Bjoern Herrmann, Max Marmer and Ertan Dogrultan, creators of the Startup Genome, the data-driven research project that provides an in-depth look into what makes tech startups successful — and not so successful, are back and revealing the world’s top 25 startup ecosystems based on research from 16,000 startups.
It was no shock to see Silicon Valley at the top of the list, but Boston’s low ranking at number 18 is surprising.
This low ranking made no sense to me, and so I turned to Jason Evanish, co-founder of Greenhorn Connect, for answers. He made an important point: “The results are based on self-admitted qualitative data. As my first mentor in the Boston startup scene, John Prendergast used to tell me, ‘The plural of anecdote is not data.’ Our ranking is obviously incorrect and simply biased by an insufficient base of our startup community taking the survey. There is plenty of evidence out there to show we have the most funding per capita in the country, and we go toe-to-toe with NYC in Internet startups.”
TechCrunch’s article about the ranking discussed the data and summed it up with a simple statement, “Startups go where the money is — and historically, that’s been Silicon Valley, with Boston and New York City being mentioned as addenda. Yet, over the last few years, things have been changing, and today that’s more apparent than ever, as viable companies are popping up across the globe.”
There is obviously an influx in startups around the world today, but innovation and funding are still thriving here in Boston. For more insight, I turned to Matt Hooper, CEO and co-founder of SMAK, a Boston-based startup that uses a cloud-based rules engine to aggregate information from email accounts, social media sites, and devices into one location.
“For me, the bottom line is cash. It takes funds to operate and drive a business. Boston’s money seems to flow well at $500k and higher. Yet, a lot of heavy lifting on a product idea can be done for less than a $100k.”
When asked about the level of innovation at the universities, Hooper offered this nugget: "We have schools like Northeastern, Hult and Babson creating innovation programs to support the entrepreneurial spirit." But we need the big money companies like Bain, Fidelity, EMC and Staples to step it up by providing the funds so we can really start to accelerate the great talent we have here.”
What does the Startup Genome data reveal about your city’s startup ecosystem?