India ranks fourth globally in scaleups, surpasses UK in total VC investment: Startup Genome Report
By Team Newsable | First Published Sep 25, 2023, 4:11 PM ISTThe United States, China, and the UK are the only nations ahead of India in the ranking. India boasts 429 scaleups with $127 billion in VC investment and a total tech investment value of $446 billion.
India has secured the fourth spot globally when it comes to the number of scaleups, surpassing the UK in total venture capital (VC) investment in these scaleups and cumulative tech value investment, according to the first edition of Startup Genome's Scaleup Report.
The United States, China, and the UK are the only nations ahead of India in the ranking. India boasts 429 scaleups with $127 billion in VC investment and a total tech investment value of $446 billion.
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The report delves into the factors contributing to scaleup success, examining what differentiates startups that reach valuations of $50 million or more within four to eight years from those that do not.
Startup Genome, an innovation policy advisory and research firm, conducted surveys across over 80 cities in more than 40 countries, considering more than 60 metrics in the process.
India stands out with startups that draw over 50% of their customers from outside their continent and exhibit the highest scaleup rate. This is attributed in part to startups customizing their products and services for truly global markets, expanding their potential customer base significantly, beyond national and even continental borders.
In large countries (excluding the US), startups tend to scale faster when they focus on their domestic market due to its substantial size. This trend is particularly evident in India, where B2C startups can achieve unicorn status and billion-dollar exits without expanding internationally.
The report also highlights the impact of local connectedness on startup success. Startups with a high local connectedness index (measuring the size, density, and quality of a startup's local network) are more likely to scale, with a 34% boost in their scaleup rate compared to those with a lower local connectedness index.
Early-stage startups with a higher local connectedness index experience revenue growth twice as fast as those with a lower index. Additionally, startups with greater global connectedness have a 3.2 times higher likelihood of scaling compared to those with lower global connectedness.
Ecosystems closely connected to major global ecosystems, such as Silicon Valley, New York City, and London, see their startups expand internationally at a significantly higher rate (correlating at 66%).
For founders seeking to improve their chances of scaling, the report recommends offering stock options to all employees, cultivating over five global connections to leading ecosystems, and securing at least three advisers for their startup.
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