Startup cities in the

Entrepreneurial Age

8 JULY 2021
 Global data platform for intelligence on startups,
innovation, ecosystems and venture capital.
Created by Dealroom and Sifted, and supported by the
European Commission and European Parliament,
European Startups is a two-year project aimed at

x facilitating informed conversation and collaboration

among European tech ecosystem stakeholders, to take
Europe’s startup economy to the next level.

At the centre of the initiative is the European Startups

database, a definitive platform providing macro-level
trends. We also publish several research reports and
Financial Times-backed new media site organise a few events each year.
telling the untold Stories of European Tech.

Page / 2 EuropeanStartups.co
 Previous reports:

» Corporate innovation (June ‘21)

» Deep Tech (Jan ‘21)

» Index Ventures / Not Optional (Oct ‘20)

» Covid-19 Startup Survey (Jul ‘20)

» Europe stepping up (Jun ‘20)

» Launch report (April ‘20)

Page / 3
Join event
What you need to know.
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 2.3x
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.
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.

Europe 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.
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
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.

VC funding into startups globally €264B Unicorns and $1B exits 1,601 Cities with one or more unicorns 170

155
1,322
2.3x

€114B

50 22

H1 H1 H1 2010 2021 2010 2021

2012 ‘20 ‘21

Page / 5 Source: Dealroom.co

Why should cities care about startups and Europe’s share of world equity market value
unicorns? has shrunk, largely due to the rise of big tech.

Startups have become a leading source of job growth. In cities analysed by 35%
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 30%
longer, it is estimated that venture-backed companies are responsible for
10% of all jobs.
25%
Meanwhile, the global economy is transitioning to digital. Tech companies
are reshaping nearly every industry and tech giants are forming. US tech
companies are worth $24 trillion (the entire S&P 500 is $32T). They
contribute to 50% of all domestic R&D. About 70% of all AI experts work for
20%
Google, Facebook, Microsoft, Amazon. But despite the concentration of
economic power, entrepreneurialism is on the rise as startups are able to
scale faster than ever before. Younger cohorts of startups are creating as 15%
much value, actually taking advantage of the infrastructure of big tech (AWS,
Facebook, Google).
10%
This means there’s a huge opportunity for younger startup ecosystems, like
Europe and elsewhere. Europe’s startup ecosystem is coming of age.
Europe’s tech companies are now worth $3 trillion. Entrepreneurial
ecosystems are increasingly borderless, as startup teams can be distributed 5%
and venture capital is being invested remotely. This new reality means it’s
important to embrace and foster entrepreneurship more than ever. It also
means that ecosystems do not exist in isolation. This report therefore takes
a global perspective, of startup ecosystems in the entrepreneurial age. 2000 2005 2010 2015 2020
Source: Refinitiv (via Financial Times).

Page / 6 * Source: various reports including Amsterdam, Netherlands, and Berlin.

 The Entrepreneurial Age.
Transition to a digital economy
80% of the population is online and
increasingly expecting services to be online.
Simultaneously, tech makes it easier than
ever to launch and scale a company.
Supportive governments
Tech and entrepreneurship are being
recognised as resilient economic & job
growth engine. Global competition for
startups and capital has intensified (and
playing field has levelled).
Page / 7
The rise of startups everywhere
Startups have become the vehicle of choice
for rapid innovation. They’ve become great
places to build a career and fulfill individual
potential, for entrepreneurs and operators
from diverse backgrounds.
Availability of capital anywhere
Abundance of capital and capital moving
more towards venture. Tech has become the
safe asset. Capital is also accessible in more
places.
 Table of contents.

1 The rise of startups everywhere

2 Availability of capital anywhere

3 Benefiting from a distributed world

1 The rise of startups everywhere
“If you start a startup now, your parents won't freak out the way they would
have a generation ago, and knowledge about how to do it is much more
widespread.”

“But the main reason it's easier to start a startup now is that it's cheaper. Technology has driven down
the cost of both building products and acquiring customers.”

“Technology hasn't just made it cheaper to build and distribute things, but faster too. This trend has
been running for a long time. IBM, founded in 1896, took 45 years to reach a billion 2020 dollars in
revenue. Hewlett-Packard, founded in 1939, took 25 years. Microsoft, founded in 1975, took 13 years.
Now the norm for fast-growing companies is 7 or 8 years.”

Paul Graham
Co-founder of Y Combinator
written in April 2021 on
How People Get Rich Now
Over two new unicorns were announced each day
in the first half of 2021.
Inflection point around 2014.
New unicorns announced During 2021: What happened?
over 2 new
unicorns per day
400 ■ Population online/on smartphones
2018‒2020: (80% of adults as of today)
a new unicorn
every day 320
■ Scalable software (AWS) and global
300 285 distribution (Facebook, Google, ...)
available on-demand to any startup
2014‒2018: 255
a new unicorn 241
■ Massive growth of venture capital
every three days
industry
200
Until 2014: ■ Large pools of experienced talent
one unicorn every with knowledge of building startups
121 122
month and influx of new talent
90
100
71 ■ Chinese internet took off during
2014-2018
26 34
13 18

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
H1

Page / 11 Source: Dealroom.co

The US continues to outperform the rest of the world in terms of new
unicorns, especially the “Rest of the US” i.e. outside of the Bay Area.
Projected at
Number of new unicorns announced
current pace
250

Rest of USA
(excl. Bay Area)
200

150 Bay Area

100
Europe

Rest of Asia
50
RoW
China

2010 2012 2014 2016 2018 2020 2021E

Page / 12 Source: Dealroom.co

1,601 tech companies founded since 1990 Tech companies globally have reached a
that have crossed the $1 billion milestone. combined value of $35 trillion, of which $27
trillion (79%) after 1990.
Cumulative number of unicorns and $1B exits Cumulative valuation ($T)

1,601
$35T $35T

$30T

1,322
$25T
1990+
cohort
$20T $27 trillion

$15T

$10T

$5T Pre 1990

50 $1.9T cohort
$7.3 trillion *

2000 2010 Jan ‘21 Today 2010 2021

Page / 13 Source: Dealroom.co. * Pre 1990 includes companies like Microsoft, Apple, Intel, Adobe, IBM, Oracle, SAP.
 There are now 170 “unicorn cities” with one or more unicorn, of which 65 in Europe.

170
Cities with one or more unicorn
155 17 RoW

15 23 China
140
12 21
119 Rest of Asia
20 23
(excl. China)
8 20
95 15 17
6
78 16 42
11 USA
38
65 3 34
10 11
52 3 30
7 9
2 6 27
38 3
6 24
28 32
3 24
22 4 20 65 Europe
3
4 57 61
3 50
3 18
11 15 40
14 32
13 21 25
10 13
7 8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page / 14 Source: Dealroom.co

 Since 2014, the number of cities with one unicorn grew from 28 to 71. The number
of cities with over 10 unicorns grew from 2 to 29.

Number of cities by size ▉ in 2014 ▉ in 2021

0 10 20 30 40 50 60 70

Cities with 1 unicorn 28 71

Cities with 2 unicorns 11 26 (incl. Prague, Belo Horizonte, Dubai)

3 unicorns 1 15 (incl. Dublin, Vienna, Montreal)

4 unicorns 8 8 (incl. Helsinki, Tampa, Madrid)

5 unicorns 2 8 (incl. Houston, Copenhagen, Manchester)

6 to 10 unicorns 4 13 (incl. Atlanta GA, Hong Kong, Tokyo)

11 to 20 unicorns 1 16 (incl. Berlin, Singapore, New Jersey, São Paulo, Bengaluru)

21 to 50 unicorns 0 6 (incl. Seattle, Chicago, Paris)

>50 unicorns 1 7 (incl. Bay Area, New York City, Beijing)

Page / 15 Source: Dealroom.co

 Success breeds success. Of the 28 cities with one unicorn in 2014, 82% have more in
2021, and several have more than 10.
Unicorns & $1B+ exits per city
Paris, Shenzhen (21 unicorns each)
20

Salt Lake City Metro (16)

15 New Jersey (15)
San Diego (14)

New Delhi (11)

10 Toronto (10)
Cambridge (9)

Sydney, Raleigh-Durham (6)

5 Manchester (5)
Madrid, Tampa (4)
Barcelona, Basel, Jerusalem (3)
Prague, Leed, Moscow (2 unicorns each)
1

2014: 28 cities with 2021: most have

one unicorn several unicorns

Page / 16 Source: Dealroom.co

Several first-time unicorn cities were born in 2020 and 2021.

Mo i Rana

Nedre Vats
Glasgow Malmo
Sheffield
Tattenhall Munster

Bend, OR Grand Rapids Venlo Almaty

Pittsburgh Baoding
Malmo
Kansas City St. Louis
Lexington Tirat Carmel Zhengzhou
Morehead, KY Anhui
Cairo Riyadh
Orlando, FL
Mexico City Thane
Chennai

Accra

Bello Horizonte

Montevideo

Page / 17 Source: Dealroom.co

 Where the world’s unicorns and $1B+ exits are based.

USA China Europe Rest of Asia RoW

853 (53%) 280 (17%) 268 (17%) 132 (8%) 68 (4%)
São
30 14
Tel Aviv Paulo
London 71
Bay Area 392
Beijing 113
Singapore 18
Melbourne 14

Paris 21
Bengaluru 14
Berlin 19 Toronto 10
New York City 113
Stockholm 18 Seoul 13
Greater Boston Region 61 Shanghai 63
Amsterdam 13 Sydney 6
Greater Los Angeles 54 Munich 11 New Delhi 11
Hangzhou 21
Seattle, WA 28 Montreal 3
Shenzhen 21
Chicago 21 Hong Kong 8
Nanjing 10
Austin, TX 16
Salt Lake City metro, UT 16 Guangzhou 7
Rest 115
New Jersey 15
Rest 21
Rest 38
Rest 45
Rest 137

Page / 18 Source: Dealroom.co

When looking at earlier stages, Europe is starting to take a more prominent place.

Combined Total Unicorns Number of Number of

enterprise value and $1B+ exits New unicorns Future series A+ seed stage
since 1990 * since 1990 since 2020 Unicorns ** companies companies
3% 4% 4% 5% 5% 7% RoW
6% 8% 9%
10% 10% 9% Rest of Asia
10%
17% 15% 14%
20%
17%
8% 35% Europe
17% 14% 6%

3% China

64% 65%
56% 58%
53%
47%
USA

Page / 19 Source: Dealroom.co * Combined enterprise value of all startups & tech companies founded since 1990. ** Future unicorns are valued $250M-$1B and funded in last 5 years.
The USA, China and UK are the top three countries by number of unicorns and
$1B+ exits. Australia, Canada and Brazil are the fastest growing.

Unicorns and $1B+ exits

USA 875
China 280
United Kingdom 100
Germany 43
Israel 34
India 34 Growth: increase in number of Unicorns since 2015
France 23 Australia 21x
Sweden 21 Canada 19x
Brazil 19x
Australia 21
Hong Kong 10x
Canada 19 Japan 7.0x
Switzerland 6.5x
Brazil 19
Norway 6.0x
Netherlands 19 Spain 6.0x
France 5.8x
Singapore 18
Sweden 5.3x
South Korea 15 South Korea 5.0x
India 4.3x
Switzerland 13
4.3x
Israel
Hong Kong 10 Denmark 4.0x
Japan 7 Belgium 4.0x
United States 3.9x
Norway 6 Germany 3.9x
Spain 6 Singapore 3.6x
China 3.2x
Indonesia 6 Netherlands 3.2x
Denmark 4 United Kingdom 3.0x
Indonesia 3.0x
Finland 4 Mexico 3.0x
Belgium 4 Ireland 3.0x
Nigeria 3.0x
Russia 4 Italy 3.0x
Mexico 4 Austria 3.0x

Page / 20 Source: Dealroom.co

 The Bay Area, Beijing, New York and London are the top hubs, while Salt Lake City, New
Jersey and São Paulo are the fastest growing by number of Unicorns.

Unicorns and $1B+ exits

Bay Area 392
Beijing 113
New York City 113
London
Shanghai
71
63
Growth: increase in number of Unicorns since 2015
Greater Boston Region 61 Salt Lake City metro 16x
Greater Los Angeles 55 New Jersey metro 15x
São Paulo 14x
Tel Aviv 30 San Diego 14x
Seattle 28 Melbourne 14x
Paris 21 Nanjing 10x
Toronto 10x
Hangzhou 21
Philadelphia 10x
Shenzhen 21 Hong Kong 8.0x
Chicago 20 Paris 7.3x
Guangzhou 7.0x
Berlin 19
7.0x
Tokyo
Singapore 18 Greater Los Angeles 6.8x
Stockholm 18 Seoul 6.5x
Austin 16 Boston Metro 6.1x
Tel Aviv 6.0x
Salt Lake City metro 16
Sydney 6.0x
New Jersey 15 Dallas 6.0x
São Paulo 14 Raleigh-Durham 6.0x
Detroit 6.0x
Bengaluru 14
5.5x
Munich
San Diego 14 New York City 5.4x
Amsterdam 14 Mumbai 5.0x
14 Houston 5.0x
Melbourne
Manchester 5.0x
Washington DC 14

Page / 21 Source: Dealroom.co

 Explore over 1,600 unicorns online.

Why count unicorns?

With so many unicorns, the term itself has become a
misnomer. Still, it’s a very helpful metric to measure
the development local ecosystems. The rise of a new
unicorn creates a boost for local ecosystems (the
founders, employees, the investors) which creates
tons of positive second order effects. Every day, two
unicorns emerge. To keep track of them all, we’ve
created a dedicated page, including a set of definitions.
Check out the link below to explore:

» New unicorns in 2021

» Private unicorns

» Rumoured unicorns

» More ...
2 Capital available anywhere
Global venture capital is crushing previous records in 2021.
Global venture capital investment » view online
€264B

2.3x

▊ Megarounds plus €250M+

€200B

▊ Megarounds €100M–€250M
€114B

€100B

▊ Series C €40M–€100M

▊ Series B €15M-€40M
▊ Series A €4M-€15M
▊ Seed €1M-€4M
▊ Pre-seed €0M-€1M
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page / 24 Source: Dealroom.co

In Europe, the growth in venture capital is even more pronounced.
European venture capital investment » view online

€50B €49B
2.9x

€40B
▊ Megarounds plus €250M+

€30B

▊ Megarounds €100M–€250M

€20B €17B
▊ Series C €40M–€100M

€10B ▊ Series B €15M-€40M

▊ Series A €4M-€15M
▊ Seed €1M-€4M
▊ Pre-seed €0M-€1M
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page / 25 Source: Dealroom.co

Europe’s share of global venture capital is higher than it’s ever been, now 18%. China’s share
of global Venture Capital has been shrinking.
Venture capital investment by destination » view online
100%
7% RoW

12% Rest of Asia

80%
11% China

60%

52% USA
40%

20%

12% 12% 14% 12% 11% 12% 13% 16% 15% 18% Europe
9% 10%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1

Page / 26 Source: Dealroom.co

 Nearly all regions are seeing rapid growth in VC investment.
VC investment by destination
USA Europe China
$160B $60B $60B
$53B
$154B
+2.9x
$40B $40B
+2.3x $30B
+1.6x
$120B
$20B $20B

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2010 2012 2014 2016 2018 2020 2021 2010 2012 2014 2016 2018 2020 2021
$80B

Rest of Asia (excl. China) Rest of the World Latin America

$12B
$12B $8B
$40B $9B
$34B
+3.3x +5.5x
$30B +2.3x
$8B $6B
$40B

$20B

$4B $3B
$10B

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2010 2012 2014 2016 2018 2020 2021 2010 2020 2021 2010 2021 2010 2021

Page / 27 Source: Dealroom.co

Northern Europe has been one of the world’s fastest growing regions for VC investment.

Venture capital investment in H1 2021 2021 YoY growth by country

USA $153.6B USA 2.3x
China $30.3B China 1.6x
UK $17.1B Norway 12.4x
Germany $8.4B Netherlands 7.0x
Sweden $6.8B Sweden 6.9x
France $5.2B Denmark 5.2x
Netherlands $3.6B Spain 4.2x
Spain $1.9B Austria 3.9x
Switzerland $1.7B Finland 3.2x
Finland $1.3B Germany 2.8x
Denmark $1.1B UK 2.7x
Norway $1.0B Italy 2.2x
Ireland $1.0B France 1.8x
Belgium $0.8B Switzerland 1.7x
Austria $0.5B Russia 1.6x
Russia $0.4B Belgium 1.3x
Italy $0.4B Ireland 1.1x
Canada $7.8B Nigeria 9.2x
Brazil $4.8B Colombia 9.2x
Australia $1.8B Mexico 8.6x
Mexico $1.5B Canada 4.3x
Colombia $1.0B Brazil 4.3x
Nigeria $0.5B Australia 1.6x
India $10.3B Turkey 21.1x
Israel $4.6B Hong Kong 5.6x
Indonesia $4.2B South Korea 3.0x
Singapore $3.3B UAE 2.7x
Hong Kong $2.8B Indonesia 2.5x
South Korea $2.5B Israel 2.2x
UAE $1.3B Vietnam 2.2x
Turkey $1.3B India 1.9x
Japan $0.7B Singapore 1.5x
Vietnam $0.6B Japan 1.0x

Page / 28 Source: Dealroom.co

 Venture capital has become more global, especially more flows from USA and
Asia into European marketplaces.
% of investment by source of capital
Global startups USA startups European startups Asian startups
Source of capital
» view online » view online » view online » view online
100% ▊Unknown HQ
▊ RoW
90% Asia Asia Asia
Asia
▊Asia
80%
Europe
70% USA USA
USA
60%
Europe Domestic ▊ USA
50% Europe cross border

40% Europe
Domestic
30% ▊ Europe

Domestic
20%
Domestic
10%

0% ▊ Domestic

10 21 21
21

10

21

10

10
20 20 20
20

20

20

20

20
Page / 29 Source: Dealroom.co
2021E average European per capita funding still lags the US and Israel. But
individual countries like the UK, Sweden and Finland have closed in significantly.
Venture capital funding per capita in 2021E

$1,329 Sweden
Venture capital funding per capita
in 2016-2021E

$1,011 Israel

$883 USA

$479 UK
$478 Finland
$407 Netherlands

$201 Germany
$150 France

Page / 30 Source: Dealroom.co

3 Benefiting from a distributed world

“Distribution of
innovation is a wonderful
thing. It's such a net
positive for society.
“Innovation can happen anywhere. Distribution right now is
a wonderful thing. If you follow Twitter in the US, it seems
like every entrepreneur and VC is moving to Miami or
Austin, Texas. Some amount of that is real and that's good.
Digital tools allow you to do that. That couldn't have
happened 10 years ago and it's such a net positive for
society.
But the reality is that clusters of people who work together
will continue to work in those locations and the real
innovation and creativity is when you have the interaction
of humans and ideas, and that will always continue to
happen in the cities as it has in the past.”

Mark Suster “We have invested in many companies over the last year
Partner, Upfront Ventures where I have never met the founders in person. That's
Dealroom x Sifted event mindblowing for me. But just remember that raising
money is a bit like Ireland in the 90’s — no divorces
allowed.”
 Cumulative number unicorns and $1B+ companies
“Peak Bay Area was in 2014.” in the US.

Peak Bay Area ?

“The meme right now is that the pandemic has finally
kicked the Bay Area off its pedestal.… But the reality for us 30 44 58 83 126 182 217 262 395 518 666 853
and our portfolio is that the Bay Area’s share of companies
in our portfolio has been declining for seven years. 100%

90%
“Following the 2008 financial crash, the region was both ▊Rest
substantially cheaper and had a strong corps of technical 80%
talent. But by the mid-2010s, the stresses and pressures
of the rising cost of living became widely known, it became 70%
▊Boston *
much harder to compete against Big Tech companies on
60%
recruiting and so this trend began reversing as companies ▊New York
began spreading out. By 2018, fewer than half of our 50%
companies in the fund beginning that year were based in
Northern California.“ 40%

30%
▊Bay Area
20%
Kim-Mai Cutler
Initialized Capital 10%

10 11 12 13 14 15 16 17 18 19 20 21
20 20 20 20 20 20 20 20 20 20 20 20

Page / 33 Source: Dealroom.co | *Greater Boston Region.

By number of future unicorns, New York and Boston together are getting close to
Silicon Valley size. The center of gravity is shifting away from Bay Area.

Unicorns and $1B+ exits * Future unicorns *

1.7x 1,000

Denver (28)
Chicago(29)
Atlanta (29)
Seattle (30)
594 Washington DC (31)
Austin (36)
Greater Los Angeles (66)
1.2x
461
San Diego (68)
Top-3 cities are
392 already as large as Bay
New Jersey (15)
Greater Boston Region (195) Area. New York and
Salt Lake City (16)
Austin (16) Boston cluster cover
Chicago (21)
Seattle (28)
roughly same travel
Greater Los Angeles (54) area as Bay Area.
New York City (219)
Greater Boston Region (61)
New York city (113)

Bay Area Rest of USA Bay Area Rest of USA

Page / 34 Source: Dealroom.co | * number of startups founded since 1990 that reached $1B+ valuation or $250M-$1B for future unicorns.
 Believe the hype? Miami and Houston are
the US metros with largest migration "It used to be that you waited until 10 to 15 years
changes for software and IT workers. into your career and then you could make a choice
about where you wanted to live. Now it's like, oh
Market area Year-over-year percent change
yeah, I came to California for a year, now I can go
be where I want to be. (Joseph Woodbury)”
Miami-Fort Lauderdale 15.4%

Houston 10.4%
“Pandemic moves are redistributing coveted tech
Dallas-Fort Worth 8.6%
workers more evenly across the country after
Philadelphia 8.1%
being so heavily concentrated in just a handful of
Los Angeles
cities for years.
6.5%

Atlanta 2.9%

Denver, Colorado 0.5%

Chicago -5.1%
“This is also expected to help spread wealth, job
Austin -8.0%
opportunities and startup creation in new places.”
Washington D.C. / Baltimore -9.6%

Boston -9.7% Kim Hart

Seattle -17.2% Axios article “COVID-19 scatters tech
New York City -18.2% hubs for young talent”
San Francisco Bay Area -35.8%

Page / 35 Analysis comparing metro areas’ inflow-outflow ratio based on LinkedIn users’ profile location changes from March
2020 - February 2021 vs. March 2019 - February 2020 (via Axios)
 Unicorn cities in the US
Growth: increase in number of Unicorns >300
>100 >50 >10 >5 >2 1
since 2015 unicorns

Salt Lake City, UT 16.0x

New Jersey 15.0x
San Diego, CA 14.0x Seattle

Philadelphia, PA 10.0x
Greater Los Angeles 6.8x
Greater Boston Region 6.1x Portland
Dallas, TX 6.0x Bend
Raleigh-Durham 6.0x
Detroit, MI 6.0x Minneapolis
Greater Boston
New York City 5.4x Buffalo
Grand Rapids
Connecticut
Chicago Detroit New York City
Salt Lake City Cleveland New Jersey
Bay area
Pittsburgh
Denver Columbus
Philadelphia
Indianapolis Washington DC
Density: number of unicorns per 1M Las Vegas Kansas City St. Louis Morehead
inhabitants Lexington
Santa barbara Raleigh-Durham
Nashville
Albuquerque Charlotte
Bay Area 50.3 Greater Los angeles
San Diego Phoenix
Austin, TX 16.0 Atlanta Columbia

New York City 13.6 Dallas

Salt Lake City, UT 13.3
Greater Boston Region 13.3
Austin
Santa Barbara, CA 8.0 Houston Orlando

Seattle, WA 7.0 Tampa

Miami
Raleigh-Durham 4.3
San Diego, CA 4.2
Denver, CO 3.4

Page / 36 Source: Dealroom.co

Utah is the fastest growing state in the US when it comes to Unicorn creation.
“Utah's culture is its secret
sauce. Founded by bold,
principled, industrious, and
courageous pioneers, that spirit
lives on in our state.”
David Carlebach
Vice President
International Investment
World Trade Center Utah
Unicorns and $1B+ exits in Utah
“Utah is one of the most entrepreneurial states
in the US, and this is a major factor in our
status as the fastest growing economy in the
US. Startups help us grow now and create
cornerstones of our economy in the future.
Qualtrics, Merit Medical, and Black Diamond
Equipment were once startups in Utah. Startups
from outside the state add to this growth engine,
16x
and we welcome the talent, diversity, and capital
they are able to bring with them and to attract.”
“Utah has outstanding social cohesion. Our
government, community, and business leaders
compromise and collaborate and are kind and
civil. They believe in the One Utah Roadmap
where the state's success benefits everyone.”
1x

14

15

16

17

18

19

20

21
20

20

20

20

20

20

20

20
Page / 37 Source: Dealroom.co
“Atlanta’s competitive edge is its diversity”
Nathan Regan Lexie Newhouse
Senior Vice President, Innovation & Entrepreneurship
Economic Development Program Manager
Invest Atlanta Invest Atlanta
“Atlanta’s , tech industry accounts for 12.5% of the
city’s economy. Announcements such as Microsoft and
Airbnb making the move to Atlanta continue to pop up
across the city with new offices and opportunities.
What continues to attract both homegrown startups
and transplants is access to capital, talent, programs
and corporations.
“With 22% of residents living below the poverty line,
access to capital for minority entrepreneurs is a
challenge, particularly due to a lack of generational
wealth among African American families. This is key
for startups, where many source their first rounds of
funding from friends and family. Atlanta continues to
prioritize access to capital for black and brown
communities through institutions like the Fearless
Fund and Zane Venture Fund, in addition to Invest
Atlanta’s low-interest loan programs.
“Talent from the city’s local universities and colleges
is another advantage in the ecosystem, especially
with the presence of Historically Black Colleges and
Universities (HCBUs) like Morehouse College, Spelman
College and Clark-Atlanta University. Programs like
Invest Atlanta’s Students2Startups, which provides
subsidized internships for college students to local
Atlanta startups, and efforts with the City’s workforce
development arm, WorkSource Atlanta, helps train up
tech talent and fuel these diverse tech talent pipelines.
Percentage of tech workers
that are African American.
(source: Center for American Progress)
21%
2%
Atlanta USA average
“The city features many programs devoted to
supporting minority entrepreneurs. The Women’s
Entrepreneurship Initiative (WEI), powered by Invest
Atlanta, is believed to be the only city-funded
incubator for women in the nation. Other incubators,
accelerators and coworking spaces like the Russell
Center for Innovation and Entrepreneurship (RCIE),
Atlanta Tech Village (ATV), Advanced Technology
Development Center (ATDC) and The Gathering Spot
play a significant role in fostering community and
providing access to technical assistance and capital
across the city. Entrepreneurs and ecosystem leaders
like Paul Judge of Pindrop, Jewel Burks Solomon of
Google for Startups and Joey Womack of Goodie
Nation truly power these programs and partnerships.
As many global tech hubs recognize, there must be a
collaborate effort and succinct vision across all facets
of the ecosystem.
“Atlanta’s entrepreneurial tech ecosystem reaches
far beyond the city. Through partnerships among
Invest Atlanta, The Mayor’s Office of International
Affairs, Metro Atlanta Chamber of Commerce, Georgia
Department of Economic Development and others,
Atlanta continues to compete and collaborate with
neighboring tech hubs. Most recently, Atlanta was
officially named a ‘La French Tech’ Hub by France’s
Ministry of Economy, Finance and Recovery, for
instance.”
 Houston
Susan Davenport
Chief Economic Development Officer
Greater Houston Partnership
“We are America’s most diverse city with one in four
Houstonians born outside the U.S. Because of this global
spirit and entrepreneurial outlook, we’re not a place
where folks will get in your way, but rather understand
that as each Houston company, start-up, etc. succeeds,
we all get a little bit better.”
Notable tech companies:
Page / 39 Source: Dealroom.co
Orlando
Sherry Gutch
VP Innovation
Orlando Economic Partnership
“Orlando’s innovation economy launched with the country’s
space race and has not slowed down since man landed on the
moon. From simulation and defense to autonomous vehicle
technology, the diverse industries that make up Orlando’s
collaborative businesses community foster an innovation-driven
environment helps the region lead the nation emerging
technologies and experiential entertainment.”
Notable tech companies:
Fastest growing hubs in the US.
Growth (2021E vs. 2016)

Page / 40 Source: Dealroom.co

 Unicorn cities in Europe
Growth: increase in number of Unicorns
since 2015
Mo i Rana

Paris 10.5x
Munich 5.5x
Manchester 5.0x
Stockholm 4.5x
Amsterdam 4.3x Helsinki Saint Mosc
70+ Oslo Petersburg
Madrid 4.0x Stockholm
Berlin 3.8x
Nedre Vats Tallinn
Borås

18-21 Riga
Edinburgh
Glasgow Copenhagen Malmö
Peterborough Vilnius
10+
Fastest growing new Unicorn Cities, Manchester
London Amsterdam Hamburg Berlin
Dublin
2015-2021 Münster Poznań Warsaw
5+

Zurich (Metro) +7 Prague

1-5 ParisLuxembourg Munich
Copenhagen +4
Oslo +4 Stuttgart Vienna
Basel Zurich
Hamburg +4
Lausanne
Malmö +3
Milan
Vienna +3 Grenoble
Dublin +3
Lausanne +3
Milan +3
Barcelona
Madrid

Page / 41 Source: Dealroom.co

 Amsterdam Joël Dori
VC investment Startup Liaison
€2.5B €2.3B StartupAmsterdam
+13.6x
€2.0B
“The City of Amsterdam, along with private stakeholders, is actively
engaged in creating a local ecosystem that facilitates the rapid growth of
€1.5B
startups and increases the business sector’s commitment to social
€1.0B
responsibility and inclusiveness. Startups are attracted to the city
because it’s a city with a large talent pool, great infrastructure, ease of
€0.5B doing business and a high quality of life. Amsterdam is a pocket-sized
world city, providing the best of both worlds: a buzzing business culture
and a high level of connectedness. Everybody is just one bike-ride away.”
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990) Number startup jobs

€208B _ Home grown
€200B
_ Foriegn 77K*
65K
€150B

€100B

€50B

2017 2019
2010 2012 2014 2016 2018 2020 2021
» Explore Amsterdam’s Startup Ecosystem
Page / 42
Page / 42 Source: Dealroom.co | *Startup jobs in Amsterdam - 2020
Madrid
VC investment
€0.4B
Eduardo Díaz Sánchez
+4.1x Head of Unit
€0.4B Fundación madrid
€0.3B
“In few years the Madrid Region has become a consolidated
€0.2B ecosystem and one of the largest startup centers in Europe, thanks to
its intrinsic capacity to unite the action of investors, companies,
€0.1B
facilitators, university and research centers, renowned business
schools, ... with a diverse business vision, led by many national and
international young talents. Madrid exports talent and cooperates
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 with other places, but also attracts many entrepreneurs from other
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
parts of the world.”
Enterprise value (companies founded after 1990)
€14.5B
€15B “The coming years will be vital for the world and the Madrid Region
trusts startups as innovation driver to achieve the objectives and
challenges related to sustainable development, digitization, health,
€10B the sharing economy, … but also the recovery of sectors such as
tourism or transport. Technologies, i.e. artificial intelligence, medtech,
big data, ... and Madrid strong and diverse startup ecosystem has
€5B
much to offer in this context.”

» Explore the Madrid Startup Ecosystem

2010 2012 2014 2016 2018 2020 2021

Page/ /4343
Page Source: Dealroom.co
London Janet Coyle
VC investment Managing Director Business Growth
€10B €9.2B London & Partners
+2.2x
€8B
”London has the “finance” of New York, the “tech” of Silicon Valley and
€6B the policymakers of Washington, all within a 15 minute journey by tube.
These factors make London one of the world’s most connected global tech
€4B
hubs in the world, with all the necessary ingredients for startups to
succeed, from investors to world-class universities and talent to
€2B
policymakers – this is our secret sauce.”

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 “London is an outward looking, diverse global city that continues to build

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
strong relationships with tech hubs across Europe and around the world. It
Enterprise value (companies founded after 1990) is fundamental for global tech hubs to work together, to share expertise
€438B and knowledge, and to drive forward progress and innovation. Working in
€400B collaboration with cities in Europe allows Europe to continue to compete on
the global stage, with the likes of the US and China. Europe had a record
€300B year for VC investment last year, and global investors are increasingly
interested in what is going on across the pond from the traditional tech hub
€200B in Silicon Valley. There is a lot that European tech is bringing to the table
and we are very excited for the future of London and Europe’s thriving tech
€100B scene.”

2010 2012 2014 2016 2018 2020 2021 » Explore the UK Startup Ecosystem
Page/ /4444
Page Source: Dealroom.co
 Berlin Norbert Herrmann
VC investment Startup Affairs
€4.1B
€4B
Berliner Senatsverwaltung für
+4.4x Wirtschaft, Energie und Betriebe
€3B
“Looking at automotive and Mittelstand you will find well
€2B performing regions outside of Berlin. However, looking at e.g. the
overall unemployment rate there is room for additional progress.
€1B This is where the innovative startup ecosystem was and still is
playing an important role to make Berlin shine and move ahead.”

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 “There are so many ingredients in the Berlin secret sauce, two

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
important ones are: Berlin is epicentre and melting pot for
Enterprise value (companies founded after 1990) innovators and creatives from all over the world. They come and join
€150B €145B
the Berlin movement because Berlin is a lovable, diverse and always
changing environment. Also, Berlin has a startup history, beginning
with Alando, StudiVZ, gate5 and others. The former founders grew
€100B to now be established as important players, educators and investors
in today's ecosystem.”

€50B

» Explore the Berlin Ecosystem

2010 2012 2014 2016 2018 2020 2021
Page / 45
Page / 45 Source: Dealroom.co
Paris
VC investment
Anne Gousset
€3.2B
Deputy Director General
€3B
+2.1x Paris&Co

€2B
“Innovative start-ups actively contribute to the economic and
sustainable development of the territory. Through their concrete
€1B solutions, they respond to major urban challenges: improving the
daily lives of citizens, solving the needs of businesses, communities,
or public services. Also creating jobs, they are helping to transform a
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
more inclusive and resilient city!”
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990) “It is a combination of public and private investments to reduce risks
€99B
at launch and then guarantee a good take-off ramp, combining real
€100B estate, capital, engineering, visibility. All addressed by a significant
number of private and public operators engaged in the development
€80B
of these startups. An effective mix of practical tools, skills and
€60B
business opportunity creation that leads to a sustainability rate of
80% at 5 years of the companies supported, vs 50% at the national
€40B level.”

€20B

» Explore France’s Tech ecosystem

2010 2012 2014 2016 2018 2020 2021
Page / 46
Page / 46 Source: Dealroom.co
 Cologne Porto Switzerland
Gil Baxpehler Daniela Monteiro Nicolas Bürer
Startup Unit Cologne Head of Entrepreneurship Managing Director
KölnBusiness Porto Digital digitalswitzerland

“Cologne needs startups if it wants to continue
its path of economic growth. Startups are a big
economic driver and will secure a big portion of
jobs in the future. It also ensures there is always
innovation coming into various markets and
companies are able to develop as well as to keep
the markets lively.
We have a massive industry over here and the so
called “Mittelstand” but they can’t find all the
solutions themselves and need help with their
digitization efforts. Last, startups are also a good
example how to deal with failure or bad decision
by trying again and looking for solutions rather
than giving up.”
“Startups bring dynamism and innovation to the city
and the region. They also address the big challenges
our society faces. Even if a big amount of startups
that survive are unable to scale their growth, the
small portion that does, the scaleups, tends to make
a very relevant contribution to competitiveness in
the region. Once startups become scaleups, they
tend to make a very relevant contribution to
innovation, economy and they have a big impact in
society. The integration of scaleups in an
entrepreneurial ecosystem promotes a set of
positive effects, direct and indirect. These
companies generate high qualified jobs,
competitiveness, which has a consequence in
aggregate productivity, leading to more
opportunities that result in a better quality of live
for all.”
“For Switzerland's future competitiveness, it is
important to bring forth innovations and
successfully master digital transformation. The
true value of startups, and this does not only
apply to Switzerland, lies in doing just that, in
driving technological and digital innovation,
rethinking markets and existing business
patterns, and finding new solutions to "old"
problems. Successful startups not only
strengthen a country's innovative power, but also
create jobs. They also serve as role models for
others and encourage them to set up ventures.
Switzerland is home to one of the most modern,
most developed and fastest growing startup
ecosystems in the world.”

» Cologne Startup Ecosystem » Porto Startup Ecosystem » Swiss Startup Ecosystem

Page / 47
 Unicorn cities in Asia
Growth: increase in number of Unicorns
since 2015
Nanjing 10.0x
Hong Kong 8.0x
Guangzhou 7.0x
Tokyo 7.0x
Seoul 6.5x
Mumbai 5.0x
Jakarta 5.0x
Suzhou 4.9x
Beijing 4.8x Almaty
Shanghai 4.8x Beijing
4.7x
Seoul
Bengaluru
Singapore 4.5x Zhengzhou Tokyo
Guangyuan Qingdao
Wuhan
Chengdu
Density: number of unicorns per 1M Guiyang
Shanghai
inhabitants New Delhi
Changsha
Shenzhen
Taipei
100+ Ningde
Beijing 5.3
Singapore 3.0 Guangzhou
Mumbai Hong Kong
Shanghai 2.4 Pune Bengaluru
Hangzhou 2.0 Thane Chennai Bangkok
15+ Manilla
Shenzhen 1.7
Bengaluru 1.7
Seoul 1.3
10+
Hong Kong 1.1 Singapore
Dubai 0.6
Tokyo 0.5
5+
Jakarta 0.5
Suzhou 0.5 1-4
Guangzhou 0.5 Jakarta

Page / 48 Source: Dealroom.co

Singapore: a tech ecosystem that has the best of all worlds doesn’t exi…
Yong Cong CHOY
Regional Vice President (Europe)
Singapore Economic Development
Board
As a small nation with no natural resources,
Singapore has always strived to remain open and
collaborative. Even before the rise of digital tech,
Singapore had established links with other
innovation hubs in the world. Tech has “shrunk” the
world. Therefore, it is imperative for Singapore to be
well-connected with other global tech hubs and be
a key node in that network.
Page / 49 Source: Dealroom.co
Singapore has benefited tremendously from
startups. Startups inject new ideas and ways of Unicorns per 1m inhabitants
working into cities, offer exciting careers and help to
make cities more liveable. From embedding tech Israel 3.8
into spaces and turning them into smart homes and
offices to using autonomous robots to deliver Singapore 3.0
groceries.
Sweden 2.1
The Nongsa D-Town is an example of how
collaboration and competition can coexist. Switzerland 1.5
Nicknamed “the Digital Bridge between Singapore
and Indonesia”, D-Town allows Singapore-based Hong Kong 1.2
companies to hire Indonesia’s pool of young tech
talent and access the Indonesian market. Netherlands 1.1
Scale-ups looking to internationalise often look to United States 0.9
Singapore as a “scale-up launchpad” where they
can tap into Southeast Asia’s huge market and Australia 0.8
access talent. Companies like Zoom, Endava, Palo IT
and Bytedance are leveraging Singapore’s tech China 0.2
ecosystem to grow their business. Revolut
amassed 77,000 customers in less than two years United Kingdom 0.1
after establishing their SEA business in Singapore.
Australia & New Zealand
Melbourne, Victoria
VC investment
€2.0B
€1.7B
+1.5x
€1.5B
Sydney, NSW Wellington, NZ
€1.1B
Xero
€1.0B

€0.5B

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990)

€200B €185B

€150B

€100B

€50B

2010 2012 2014 2016 2018 2020 2021

Page / 50 Source: Dealroom.co

Page / 50
 “Startups play a valuable role in
Victoria’s economy by creating
jobs and helping to drive Victoria’s
economy forward. Job growth in
the startup sector was 11% in
comparison to Victoria’s economy
as a whole at 3.1% over the last 3
years, Dealroom.co’s report
showed.”
Dr Kate Cornick
CEO
LaunchVic
Page / 51 Source: Dealroom.co
“In 2020 the Victorian Government invested
Combined enterprise value of startups created
$110.5 million via LaunchVic to activate since 1990 in Victoria (incl Melbourne)
early-stage startup investments; support
programs that grow more scaleups; and drive
$45B
awareness and advocacy for the local startup
sector. The work that is underway in Victoria
with regard to early-stage investment is
foundational and will dramatically alter the
startup ecosystem in the next 5 to 10 years.
$15B
$29B
“As Victoria’s startup agency, LaunchVic’s
$10B
experience of the sector is one that harbours a
culture of giving back and knowledge sharing. $6B
$3B
“Many of the 18 unicorns and their founders
$2B
that have been created in Melbourne, $1B
Australia in the last 10 years are generous
$825M
with their time and experience. This culture of $641M
$654M
collaboration and a united vision for success is $367M
undoubtedly making our startup ecosystem
stronger.”
10 11 12 13 14 15 16 17 18 19 20 21
20 20 20 20 20 20 20 20 20 20 20 20
» Explore Victoria’s Tech ecosystem
 Latin America
VC investment
€8B €7.7B

+5.5x
€6B

Mexico City / Mexico

€4B

€2B €1.4B Bogotá / Colombia

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Belo Horizonte / Brazil
Enterprise value (companies founded after 1990)
€246B
€250B
São Paulo / Brazil
€200B

€150B

€100B Curitiba / Brazil

€50B
Montevideo / Uruguay
2010 2012 2014 2016 2018 2020 2021

Page/ /5252
Page Source: Dealroom.co
 Middle East and North Africa
VC investment
€8B
Turkey / Israel / Tel-Aviv €7B
Istanbul +2.6x
€6B

€4B

€3B
€2B

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990)

€300B €275B

€200B

€100B

Egypt / Cairo Saudi Arabia / Riyadh UAE / Dubai

2010 2012 2014 2016 2018 2020 2021

Page / 53 Source: Dealroom.co

 Sub-saharan Africa Ghana Nigeria
VC investment

€800M €785M
+3.2x

€600M

€400M

€245M
€200M

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990)

€25B
€21B

€20B

€15B

€10B
South Africa

€5B

2010 2012 2014 2016 2018 2020 2021

Page/ /5454
Page Source: Dealroom.co
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