These hubs create a vibrant ecosystem for startup founders.
Free Preview: Start Your Own Business
Submit your email below to get an exclusive glimpse of Chapter 3: “Good Idea! How Do I Know If I Have a Great Idea for a Business?
4 min read
Opinions expressed by Entrepreneur contributors are their own.
While Silicon Valley is the historic center of technological innovation, we’re now seeing the development of innovation hubs around the world. These hubs create a vibrant ecosystem for startup founders and an environment that encourages collaboration and information sharing among entrepreneurs, corporations and venture capital investors. The resulting surge in innovation does a great deal to boost a region’s economy and encourage the next generation of creative entrepreneurs.
Silicon Valley — named because of the silicon-based processors and transistors originally manufactured in the area — started this innovation trend. It’s still home to countless startups, major corporations, investors, and universities as well as startup incubators and accelerators. According to Pitchbook, the U.S. raised over $156 billion in venture capital during 2020. While I expect Silicon Valley to remain a strong center of startup innovation, the Covid-19 pandemic — not to mention the traffic and high living expenses in the Bay Area — has driven more people to relocate across the country and the world.
Beyond Silicon Valley, we’ve seen rapid startup growth in various U.S. cities including New York, Los Angeles, Boston, Seattle and Austin among others. According to KPMG, the top factors that are important for a tech hub are modern infrastructure, an urban locale, at least one research-intensive university, investment funding and available talent. New York, sometimes called “Silicon Alley,” is known for its blockchain expertise and for being a telecommunications hub. Microsoft developed a software culture in Seattle that resulted in an array of software startups. And Politico reports that Oracle, Hewlett-Packard and Elon Musk have all relocated to Texas recently.
Around the globe, increasing influential innovation hubs include Tel Aviv, which known for its artificial intelligence, mobility, and cybersecurity expertise; London, regarded as a FinTech center; Stockholm, known for producing unicorns; Finland, ranking second in capital investments per capital according to TechGenyz; and Tokyo, where corporations are banking on startup investments to bring outside innovation inside.
Organizations and events are often the catalysts that encourage the startup ecosystem in any given market. Here are a notable few:
- Startup Grind is a global network for startups, corporation and investors with a strong presence in Silicon Valley — where it hosts a global annual conference — and in local markets around the world.
- Adeo Ressi started the Founders Institute, a pre-seed startup accelerator program, in 2009 and he’s working to empower a network of entrepreneurs around the world.
- MOX is a mobile-only accelerator serving mobile Internet users. It’s part of SOSV, an accelerator VC, and helps startups succeed through its network of partners, mentors and investors in markets including Asia, Europe, the Middle East and South America.
- Web Summit, hosted in Portugal and organized by a company in Ireland, has become one of the most highly regarded gathering places for startups, corporations, and investors.
Competition also plays a role in spurring innovation globally. The Startup World Cup has grown rapidly with 60+ regional competitions around the world. Each regional competition attracts local entrepreneurs, and the regional winners are selected to compete in the grand finale event. There, the winner receives a $1 million investment prize. Entrepreneurs who participate benefit from being part of a strong network of startups, corporations and investors who are part of the Startup World Cup ecosystem. Corporations who attend can discover partner with startups to enhance their own success.
As we emerge from the pandemic, it’s exciting to discover which global innovation hubs will develop next. Most people have their own creative ideas, and I encourage budding entrepreneurs to pursue their dreams and see how they can have a positive impact on the world.