Location, location, location.
Traditionally, location was a real estate mantra. The better the location, the higher the property value would have been in the eyes of the buyer. In the startup world, location plays an extremely important role in success. A high concentration of startups in a specific location can be translated, most of the time, with a high number of investors, talents, and opportunities to grow. At the same time, having a high number of startups around yours means high competition to attract any of the above-mentioned advantages.
Can We Predict Patterns Associated With Startup Location?
The below infographic provided by Crozdesk analyses 19,188 currently operating SaaS, PaaS, Iaas, and enterprise software companies, as well as 20,883 funding rounds to determine whether the location is directly related to development patterns on a regional level.
As for other industries, the US is without any doubts the region with the most startups holding the highest investment value. Europe is in the second place, but startups in this region are very far away from the US counterparts.
What Are The 5 Top Startup Locations Worldwide?
Silicon Valley gets the gold medal. The concentration of startups and fundings in the area is the highest worldwide with 16.14% of startup concentration and 38.68% of total funding worldwide. Following, there are New York, Southern California, Boston Area, and finally one European city, London.
It’s important to notice that the report, in some cases, has clustered different cities under one single area, considering their geographical proximity.
The full SaaS and Cloud Startup Report 2018, can be found here.