Silicon Alley Closes 2015 On Top In A Boom Year For Startups
For three out of four quarters in 2015, New York City’s tech ecosystem has led with more startup funding requests than any other region in the country, including California’s long reigning Silicon Valley. After a dip in Q3, New York rebounded in Q4 claiming nearly 20% of every funding application around the country. California ranked second with 17.8% of total applications, while Florida produced a healthy 13.3%. New to the top 10 states in Q4 are Georgia, which saw a 251% increase in applications over the previous quarter, and the nation’s capital region, with Virginia claiming 3.4% and Washington DC claiming 2.3%. Overall, 2015 closed out strong with a 21% jump in total funding applications over the previous quarter and a 61% increase compared to Q4 2014.
Over the last year Silicon Alley has had the benefit of Mayor Bill de Blasio’s Digital.NYC platform, a centralized online hub tying together the entirety of New York City’s tech ecosystem, providing visitors with the information and resources that can help turn ideas into businesses. The City’s digital ecosystem supports more than 300,000 tech jobs and an additional 250,000 supporting jobs. By the first year anniversary of the hub in October, more than 1 million visits had been tracked from more than 785,000 unique visitors. Digital.NYC was credited by Accenture as a key reason for ranking New York City as the world’s #1 innovation region. New York City’s hub has since served as a model for Boston with Starthub, and across the pond with Tech.London.
Despite a more than 20% growth in startup funding applications over the first quarter, on the international level the United States reported for the first time just slightly less than 50% of total global funding applications, down from 58.9% in Q3 and 62.5% in Q2 2015. The top players continue to grow at a rapid rate, with India’s startup growth jumping 70% for a global share of 11.6%, and France jumping 94% for a global share of 4.9%. The top 5 remained the same, with Canada and Brazil coming in fourth and fifth place with 4.4% and 3.8% respectively. However, new to the top 10 and a first appearance for 2015 was Russia, with 2% of total funding applications. Spain also returned to the top 10 since Q2, doubling its percentage to 2.4% compared to the beginning of the year. The UK at 3.5%, Ukraine at 3.5%, and Australia at 1.7%, rounded out the rest of the top 10 countries.
Applications from companies already generating revenue spiked this quarter with a 40% increase after a sharp decline in Q3. Additionally, for the first time this year, funding applications from startups that are Full Product Ready beat out those In Development to claim the top spot at 44.7%. Consumer Product & Services and Internet Web Services remained the two most active industries for startups across the globe. Business Products & Services, which was nowhere to be found among the top 10 in Q3, broke into the top 5 with 7.8% of total funding applications. Entertainment and Healthcare startups maintained a healthy presence in the top 5 with 9.9% and 8.2% respectively.
The growth in funding applications year over year points to a promising 2016 for the global early-stage ecosystem. As more startups and angel investors connect through an increasing number of funding and collaboration platforms, we can expect to see a continued increase in total funding applications.
This post originally appeared in Forbes.
Written by David S. Rose
You might also be interested in
Gust announces acquisitions of Sharewave and Preferred Return; creates the most robust and affordable equity management solution for early-stage startups.
June 22, 2016 – NEW YORK, NY – Gust, the global service provider powering the entrepreneurial ecosystem, announced today the launch of a comprehensive equity management platform, Gust Equity Management. The new platform provides early-stage companies with powerful
In some ways, it is now difficult to imagine a world without accelerators. Many of the globe’s most well-known and disruptive startups were propelled from the hallways of legendary accelerators such as Y Combinator, TechStars, and 500 Startups. AirBnb, Dropbox, Zenefits, Stripe, DigitalOcean, Heroku, Optimizely, Intercom, Reddit, and hundreds of other startup success stories were all briskly brought to life
The Market Diversifies: International Innovation Captures Larger Share Of Startup Funding Applications
In Q3 the global startup ecosystem continued to thrive, with 25% growth over the same quarter last year and up 18% from last quarter, as the innovation economy expands around the world. Quarterly data from Gust, the online platform for the global angel investment industry, reveals that while incumbent leaders show no sign of slowing down, new industries and areas
2015 is shaping up to be a strong year for the startup and early stage investor ecosystem. Total startup funding applications are up across the globe and in multiple sectors, especially in the United States where the surging New York City tech industry is leading a nationwide growth in new startups.
Coming out of the second quarter of the year, the total
Today, Gust is proud to join the U.S. Department of State and several other private sector partners to launch The GIST Network (GIST Net), an interactive online network connecting science and technology entrepreneurs in emerging economies. GIST Net will provide entrepreneurs with the resources and mentorship they need to collaborate, seek funding, and grow their businesses.
This public-private partnership is