Bengaluru: As per the Global start-up Ecosystem Report (GSER) published by Start-up Genome and released at the ongoing London Tech Week – 2022, Bengaluru has been ranked 22nd in the global start-up ecosystem.
The 10th edition of the GSER – 2022 in partnership with Crunchbase and Global Entrepreneurship Network was released in June, ranking the top 30 and 10 runner-up global ecosystems and the top 100 emerging ecosystems.
According to 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 and investors globally have in Namma Bengaluru’s ecosystem. It is the footprint of development. IT & BT, Science & Technology; Skill Development, Entrepreneurship & Livelihood. The GSER-2022 measures six 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 commercialisation), 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.
Research agency of UK based 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 State 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.
Speaking to NewsKarnataka Large and Medium Scale Industries Minister Murugesh Nirani said, “It is really a proud thing for Kannadigas. In the coming years our Government is planning to secure higher ranking in GSER.”
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.