The 20 Best Startup Cities in the World

From San Francisco to Singapore, Angels Partners summarizes the latest data on the best cities to build a startup 

Picture this, half way through cooking a particularly intricate meal you realize you’re lacking some pretty major ingredients. We’ve all been there (perhaps, most of us). That super delicious dish just didn’t quite make the cut. Well, when it comes to building a business, there are also certain ingredients that you really don’t want to miss out on either. Having the right resources can be a game changer for startups - that’s why building a business within a good startup ecosystem, with all the necessary ingredients, could lead to “bake” or break. 

What makes a good startup ecosystem?

Let's start with the basics; what is a startup ecosystem? In short, a startup ecosystem is an interconnected network of different parties, such as entrepreneurs, investors, government bodies and university institutions, located in a specific geographic area (usually defined as 100 km). The best example, and one that most of us know, is Silicon Valley, however, there are many, many more. But what makes a good startup ecosystem and why are some cities better for building startups than others? 

Essentially, a good startup ecosystem will contain vital shared resources for promoting innovation, competition, and growth, such as: 

• Capital - Access to investor funding is a key component of successful startup ecosystems that leads to rapid scaling for businesses. 
• Expertise - Investors and startup accelerators are not just financial aids, but often bring immense knowledge, advising founders on the direction and management of the business.
• Supportive policy frameworks - Innovative regulations allow for innovative business to develop. Understanding the legislation of the city where you build your startup is crucial as it can either help or hinder the process.
• Talented entrepreneurs - If you want a business to grow, the people behind the product have got to be skilled, particularly in areas such as business development and technology. 
• Networking for collaboration - As expected, these hotspots of resources are usually located in or around cities, fostering a rich landscape of resources and opportunities. Most successful startup ecosystems promote a culture of collaboration, in which networking and collaboration is encouraged.

What is the best country to start a startup in?

We’ve got to grips with what makes a startup city successful, but where are these dynamic places situated? Choosing the right country to build a startup is an important factor to consider, since there is no one size fits all. Elements, such as the type of industry, government legislation, specific talent and expertise, access to capital and networks will influence which country is optimal for your startup. In general, for tech-focused startups, the USA, Israel, China and India are good choices, whereas countries in Europe, such as the UK, France and Germany promote innovative businesses for international markets. 

Ultimately, choosing the right city, and by extension, the right country, for your startup is a very unique process. That's why, here at Angels Partners, we’ve extracted and listed the top 20 cities to build a startup, based on these different factors.

Which is the best city to start a business in the world?

With an estimated 137,000 startups launched daily (crazy, I know!) businesses are formed in cities all across the world. But which city is the best to start a business? Let’s take a closer look together: 

1. San Francisco Bay Area, USA - It's no surprise that San Francisco remains the leader of startup cities. According to Visual Capitalist, having raised $427.6 billion from 2017-2023 and fostering the creation of 11,812 startups in 2023 alone (proportional to 20% of the total startups in America), San Francisco is miles ahead of other cities.
2. New York, USA - Maintaining its position in second for yet another year, New York remains a big player for startup cities, raising $179 billion between 2017 and 2023, however, it’s still significantly behind San Francisco.
3. London - UK - Despite Brexit and a turbulent few years post pandemic, London has maintained its position in 3rd, reinstating its importance and dominance in business and innovation.
4. Los Angeles, USA - Birthplace to a wide variety of industries and sectors, such as biotech, entertainment and fashion, Los Angeles has also maintained its position as a key city in the startup-sphere.
5. Boston Area, USA - Home to a handful of the most prestigious universities in the world, such as Harvard and MIT, Boston’s position as a successful startup ecosystem is fueled by highly skilled graduates and innovative research.
6. Beijing, China - With the parent company of TikTok, ByteDance, based in Beijing, this giant startup city has kept its position at number six.
7. Shanghai, China - Despite being the seventh best city to build a Startup and second highest in China, Shanghai is still trailing significantly behind the top six, who sit comfortably ahead of other major cities.
8. Bangalore, India - The “Silicon Valley of India”, climbing to its current position back in 2022, Bangalore has maintained its strong hold in the top 10 as an emerging startup city, due to its skilled workforce and collaborative ecosystem.
9. Tel Aviv, Israel - Once referred to as the “Startup Nation”, Israel’s Tel Aviv is home to a dense concentration of startups, with highly skilled experts and an abundance of capital, making it ideal for startups to blossom.
10. Paris, France - With its highly educated workforce from renowned universities, like École Polytechnique and the Sorbonne and its strategic geographic location in Europe, Paris is considered a good choice for startups.
    
11. New Delhi, India - Getting closer and closer each year to the top 10, New Delhi has climbed seven places since 2020, demonstrating its strength as a startup city.
12. Seattle, USA - Home to some of the tech giants, Amazon and Microsoft, Seattle is also home to accelerators, such as Techstars, enriching and supporting the startup ecosystem.
13. Berlin, Germany - With the cost of living more affordable than other European cities, like Paris or London, yet access to the European market with strong network connections, Berlin is an attractive city for entrepreneurs.
14. Tokyo-Yokohama Area - Japan’s capital city boasts many appealing factors for startups, including a large affluent consumer market that's primed for innovative technologies, access to capital and a skilled population.
15. Chicago, USA - As a central US city, Chicago is primed to access both the east and west coast, appealing to startups requiring shipping and distribution logistics.
16. Singapore City, Singapore - Since 2020, Singapore has climbed an impressive 16 spots to arrive at 16th place in 2024. In fact, Singapore has the highest VC funding per capita in the world. According to Visual Capitalist, VC funding in 2023 was equal to $1,060 per person in Singapore, compared to $345 per person in the USA.
17. Austin, USA - A hub for tech giants, such as Google and Apple, the “Silicon Hills”, as Austin is known by, promotes all the key assets for innovative and emerging technologies, including AI and cybersecurity.
18. Shenzhen, China - Known as the world's manufacturing center, Shenzhen provides effective logistical services, as well as impressive manufacturing resources.
19. Washington DC Area, USA - Located in the heart of regulatory affairs for the US, Washington DC is an excellent startup city for defense, security and health tech sectors that are influenced by policymakers and legislation.
20. Mumbai, India - Having jumped five positions in just one year, Mumbai represents the biggest improvement for the top 20 startup cities in 2024, in part due to the immense wealth in the city.

Whether you're building the latest tech gadget, or hoping to break the international market in healthcare or fashion, choosing the right startup ecosystem is crucial. Take time to learn about the different qualities and amenities a startup city can offer before committing - it may make all the difference!