New Palo Alto

Table of contents:

  1. What is New Palo Alto (NPA)?
  2. Trends observed in NPA in 2022
  3. Leading Ecosystems in NPA
  4. Global #1 region in Early Stage Investing
  5. Power of Proximity
  6. A global leader for innovation and talent
  7. Related content

What is New Palo Alto (NPA)?

New Palo Alto (NPA) is a supercluster of leading European ecosystems and research hubs that sit in close proximity of each other.

The primary three tech hubs include London, Paris and Amsterdam though New Palo Alto also includes nearby local ecosystems such as Bristol, Oxford, Brussels and Rotterdam to name a few.

New Palo Alto, when compared to global superclusters such as Beijing and Palo Alto, ranks 3rd globally by unicorn count and 1st globally for number of university alumni startups. Within Europe, New Palo Alto accounts for 46% of Europe’s startup enterprise value as well as home to 44% of all European unicorns.

The below map showcases this New Palo Alto network and the connected tech ecosystems and research hubs:

 

 

Trends observed in NPA in 2022

In 2022, total investment reached $41B, down from 24% against a record setting 2021.

The general trend over the last 12 months across New Palo Alto shows a mixed performance among the different ecosystems. London, Oxford, Cambridge and Bristol have seen a decrease in VC investment over the past 12 months while, Paris, Manchester, Brussels, Rotterdam and Amsterdam have seen an increase. In particular, Brussels and Manchester have had some of the strongest performances with 227% and 53% increase respectively over the last 12 months.

Leading Ecosystems in NPA

Across New Palo Alto , the growth rates of VC investment varies among the regions, with London showing the most consistent growth over the past decade, Paris showing a steady increase over the past decade, Amsterdam showing a more volatile growth pattern with a significant dip in the last 12 months, and other regions showing a relatively consistent growth rate.

 

Global #1 region in Early Stage Investing

New Palo Alto is to EMEA what Bay Area is to North America. EMEA is more skewed towards early-stage relative to North America. As a result, investment in startups has already caught up with the Bay Area at seed-stage, now accounting for 11% of the global seed funding.

New Palo Alto has surpassed Bay Area at the seed stage

Early stage investing

The past decade has seen a steady increase in early stage investment, particularly in the startup stage. With the exception of a slight dip in 2022, we have observed a consistent growth in investment from 2010 to 2022, with the startup stage receiving the largest share of investment. The breakout stage also saw a significant increase, with a 170% growth over the past two years, while the scaleup stage saw a moderate growth of around 20% in the last 2 years.

Startup stage

Breakout stage

Scaleup stage

Power of Proximity

Europe has the world's highest concentration of developed tech ecosystems packed together. The global map below measures the average number of connections between two tech ecosystem cities within 500km, one of which is a "top 50 city" per Dealroom's recently released Global Tech Ecosystem Benchmarking reportThe distance of 500 kilometres is chosen because a day trip is possible there, even by train. 

European countries such as Belgium, the UK, the Netherlands, Switzerland and France are among the top performers globally in terms of the highest density of top ecosystems per square area. Compared to other global regions such as the United States, Asia, and Oceania, European countries stand out ahead of the pack in this data point, as can be seen in the below map.

 

Within Europe, the countries with the highest concentration of nearby ecosystems are the UK, Belgium, and the Netherlands. Between Paris, London, Brussels and Amsterdam, direct train lines exist. This infrastructure allows for easier access to resources, funding and talent, helping to foster innovation and collaboration among entrepreneurs. Furthermore, these countries' well-connected networks can help startups scale up and expand their businesses more efficiently.

Furthermore, closely connected to London, Paris, and Amsterdam, there are numerous important hubs such as Cambridge, Oxford, Bristol, Leuven, Eindhoven, and Ghent.

Sure, there are borders and jurisdictions to consider. But for a startup or science project, these are surmountable issues. Many European even relish the cultural diversity and the opportunities this brings.

This is precisely the idea behind New Palo Alto: breaking down mental barriers and stimulating more cross-border and intra-city thinking. To turn fragmentation into a mosaic of innovation.

A global leader for innovation and talent

New Palo Alto is a leading hub for innovation and technology startups, due in part to its wealth in world-class education institutions such as Cambridge, Oxford, and Brainport Eindhoven.

These institutions not only provide best in class education to future founders, but also play a crucial role in fostering tech startup innovation by conducting cutting-edge research and offering resources to support entrepreneurship.

New Palo Alto through an alumni data lens

In the table below, you can browse through leading New Palo Alto universities through a range of alumni focused datapoints found on the Dealroom platform.

New Palo Alto also includes several Deep Tech and Life Science clusters like Oxbridge, the Northern Triangle region in England and Life Science clusters like Leuven.

New Palo Alto through a spinouts lens

New Palo Alto also leads globally in terms of spinout generation.  In the below table, you can browse through leading New Palo Alto universities through a spinouts datapoints lens.

 

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