Startup Genome has launched its’ 2020 Global Startup Ecosystem Report in collaboration with Helsinki Business Hub. Greater Helsinki is ranking as #4 Emerging Startup Ecosystem Globally in 2020. Greater Helsinki shows a positive trend, especially in talent and funding.
The 2020 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network is launched today. The GSER is the world’s most comprehensive and widely-read research on startups with 250 ecosystems studied, a ranking of the top 30 and 10 runner up global ecosystems, and a top 100 ranking of emerging ecosystems.
Helsinki Business Hub engaged Startup Genome to benchmark Greater Helsinki’s performance against more than 250 ecosystems globally. Even Helsinki is smaller than many of its competitors, the study proved again that the strengths of Helsinki do make a difference in international comparison. Helsinki was ranked 4 in the emerging ecosystem rankings for 2020 and was specially recognized in the funding and talent categories. When comparing the ecosystems around the world Helsinki shows a good trend in the cumulative growth of top developers. Quantity of talented coders available and how the amount of talent increases over time is critical to ecosystems. This reflects the growing potential in terms of knowledge, contribution, and expertise in ecosystems.
According to the report the Greater Helsinki created $5.8 billion in Ecosystem Value with $511 million in total early-stage funding over the last 2.5 years. The sub-sectors that Helsinki is performing well include AI, Big Data & Analytics, Gaming & Digital Health.
Covid-19 is changing the scene
As the COVID-19 crisis hit across the world, startups have found themselves in a double bind, being hit hard from two main shockwaves: capital shock and demand. According to the Startup Genome Report, four out of every 10 startups today are facing hard times, they have three months or fewer of the capital runway. In addition, the fundraising process has been dramatically disrupted and total VC funding has dropped significantly across every single continent. Globally, it is down by 20% in the three months of 2020. About 72% of startups saw their revenue drop since the beginning of the crisis, and over 60% of startups have laid off employees or reduced salaries.
“This is the time for policymakers, community leaders, and foundations to double down on their support of local startups — the #1 engine of job creation and economic growth,” says JF Gauthier, Founder & CEO of Startup Genome. “The Global Startup Ecosystem Report is the foundation of global knowledge where we, as a network, come together to identify what policies actually produce economic impact and in what context.”
However, the news is not all gloomy: Every crisis creates opportunities, and this crisis is no different. For instance a survey conducted by Health Capital Helsinki project covid-19 has had a positive impact on Finnish companies with health tech solutions. The time will show how many success stories are born during the COVID-19 crisis. Helsinki at least believes that when we work together and trust our strengths, we will recover this crisis and build an even better future.
”Even in times of crisis, Helsinki continues to be a functional, safe, and sustainable city. We work with the local community to help startups survive and rebound. In a post-corona world, our ability to offer a relatively safe and stable investment ecosystem, transparent and open governance, and a highly-skilled workforce will make a difference. Capital will move towards clusters of innovation, inspiration, and capabilities.”, says Jan Vapaavuori, the Mayor of Helsinki