The economic engine of startups: using data to fuel startup ecosystems

Tech is now a $35 trillion industry. Startups are a growing and resilient source of new high-productivity job growth. The role of tech entrepreneurship in our economies has never been more important.

In partnership with the International Economic Development Council, we’ve explored the power of data and insights in measuring and promoting startup ecosystems, at city, region and national levels.

Report - Measuring & promoting startup ecosystems with data and insights

Why startups matter 

As a $35 trillion industry, tech has a major impact on cities and local communities, affecting all sectors. It’s not just about Big Tech; our analysis shows that younger generations of startups are creating just as much value as older ones. The ship has not yet sailed on capturing and nurturing tech value creation. The role of technology entrepreneurship in our economy has never been more important.

It is becoming increasingly clear that scalable startups are the engines that drive economic growth and job creation in many markets around the world. According to our latest data, startups in aggregate grow about 3x faster than the traditional economy, and are responsible for 10% job growth worldwide since 2017. 

Why your ecosystem matters 

Startup ecosystems – the wide network of players that contribute to a thriving startup community and economy – are fuelled by many things, from capital and talent, to policy and partnerships. On the capital side, data shows that startups add jobs 3x faster when they have venture capital (VC) backing. 

As ecosystems are maturing, innovation is happening everywhere: startups, unicorns and capital are more distributed than ever. There are now 42 hubs in the US alone that have produced at lease one unicorn startup, valued over $1B. Of 170 unicorn hubs worldwide, 65 are in Europe. 

The fact that more than ever a company can be built from anywhere, makes local support all the more crucial for fostering individual startup ecosystems. Every startup ecosystem is different, and so must be its entrepreneurial support. Though just one piece of the puzzle alongside VCs, accelerators, corporates and entrepreneurs, governments play a critical role in developing a thriving startup ecosystem: designing startup-friendly regulatory frameworks, optimising international talent pipelines, providing R&D capital, funds of funds, and dictating ease of business.

With the rapid spread of efforts to build entrepreneurial ecosystems, it’s more important than ever to know where startup ecosystems stand on the global stage.

How Dealroom can help you measure your ecosystem

How (and why) Dealroom works with governments is best summed up with our company purpose: “We believe that better data and more transparency can accelerate entrepreneurship and innovation. It does so by inspiring people and by enabling better decisions. These decisions affect capital allocation, financial outcomes, social impact, access to opportunity, policies and more.”

Dealroom is helping dozens of governments drive insights and data into policy decision making, reduce friction for startup growth, and discover the world’s most promising companies. Because it’s our purpose.

Report - Measuring & promoting startup ecosystems with data and insights