Bengaluru no longer premier startup hub, but why?
Is Bengaluru no more lucrative for start-ups? American research firm Startup Genome in a global startup ecosystem study has ranked Bengaluru at 20th, five places down from its 2015 position. Interestingly, it is the only Indian city to feature in top 20 while Delhi was a 'runner-up'. The report notes Bengaluru startups do command steep valuations, but lags in giving investors an exit route.
Bengaluru has most 'cost-efficient' engineers, but lacks in quality talent
"This indicates that Bangalore either has a bright future as these startups mature or there's trouble at the top of the market with acquisitions," the report said. It notes Bengaluru has strong network with other countries but struggles to attract foreign customers. Talent-wise, Bengaluru's engineers are most 'cost-efficient among the top 20 countries, but the city faces challenges with quality and access of talent.
Experts from 25 countries interviewed, data pooled in for ranking
The study used several factors for ranking: performance (exits, valuations, company's success since the start and growth), funding, talent, market reach and overall experience. Data from Crunchbase, Dealroom and Orb Intelligence were compiled and experts from 25 countries were interviewed to find the final rankings. The first five rank holders are Silicon Valley, New York, London, Beijing and Boston.
