Bahrain is among the Top 10 in Mena in the Global Startup Ecosystem Report 2024 (#GSER2024), the most extensive data-driven research on startups worldwide with 300+ entrepreneurial innovation ecosystems and 4.5 million startups analysed.
The GSER ranks the Top 40 global ecosystems, including a ranking of emerging ecosystems and an expanded regional ranking. The top five ecosystems in Mena are Tel Aviv, Dubai, Cairo, Riyadh and Abu Dhabi.
Tel Aviv is the only Mena ecosystem ranking in the Top 40 and remains the region’s leading ecosystem, globally moving up one place to #4 (tied with Los Angeles).
Dubai number one in Funding
Dubai scored a 10 out of 10 in the Funding, measuring innovation through early-stage funding and investor’s activity. It has five unicorns, one of 19 emerging ecosystems with four or more unicorns in the last 10 years.
Cairo moved up in the Emerging Ecosystems Ranking from last year’s 51 – 60 range to the 41 - 50 range. It is the #1 Mena Ecosystem in Bang for Buck, measuring the amount of runway tech startups acquire, on average, from a VC round.
Riyadh and Abu Dhabi both moved up in the Emerging Ecosystems Ranking – Riyadh from last year’s 61-70 range to 51-60 and Abu Dhabi from the 81–90 range to the 61-70 range. Abu Dhabi ranks #2 Mena Ecosystem in Performance, measuring the size and performance of an ecosystem based on the accumulated tech startup value created from exits and funding.
Muscat created $313 million in Ecosystem Value from July 01, 2021 to December 31, 2023. Ecosystem Value is a measure of economic impact, calculated as the value of exits and startup valuations.
Sharjah created $424 million in Ecosystem Value from July 01, 2021 to December 31, 2023. Ecosystem Value is a measure of economic impact, calculated as the value of exits and startup valuations. It is the #5 Mena Ecosystem in Bang for Buck, measuring the amount of runway tech startups acquire, on average, from a VC round.
State of the Global Startup Ecosystem
Series A funding amount in 2023 was down 46% from 2022, and the value of large exits ($50 million+) fell 47% over the same period.
Q1 2024 has projected higher Series A funding amount and deal count than Q4 2023, perhaps signalling a modest recovery for early-stage startup funding.
The number of new unicorns in 2023 was down 58% from 2022 and 87% from the 2021 peak. Though the total number is down, China nearly doubled its global share of new unicorns, from 6% in 2022 to 11% in 2023. With 15 unicorns, Silicon Valley again led all ecosystems for the most number of new unicorns in 2023, though this was down 80% from 2022. The Tashkent, Lyon, and Rhineland startup ecosystems welcomed their first unicorns in 2023. In 2023, more than half of new unicorns were in the GenAI and Deep Tech sub-sectors, a higher rate than in 2021.
Late-stage Cleantech startups raised 2.5x more funding in H2 2023 than in H1 2020. The UK, France, and Germany combined overtook the US and China in early-stage Cleantech funding, increasing their Series A funding amount by nearly 50% in 2023 compared to 2021.
GenAI sees surge in funding
Generative AI (GenAI) saw a surge in funding, with nearly 20% of all VC funding in 2023 going to GenAI-focused startups. These startups were primarily concentrated in the US. GenAI VC funding increased 3x in 2023 compared to 2022. Deal counts nearly doubled.
In 2023, the Series A funding amount share for Top 40 ranked GSER 2024 ecosystems was 65%, down from 79% for these ecosystems in 2019. Comparatively, the share of Series A funding amount for the Top 100 Emerging Ecosystems reached 19% in 2023 vs. 13% in 2019.
The 2024 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network was launched at London Tech Week, in collaboration with the Founders Forum, Informa Tech and London & Partners. Presented by Stephan Kuester, Managing Partner at Startup Genome, the GSER analyses data from over 4.5 million companies across 300+ entrepreneurial innovation ecosystems and features rankings that indicate which ecosystems are currently driving innovation and deep knowledge about startup trends around the world.
Decline in global VC funding
Compelling new insights include the notable decline in global VC funding, the sharp decrease in Exit Values, the scarcity of IPOs, the resilience of Cleantech investments, and the surge in Generative AI funding. The report also offers insights into the evolving dynamics of Series A
funding, with a potential modest recovery in early-stage investment observed in Q1 2024.
Top three global ecosystems: Silicon Valley remains at the top, followed by New York City and London tied for #2. Seoul moved up three spots, now ranked #9, entering the Top 10 ecosystems this year. Tokyo has entered the global Top 10 for the first time, marking the most significant improvement among the Top 10 ecosystems.
The top two Chinese ecosystems Beijing and Shanghai, have dropped in the overall rankings to #8 and #11. Shenzhen has shown impressive growth, moving up seven spots to rank #28.
Europe is the most represented region in the Emerging Ecosystems Ranking, with a 42% share in the Top 100 Emerging Ecosystems, followed by North America with 27%.
Madrid moved up 12 ranks, claiming to #1 in the Emerging Ecosystems Ranking. Barcelona moved up two positions in the Emerging Ecosystems Ranking, reaching #2. Jakarta (#6) and Metro Rhein-Ruhr (#9) both entered the Top 10 Emerging Ecosystems Ranking.
Greater Lausanne Region moved up 16 positions, reaching #11 in the Emerging Ecosystems Ranking. Mexico City has shown impressive growth, reaching the 21-30 range in the Emerging Ecosystems Ranking from the 41-50 range in 2023.
Athens has entered the Top 100 Emerging Ecosystems Ranking, reaching the 51-60 range in 2024. Melbourne is ranking as the #32 Global Startup Ecosystem, moving up one spot from GSER 2023. The top five ranking sub-Saharan African Ecosystems are Nairobi, Lagos, Cape Town, Johannesburg, Accra.
Expert advisors
"We persist in our role as expert advisors, dedicated to accelerating entrepreneurship and growth in startup ecosystems and innovation clusters worldwide. The Global Startup Ecosystem Report, as the most comprehensive and data-driven analysis in this domain, serves as the foundation of our mission," said Kuester. "Armed with the right knowledge, we work side by side with entrepreneurs, policymakers, and community leaders globally in demonstrating how innovative technologies can drive exponential economic growth."
“Creating more entrepreneurs is the most important thing that we can do as an ecosystem of enablers and policymakers. Entrepreneurs are naturally attracted to the most important challenges of the day and seek to apply the best ideas and technologies for solutions. The progress we make on these issues in the next decade will determine the success of the next 100 years and beyond. The prize is finding solutions to global needs faster. It is why we stay the course and work day and night to build an environment where ordinary citizens are empowered to become entrepreneurs and to flourish in healthy, advancing ecosystems,” said Jonathan Ortmans, President of the Global Entrepreneurship Network.--TradeArabia News Service
