A couple of years ago USA was an absolute heaven for startup companies and more than 90 percent of the whole worldwide startup revenue was there but this has changed in the recent years and USA has around 50 of the whole business in 2018. But what happened and why USA is no longer the edgy dreamland for startups?
Startup world is changing and stats are showing it as well. As we have said, USA is no longer the best country for startups and the evidence are given by City Lab analyzers, china is rising up fast and this situation changed the landscape dramatically in the last 10 years.
China had only 3% of global share for venture investment in 2005 but this number increased to near 24% in 2018. Not only that, right now Venture capitalists are more active in one city more than they are in Beijing and that city is San Francisco. As the matter of fact, these two are fairly close and the third position which is New York has less activity than half of what Beijing does.
But when you consider how much these investments will contribute to global startup growth then you will find Beijing on top with nearly 20% of the whole world and San Francisco falls behind by 4 percent.
If we consider the level of growth in venture capital investment then there are no US cities in the top 10 and Bangkok will be the leader followed by Hangzhou and Jakarta. So as you can see, East Asia is getting the edge over US in terms of growth and this is a sign of a major paradigm shift in startup world. It means that people are tend to invest in East more than US and if the same situation continues for half decade more then we will see other names as the best country for startups.