Earlier this year the Startup Genome project identified what it believed to be the best startup clusters in the world. The Global Startup Ecosystem report is compiled based upon data from over 1 million companies spread across nearly 100 cities around the world. Whilst the US remains the market leader in terms of share of VC investment, there is a clear shift towards Europe and Asia, with China leading the pack.
New research from job platform Jobbatical suggests that London deserves its place in the spotlight however. The research, which was undertaken in partnership with the University of Cambridge and Launchfield, explored a range of factors driving the mobility decisions of top talent, and the factors that drive success in tech and innovation hubs around the world.
The research identified London as the most attractive city for startup founders, with Singapore, Tallinn, Dubai and Berlin rounding out the top 5. It was also identified as the 2nd most important tech and innovation in the hub, behind only Singapore.
This was part of a wider trend towards Europe being a popular destination for startup founders. Fully 48% said that the continent would be their prime choice for startup location, which is twice the number that chose North America.
Jobbatical founder and CEO Karoli Hindriks commented, “A welcoming and diverse culture is helping Europe to become a major crossroads for global tech. From Lisbon to London, there has never been a stronger, more developed group of tech and innovation hubs within the continent. There is more work to be done to meet the needs of European tech, but the destinations identified in our research are getting a leg up on attracting global talent thanks to a culture of openness and innovation.”
London’s place cannot be taken for granted however, not least because entrepreneurs regarded ease of doing business and the availability of global networks as the key criteria when choosing a city to locate their business. With a cloud of Brexit-related uncertainty covering the UK, it remains to be seen whether London can continue to offer these things in future.
This is especially worrying given the insistence of the UK government on trying to ‘manage’ immigration levels significantly lower than they are at the moment. Having access to talent is crucial for startup growth, and the authors believe that is one of the key factors behind Europe’s popularity.
“There is little in place by way of policy to support modern ways of working,” Hindriks says. “In order for Europe, including the UK, to continue to develop its tech industry, issues around access must be solved. A review of the visa process, in particular, is a crucial first step, with ideas like Estonia’s Digital Nomad Visa a welcome step in the right direction for the way governments can support tech companies and tech workers.”
