Bengaluru has found itself a distinct place on the global startup tech map as the leading Asian city is now ranked fifth for tech venture capital investment in 2022, a report showed on Tuesday. According to the latest ‘Global Startup Ecosystem’ report from innovation policy advisory and research firm Startup Genome, tech firms in Bengaluru have raised $7.5 billion in tech venture capital investment so far in 2022 — more than any other year previously.
San Francisco Bay Area tops the list, followed by New York, London, Greater Boston, and Bengaluru. Bengaluru currently has a tech ecosystem value of $105 billion — higher than Singapore ($89 billion) and Tokyo ($62 billion).
“This research demonstrates that London and Bengaluru are not just the leading startup hubs in Europe and Asia but they are also competitive on the global stage. Its fantastic to see startup growth across the whole of India as this creates lots of opportunities for collaboration with London,” said Hemin Bharucha, Director of India for London and Partners, a business growth agency.
The Asian tech startup community is going through a massive transformation and India has made a powerful mark on the world’s global startup ecosystem. Bengaluru, aptly named as the “Silicon Valley of India”, is now attracting more investment than other global hubs like Singapore, Paris and Berlin and is trailing closer behind Greater Boston ($8.9 billion investment in the first five months of this year) and London ($11.3 billion).
The ecosystem once dominated by Beijing, Singapore, Hong Kong and Korea is now being considerably disrupted by Indian cities like Bengaluru, Mumbai, Hyderabd, and Delhi. Bengaluru ranked 22nd in the startup ecosystem globally due to major improvements in its market reach and Delhi moved up an impressive 11 places, coming in at 26, with Mumbai at 36.
“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 $55.7 million Series D for Ather Energy and Swiggy’s $700 million round in January.
The findings also established London as the startup hotbed for Indian entrepreneurs. According to London and Partners, London is the number one European city for Indian companies looking to expand outside of their home market and second only to Dubai for the number of foreign direct investment projects from India in the past five years (2017-2021).
“London is the undisputed tech and innovation capital of Europe, and this independent report demonstrates that our start-up ecosystem is also one of the most diverse and vibrant in the world,” said Sadiq Khan, Mayor of London, during the ‘London Tech Week’.
“The performance of the London startup ecosystem, climbing from #7 in 2012 to #2 for the last 3 years, demonstrates its strength as a leading startup hub. It is the community with the highest Global Connectedness after Silicon Valley and the best place in Europe to scale a tech business to global category leadership,” added J.F. Gauthier, Founder and CEO, Startup Genome.