So many startups are coming up all over the world every day. However, the crucial things required for a startup such as funding, mentorship, networking, and a platform to showcase ideas and a vibrant community of technology evangelists are available only in a handful of cites. If you are a young tech upstart, the three best cities to start a business are as follows.
Silicon Valley, United States of America:
The United States of America has been the fore-runner of tech innovation for decades. It provides a unique combination of angel investors; venture capitalists which are very much essential for a tech startup in its early stage. The total number of startups in United States exceeds 19000. It is home to the high tech innovative ventures such as Facebook, Google, and Microsoft etc. The presence of these tech giants helps in bringing faster exit for startups. Also the U.S is among the top countries in the world in terms of the ease of doing business.
Tech startups can also find mentorship and startup acceleration programs which are tailor-made for individual startups. Emerging startups in healthcare, life sciences, autonomous systems, drones can leverage the university-industry collaboration such as university innovation labs. The United States also boasts the presence of Top 8 universities in the world such as Stanford, Harvard, MIT etc. hence it is advisable for startups to have their headquarters in the Silicon valley and have regional offices in other countries to take advantage of the cheap and high quality labour available
Tel Aviv, Israel:
Tel Aviv is a unique combination of entrepreneurial spirit and a government guided economy.This uniqueness of Tel Aviv is exemplified by the fact that it has now more than 4,200 startups on various technologies such as Artificial intelligence, Machine learning, Big data etc. Israel has one of the top ranked universities i.e. the Tel Aviv University, and the country has fostered a culture of innovation through its policies and the mandatory military service produces brilliant talents who are motivated, self-starters, audacious and at the same time disciplined; as is referred in military terms as “chutzpah”.
Israel also has more open and inclusive immigration policies. Hence it attracts brilliant people from all over the world. Most of the startups in the country have found exits in merger & Acquisitions by Multinational companies. This provides the much needed liquidity and vibrancy in the startup ecosystem. The combination of these factors has given the country incredible growth in startup innovation and hence Israel is rightly called “The Startup Nation”.
The Indian startup ecosystem is considered as one of the fastest growing startup ecosystems in the world. This is primarily because of the efforts by the Indian government to ease the procedure taken to start a business. The country is also growing in digital population with new government initiatives such as digital India, startup India etc. Because of recent reforms like demonetization, implementation of GST, India has improved its ranking in ease of doing business. Also, the Indian economy is pegged to grow at 7-8% annually.
The emerging customer base, increasing reforms towards business friendliness, and the local talent available in the market make it an ideal location for new tech startups. Bangalore has posted high growth of venture capital investments for the last 5 years and India is also an excellent outsourcing center for global companies because of cheap labour and high quality talent. Hence it makes sense for startups to base their second offices in Bangalore during initial product validation phase.