A richly connected network of founders, venture capital firms, and tech talent are some of the key ingredients driving a startup ecosystem.
As engines of growth, these tech clusters are evolving on a global scale. While the world’s leading startup cities are concentrated in America, several ecosystems, such as Beijing and Seoul, are growing in prominence as countries focus on technological advancement to spur innovation.
This graphic shows the best startup cities worldwide, based on data from Pitchbook.
The Global Startup Ecosystem Rankings
To determine the rankings, each city was analyzed based on the scale and maturity of its startup ecosystem over six years ending in the second quarter of 2023.
Among the inputs analyzed and used to calculate the overall development score were fundraising activity, venture capital deals, and exit value:
| Rank | City | Development Score | Capital Raised | Deal Count | Exit Value |
| 1 | US San Francisco | 90 | $427.6B | 19,898 | $766.3B |
| 2 | US New York | 76 | $179.9B | 13,594 | $171.7B |
| 3 | CN Beijing | 76 | $161.2B | 8,835 | $279.2B |
| 4 | CN Shanghai | 73 | $130.3B | 7,422 | $186.8B |
| 5 | US Los Angeles | 71 | $144.68 | 9,781 | $181.4B |
| 6 | US Boston | 70 | $117.0B | 6,044 | $172.8B |
| 7 | GB London | 64 | $99.08 | 11,533 | $71.9B |
| 8 | CN Shenzhen | 63 | $46.4B | 5,020 | $66.3B |
| 9 | KR Seoul | 61 | $31.1B | 6,196 | $71.0B |
| 10 | JP Tokyo | 60 | $26.2B | 5,590 | $28.0B |
| 11 | CN Hangzhou | 59 | $50.7B | 3,361 | $88.7B |
| 12 | US Washington D.C. | 55 | $43.7B | 2,706 | $28.2B |
| 13 | US Seattle | 54 | $31.78 | 2,693 | $35.6B |
| 14 | SG Singapore | 52 | $45.7B | 4,507 | $38.08 |
| 15 | US San Diego | 52 | $33.58 | 2,023 | $44.7B |
| 16 | US Austin | 52 | $26.4B | 2,636 | $22.9B |
| 17 | CN Guangzhou | 52 | $24.7B | 1,700 | $24.08 |
| 18 | IL Tel Aviv | 51 | $21.08 | 1,936 | $32.2B |
| 19 | US Denver | 51 | $26.8B | 2,489 | $29.98 |
| 20 | DE Berlin | 50 | $31.2B | 2,469 | $15.98 |
San Francisco: The Undisputed Leader
San Francisco dominates the pack, with $427.6 billion in capital raised over the six-year period. Despite a challenging funding environment, nearly 20,000 deals closed, highlighting its outsized role in launching tech startups. Both OpenAI and rival Anthropic are headquartered in the city, thanks to its broad pool of tech talent and venture capital firms. Overall, 11,812 startups were based in the San Francisco Bay Area in 2023, equal to about 20% of startups in America.
New York City: A Close Contender
Falling next in line is New York City, which raised $179.9 billion over the same time period. Crypto firm Gemini and machine learning company, Hugging Face, are two examples of startups based in the city. New York’s diverse economy and vast market make it an attractive destination for startups across various sectors, including fintech, media, and health tech.
Beijing: Leading the Charge in Asia
As the top-ranking hub outside of America, Beijing is home to TikTok’s parent company, ByteDance, which is one of the most valuable private companies in the world. In recent years, much of the startup funding in China has been driven by government-backed funds. In particular, these funds are focusing heavily on “hard tech” such as semiconductor-makers and electric vehicle companies that align with the government’s strategic long-term goals.
Singapore: A Southeast Asian Powerhouse
Another leading tech hub, Singapore, has the highest venture capital funding per capita worldwide. In 2023, this was equal to an impressive $1,060 in venture funding per person. By comparison, venture funding was $345 per person in the U.S., the second-highest globally. Singapore’s strategic location, business-friendly environment, and excellent infrastructure make it a prime destination for startups.
Berlin: Europe’s Innovator
Berlin rounds out the top 20, known for its affordable living costs, vibrant culture, and supportive infrastructure. The city’s startup scene is characterized by a strong sense of community and collaboration. Berlin is particularly known for its expertise in e-commerce, mobility, and deep tech. Government support and a growing number of accelerators and incubators also bolster Berlin’s position as a top startup city.
Conclusion
The top startup cities around the world each offer unique advantages that attract entrepreneurs and foster innovation. From the tech giants of Silicon Valley to the vibrant communities of Beijing and Tel Aviv, these cities provide the necessary ingredients for startups to thrive. As the global economy continues to evolve, these startup hubs will play a crucial role in shaping the future of business and technology.