The startup boom of the past decade is still very much in full swing, although its precise locations around the world are constantly changing. Numerous countries around the world have recognized the importance of startup culture and the entrepreneurial activity to their local economies, providing numerous benefits and creating a positive environment for startup development. Here is an overview of countries around the world providing the best framework for startup development. Even though they are the leading nations in terms of startup ecosystems, we are omitting The United States and the United Kingdom in favor of other, less obvious countries around the world.
With more than a 1,000 startups established in 2017 alone, India has solidified its standing as the world’s third-largest startup ecosystem. The cities of Bangalore, New Delhi and Mumbai are still the centers of India’s startup boom, but recent trends show an expansion onto other cities, with about 20% of total Indian startups emerging outside of major cities.
India is firmly in the sights of all major global investors and angel groups, with the total funding for Indian tech companies reaching $9.6 billion throughout the first three quarters of 2017. The Indian government has done its share in stimulating the startup growth, launching a $1.5 billion startup fund in 2016 and pushing through a number of tax benefits for startups and their investors.
The ever-so-pedantic Germans have established a healthy startup ecosystem that’s growing by the year. 2017 has been a banner year for German startups, with the total amount of investments reaching €4,3 billion, almost doubling the sum of €2,3 billion from the previous year.
The interesting thing about Germany’s startup scene is that it is greatly decentralized, with startup hubs spread all across the country, and not just around several major cities. Still, Berlin, Munich, and Hamburg – the three traditional business motors of the country – are the largest startup cities in Germany and among the largest in all of Europe. Another benefit of establishing a startup in Germany is the relatively low priced office space in the above mentioned major cities. The German government has responded to the growing trends by establishing a program that will invest €2 billion in startups over the course of ten years.
The Eastern European country earns the place on a list not for the total number of startups or the volume of investment, but for its emergence as the region’s tech hub and a clear intention by the government to further boost the startup growth with a number of measures implemented to create a favorable ecosystem.
Starting in 2017, the government has passed a number of regulations encouraging foreign investment and starting companies on Hungary’s soil. From tax exemptions to government funds, the country has embraced the startup culture as a way forward.
Additionally, Hungary is one of the most favorable countries for business immigration. The current Hungarian business immigration plan offers a plethora of benefits for entrepreneurs looking for business residency or citizenship in the country.
Even in the conditions of chronic political and economic instability of recent years, the Brazilian startup scene has continued to grow and develop to become the leading entrepreneurial nation in South America. The annual volume of startup investments routinely exceeds $1 billion, and the country’s tech sector has scored the 10th highest rate of growth in the whole world.
There are numerous government programs that provide funds for startups, and private investment funds are also actively looking to jump on the expanding Brazilian startup bandwagon. With a number of Brazilian startups aiming at global expansion, the investors’ attention will be firmly placed on South America’s tech leader.
The smallest country on our list also boasts some of the most impressive entrepreneurial numbers. Aided by government’s innovative policies and a phenomenal startup environment, Singapore has overtaken Silicon Valley as the world’s main draw for startup talent.
The government has gone to great lengths to subsidize startups, and investors are very active in Southeast Asia’s leading tech country. In 2017, Singapore startups have seen a total volume of investments of $1,2 billion and accounted for more than 70% of total investments in the region. And with predictions showing a strong intent for global expansion among Singapore’s startups, the country’s startup growth is bound to continue.