&
expand
our
global
footprint,”
said
Dr
Ashwathnarayan
CN,
Minister
for
Higher
Education;
IT
&
BT,
Science
&
Technology;
Skill
Development,
Entrepreneurship
&
Livelihood.
The
GSER-2022
measures
6
success
factors
in
each
ecosystem
such
as:
Performance
(ecosystem
value,
exits
and
start-up
success),
Funding
(access,
quality
&
activity),
Market
Reach
(global
leading
companies,
local
reach,
IP
commercialization),
Connectedness
(local
connectedness,
infrastructure),
Talent
&
Experience
(talent
access
and
quality,
scaling
experience
and
start-up
experience),
Knowledge
(research,
patents).
Each
of
these
factors
is
assessed
and
awarded
a
score
of
1
to
10,
with
1
the
lowest
and
10
the
highest.

The
report
also
identified
critical
factors
such
as
location
and
infrastructure,
tech
talent
and
access
to
funding
as
some
of
the
reasons
to
choose
Bengaluru
as
a
start-up
destination.

Bengaluru
is
also
among
the
top
15
global
ecosystems
in
funding
and
among
the
top
25
global
ecosystems
in
performance,
according
to
the
GSER-2022.
Bengaluru’s
ecosystem
saw
eight
USD
50
million
+
exits
–
three
more
than
in
the
GSER-2021
period
and
improved
in
market
reach.

When
start-up
Genome
published
its
first
GSER
in
2012,
Bengaluru
was
the
only
Asian
city
to
find
a
place
in
the
top
20-ranking
list.

Research
by
London
&
Partners
and
Dealroom
showed
that
Bengaluru
is
the
leading
Asian
city
and
5th
ranked
hub
in
the
world
for
tech
venture
capital
(VC)
investment
in
2022.
In
2021,
Bengaluru
outperformed
both
Beijing
and
Shanghai
in
the
amount
of
venture
capital
raised
and
number
of
rounds.

The
UK-based
research
agency
also
found
in
its
analysis
that
Bengaluru
ranks
8th
among
cities
globally
in
the
amount
of
VC
investment
attracted
by
its
Fintech
sub-sector.

Bengaluru’s
ecosystem
value
(2019H2-2021)
is
USD
105
billion
as
compared
to
the
global
average
of
USD
28.6
billion,
while
its
Total
Early
Stage
Funding
(2019H2-2021)
is
USD
2.1
billion
as
compared
to
the
global
average
of
USD
687
million.
The
Karnataka
capital’s
Total
VC
Funding
(2017-2021)
is
USD
21
billion
as
compared
to
the
global
average
of
USD
4.5
billion.

Investment
research
has
revealed
that
in
the
first
five
months
of
this
year
(January
to
May)
Bengaluru’s
tech
firms
have
raised
USD
7.5
billion
in
VC
funding,
considerably
higher
than
the
previous
record
of
USD
5.2
billion
during
the
first
six
months
of
2021.
The
city
aptly
named
the
“Silicon
Valley
of
India”
is
now
attracting
more
investment
than
other
global
hubs
like
Singapore,
Paris,
and
Berlin
and
is
trailing
behind
Boston
and
New
York.

Bengaluru’s
massive
growth
in
2022
is
largely
attributed
to
greater
access
to
funding
with
major
funding
rounds
in
2022
for
scale-up
tech
companies,
including
a
USD
55.7
million.
Its
Median
Seed
Funding
(2019H2-2021)
is
USD
5
million
as
compared
to
the
global
average
of
USD
4.7
million.