Thinking about launching a startup but worried that it won’t get any attention because it isn’t in Silicon Valley? Or that it won’t get any attention because it is in Silicon Valley and will be buried under a mountain of other startups?
Well the “Startup Genome” project that got underway last year finally has enough data to make the Startup Compass a valuable tool for measuring your startup against others in the area. It also highlights the hottest startup cities. Here are the details from TechCrunch:
With its data set growing, Startup Genome is beginning to launch a thorough, comparative analysis on those ecosystems in an effort to give startups a more granular glimpse into how (and at what rate) the world’s top entrepreneurial hubs are evolving — and which are leading the way. …
Typically, startups plant themselves close to extant networks of support, be it financial capital, human capital, or technologies. Startups go where the money is — and historically, that’s been Silicon Valley, with Boston and New York City being mentioned as addenda. Yet, over the last few years, things have been changing, and today that’s more apparent than ever, as viable companies are popping up across the globe.
Given this growing abundance of choice, it’s become increasingly important for entrepreneurs to be able to answer questions like, “What are the advantages and disadvantages of particular ecosystems?” and “What are the characteristics that differentiate successful entrepreneurs across those ecosystems?”
The team has begun to uncover valuable insights into the strengths and weaknesses of the world’s startup ecosystems, and as the study progresses, the founders say they hope it will continue to “yield insights for entrepreneurs deciding where to start their company, investors deciding where to allocate their capital, large companies looking for acquisition targets, and policymakers who want to make their entrepreneurship ecosystems flourish.” …
Now that the Startup Genome has a year’s worth of data from more than 16,000 startups they’ve started coming up with some interesting information. To date, the Genome has put out a collection of 20 insights after looking at startups in Silicon Valley, New York City and London. Here’s a sample:
Startup Success Rate: Proportionally, the Silicon Valley ecosystem has 22% more companies in the “scale stage” than in NYC and 54% more than in London.
Market Type: Silicon Valley entrepreneurs are 13 percent more likely to tackle new markets than London entrepreneurs whereas London entrepreneurs are 21 percent more likely than entrepreneurs in Silicon Valley to tackle existing markets with better products. New York entrepreneurs have the highest proportion of companies trying to re-segment existing markets with niche products. They are 30 percent more likely to build something niche than entrepreneurs in London.
Work Ethic: Companies in Silicon Valley work 35% more than companies in New York City. In Silicon Valley teams work 9.5 hours a day on average vs. 8 hours in London and 7 in New York City.
Founder Age: The average age of founders in all three ecosystems is about the same, with an aggregate average of 33.5.
See all 20 insights and a list of the top 25 startup cities at TechCrunch >>>