London leads Europe but lags behind US as tech start up base, says survey

town hall and tower bridgeLondon emerges as Europe’s leading tech start-up hub but Silicon Roundabout is still well behind Silicon Valley, according to a survey by a business software company.

The Global Start Up Ecosystem Ranking looked at 5 measurements for a successful start-up hub – performance, funding, talent, market reach and the start-up experience. Compass, a company that sells tools for automated management reports and benchmarking carried out the survey following on from a similar study in 2012.

11,000 people in the start-up sector took part and Compass additionally conducted 200 interviews in 25 countries.

The rankings were dominated by the US with the top 4 places and 6 in the top 10. London ranked in 6th place, up one position from the last such ranking in 2012. Berlin is hot on its heels for the crown of leading European city jumping 6 places to 9th.

 

Global Start Up Econ-System Ranking 2015
Ranking Location Performance Funding Talent Market Reach Experience
1 Silicon Valley 1 1 4 1 1
2 New York 2 2 1 9 4
3 Los Angeles 4 4 2 10 5
4 Boston 3 3 7 12 7
5 Tel Aviv 6 5 13 3 6
6 London 5 10 3 7 13
7 Chicago 8 12 5 11 14
8 Seattle 12 11 12 4 3
9 Berlin 7 8 19 8 8
10 Singapore 11 9 9 20 9

The fatal flaw in the survey rankings and one that would inevitably knock London down the list is that China, Japan, South Korea and Taiwan are not included. Compass says that is was unable to get adequate survey participation or data. It would expect to see Beijing in the top 5.

The survey shows that London scored best for availability and cost of technical talent. It also did well in measurement of performance. The survey says that exit values on London start-ups have gone up 4-fold in the last 2 years.

The survey produced a few findings that may have particular relevance for London as a global capital. 27% of start-ups have investors from abroad, and 29% of people working in start-ups were foreigners to their chosen city.

There was a lack of gender equality in all locations. 18% of start-up have female founders compared to 10% in the survey done in 2012. Separate research, previously reported by Urbs, suggests that this in one area where London is doing better than Silicon Valley.

Source – Compass Global Startup Ecosystem Ranking

See also

London wins plaudits for support of tech sector growth.

Tech start ups more diverse than Silicon Valley but women struggle for funding

People good, infrastructure less so – what foreign business thinks of London