Insight into the State of Global Start-up Ecosystem
Key insights on trends in global start-up economy, investments, exits and ecosystem growth from Global Start-up Ecosystem Report 2023 released by Start-up Genome
In 2021, tech start-ups experienced significant growth globally. This trend continued into early 2022. However, later in the year, various factors like global conflicts, supply chain issues, energy crises, and increasing inflation and interest rates introduced uncertainty. In the initial quarter of 2022, a dip in VC funding became evident, with a 13% decrease in the total amount raised compared to Q4 of 2021. Looking at the year as a whole, 2022 witnessed a decline of 35% from the preceding year. However, it's worth noting that even with this decline, the funding levels in 2022 were still higher than those observed during the peak of the pandemic in 2020.
Since 2022, tech companies have been reducing their workforce, reversing the hiring surge seen during the boom of 2021. According to Crunchbase data from March 2023, approximately 135,000 tech workers in U.S.-based companies, or companies with a significant U.S. presence, have been affected by these layoffs.
As we move closer to the end of 2023, inflation is slowing down, and the economy seems to be stabilizing. This gives us hope that from here on we will be seeing a shift in the trends. Thus, it is a good time to take stock of the current state of global start-up ecosystem.
We bring to you key insights from Start-up Genome’s Global Start-up Ecosystem Report 2023. Start-up Genome report is generated through an extensive research of a staggering 3.5 million companies spread across over 290 start-up ecosystems worldwide.
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