Digital startups are no longer coalescing around Silicon Valley, they’ve spread globally to Europe and Asia, allowing for a lot more choice on where entrepreneurs plant their next chance at a billion-dollar buyout. While it seems the Valley is still king many other cities provide surprising advantages and interesting demographics. For instance established startups that are in the scaling stage of business can raise 27 percent more money in New York than in the Valley, and those in London can raise 30 percent more money than those on the West coast. Also New York City has double the number of female founders compared with the Valley and London.
Such insights come from young entrepreneurs who decided to analyze data from 16,000 startups to compare the global digital hot spots for business. Some of the findings from the project—called Startup Genome—are below. Overall takeaways appear to be that Silicon Valley is still by far the leader in startups but that New York and London startups appear to be more conservative and thoughtful in their business strategies.
Here's a curated list from a longer list on TechCrunch:
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.
Startup Throughput: Perhaps unsurprisingly, the Silicon Valley startup ecosystem continues to lead the way, but the gap is growing smaller every year. Silicon Valley’s ecosystem is currently 3-times bigger than New York City, 4.5-times bigger than London, 12.5-times bigger than Berlin, and 38-times larger than Boulder.
Product Types: Compared to New York entrepreneurs, Silicon Valley entrepreneurs are 2-times more likely to build games, 50 percent less likely to build marketplaces, 23 percent more likely to be build social networks, 3.5-times more likely to be build infrastructure and 2.5-times less likely to be build financial tools. Compared to entrepreneurs in Silicon Valley, London entrepreneurs are 50 percent more likely to be build eCommerce products, 35 percent less likely to be build social products, 3.5-times less likely to be build products based on user-generated content and 2-times more likely to be build project management software.
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.
Market Size: Entrepreneurs in Silicon Valley are much more “ambitious” than entrepreneurs in New York City and London. Silicon Valley entrepreneurs are 22% more likely to estimate their market size as greater than 10 billion compared to New York City entrepreneurs and 120% more likely than entrepreneurs in London. They are also almost 2x less likely to estimate their market size to be less than 100 million.
Founding Team Composition: Silicon Valley founding teams are 34% more likely to be technical heavy than founding teams from NYC. Whereas NYC founding teams are almost 2x as likely to be business heavy than Silicon Valley founding teams.
Founder Education Background: In London most founders have a masters degree, whereas in Silicon Valley and NYC most founders have just an undergraduate degree. But NYC has 2.2x more founders with PhDs than Silicon Valley.
Founder Experience: Silicon Valley founders have on average started almost twice as many startups as founders from NYC and London.
Founder Motivation: Silicon Valley has 30 percent more founders that want to change the world than London or New York. New York has 50 percent more founders that want to make a good living than Silicon Valley or London. London has twice as many founders that want to make a quick flip than Silicon Valley or New York.
And the Startup Genome team also ranked the top cities in the world based on the number of successful startups. Here's the top ten:
Silicon Valley (which includes San Francisco, Paolo Alto, San Jose, Oakland)
New York City
For more information and stats see the project's blog here.