The 10 hottest startup hubs in the world

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1. Silicon Valley and Bay Area, U.S.

Silicon Valley continues to serve as an icon of startup culture for aspiring entrepreneurs from all backgrounds. Here, more than 50% of startups are founded by immigrants and and more than 70% of engineers are also immigrants.

From the report:

Silicon Valley has earned its reputation as the global tech mecca with 14,000 to 19,000 startups and 1.7 to 2.2 million high-tech workers.

It is the home to success stories such as Apple, Google, Facebook, and countless others. Just these three companies combined have a market cap of $1.5 trillion and employ more than 165,000 people worldwide. Silicon Valley’s local and global impact is undeniable.

Performance: 1
Funding: 1
Market Reach: 4
Talent: 1
Startup Experience: 1

2. New York City, U.S.

New York City rose from its #5 rank in the last report and cemented its standing as the most prominent tech ecosystem on the East Coast of the US.

“One of the major reasons for NYC’s growth is that it is the most popular location for startups foreign to the U.S. to open a second office or to move their whole headquarters there,” the report stated. “We noticed that once many startups around the world have a functional, saleable product in their home ecosystem, they look to set up a sales office in NYC versus Silicon Valley in order to gain access to the US Market.”

3. Los Angeles Orange County, US

Snapchat and Tinder are among Los Angeles-Orange County’s success stories.

“The city is estimated to have 200,000 engineers hailing from a variety of talent pools such as the California Institute of Technology,” the report noted.

Performance: 5
Funding: 4
Market Reach: 2
Talent: 10
Startup Experience: 5

4. Boston, US

Boston distinguishes itself from other tech hubs on this list by focusing on life science, biotech, robotic, and pharma-related enterprises, where it is a worldwide leader.

“The city has also been successful at producing enterprise software and big data companies,” the report stated. “Entrepreneurs in Boston generally benefit from a dense network of mentors and supportive organizations such as Bolt, Techstars Boston, Harvard Innovation Lab, and MassChallenge—the latter claiming to be the largest startup accelerator in the world.”

Performance: 3
Funding: 3
Market Reach: 7
Talent: 12
Startup Experience: 7

5. Tel Aviv, Israel

Compass attributes Tel Aviv’s focus on tech to its proximity to Tel Aviv University and the Israeli Defense Forces. But it also notes that Israel’s performance could benefit from more international talent, which is 40% lower than in Silicon Valley.

Performance: 6
Funding: 5
Market Reach: 13
Talent: 3
Startup Experience: 6

6. London, United Kingdom

London has risen in the ranking since the last report when it was #7. Tech City UK, a government-funded startup initiative, suggests London-based startups alone could make 10,000 jobs in the latter half of 2015.

“The London startup ecosystem stands out for its exceptional access to affluent consumers and powerful corporations, solid funding landscape, and ambitious government initiatives,” the report stated.

Performance: 5
Funding: 12
Market Reach: 3
Talent: 7
Startup Experience: 13

7. Chicago, US

Up from its #10 rank in 2012, Chicago is picking up steam and has between 1,800 to 3,000 active startups.

“A key reason for Chicago’s growth is, without a doubt, the exceptional success of a few local startups,” the report stated. “Chicago is the birthplace of Groupon and GrubHub, and is currently home to over ten unicorns — startups with a valuation over $1 Billion.”

Performance: 8
Funding: 12
Market Reach: 5
Talent: 11
Startup Experience: 14

8. Seattle, US

Local companies like Amazon and Microsoft put Seattle on the map. Although it dropped from its #4 rank in the last report, the tech space here is responsible for about 12% new job growth in the last two years, according to the state’s Employment Security Department.

Performance: 12
Funding: 11
Market Reach: 12
Talent: 4
Startup Experience: 3

9. Berlin, Germany

Berlin’s tech environment ramped up after 2010 and has moved in the rankings since 2012 when it was #15. Here, startups could create as many as 40,000 new jobs by 2020.

“Startups in the Berlin ecosystem have historically been successful in markets like e-Commerce, gaming, and marketplaces, with new startups showing potential in other verticals such as SaaS and adtech,” the report noted. “A strong creative scene and low living costs have resulted in a soaring inflow of national and international tech talent.”

Performance: 7
Funding: 8
Market Reach: 19
Talent: 8
Startup Experience: 8

10. Singapore

Today, Singapore is one of the world’s top financial centers.

The government’s support of the local startup scene has played a large role in its speedy development, according to Compass.

“Singapore’s geographic location and deep business relationships with booming Asian markets means local startups benefit from access to affluent consumers and multinational corporations to scale their business,” the report stated.

Performance: 11
Funding: 9
Market Reach: 9
Talent: 20
Startup Experience: 9