Asia and Africa Surge Ahead in Startup Genome’s 2025 Ecosystem Rankings
Startup Genome’s 2025 report reveals a 31% global ecosystem value drop, while Asia and Africa show strong growth. The rise of AI-native ecosystems is reshaping global innovation.
Startup Genome, in partnership with the Global Entrepreneurship Network, has released the 2025 Global Startup
Ecosystem Report (GSER) in its 13th year, today at VivaTech Paris. The GSER leverages the largest quality-controlled
dataset in the industry, analyzing data from over 5 million companies across 350+ entrepreneurial innovation
ecosystems. Built on over aa decade of Startup Genome’s independent research and policy expertise, and driven by a
consortium of representatives spanning 65+ countries, the report provides insights on key trends, investment flows,
and policy strategies driving entrepreneurial success.
This year marks a major shift – with Asia and Africa surging while much of Europe falters. 2025 has seen a sharp
decrease in Ecosystem Value globally, down 31% in aggregate, marking a significant break from years of sustained
growth. The shift is closely linked to a downturn in major exits and IPOs. The report ranks the Top 40 global startup
ecosystems, Top 100 emerging ecosystems, and features regional rankings. For the first time, the GSER rankings
include an AI Factor, tracking the race to transition startup ecosystems to AI Native ecosystems. With 90% of
current AI funding concentrated in the U.S. and China, economies that don’t rapidly implement targeted ntrepreneurial
AI policies risk losing billions instead of emerging as tomorrow’s innovation powerhouses.
Further global key findings from the #GSER2025 include
● The global disparity in Ecosystem Value change is stark: Asian and sub-Saharan African ecosystems saw a
decrease of 17%, while Latin America experienced an aggregate drop of 45%, Europe 24%, MENA 22%, Oceania
19%, and North America 18%.
● AI & Big Data surged, becoming the fastest-growing sub-sector with a 33% increase in VC funding, now
commanding 40% of all global VC investment, up from 26% in 2021.
● Across last year’s Top 40 ecosystems, the total count of large exits decreased by a troubling 31%. Those bucking
this trend were primarily Asian ecosystems – Shenzhen, Tokyo, Seoul, and Shanghai – together with Paris and
Philadelphia.
● Hong Kong made the most significant improvement of all Top 40 Global Startup Ecosystems, jumping up from the
Emerging Ecosystems ranking in 2024 to #27 globally this year.
● Bengaluru-Karnataka reached #14 in the Top 20 ecosystems, an impressive improvement of seven positions from
last year.
● Philadelphia jumped 12 places to #13, the most significant movement of all North American ecosystems in the
Top 40.
● Paris and Madrid were the only European ecosystems in the Top 40 to improve rankings, with Paris rising to #12
following a surge in unicorns and early-stage deals.
Though still Europe’s top performing ecosystem, London dropped one place to the #3 globally - it was tied with
New York City for #2 from 2020-2024.
● São Paulo remains Latin America's only Top 40 ecosystem at #37, leading the region in overall performance.
Meanwhile, Mexico City continues to lead among emerging ecosystems.
● Riyadh had the most significant growth in MENA, moving up from the 51-60 range in 2024 to the 21-30 range
among the emerging ecosystems, fueled by major growth in exits over $50 million.
● Cape Town and Lagos lead sub-Saharan Africa, with Lagos ranking highest in Funding and Cape Town in Talent &
Experience.
● Sydney is Oceania’s top performer, ranked #25 globally, while Melbourne maintained its #32 spot with a 14% VC
funding increase.
“We’re at a pivotal moment 2 years into the AI era of exponential startup ecosystem growth. Ecosystem Values
corrected down 31% yet some are pulling ahead: those investing in the accelerated creation and support of
AI-Native startups (rather than putting 100% in AI infrastructure and adoption). The future belongs to nations and
cities that combine bold vision with new AI-native startup policy action to hitch the AI wave. In response, Startup
Genome is launching a global entrepreneurial AI policy coalition to support ministries and agency leaders.”
— JF Gauthier, Founder & CEO, Startup Genome The GSER is created in partnership with the Global
Entrepreneurship Network, Dealroom, Crunchbase, Pitchbook, Bella Private Markets, and Tracxn. The 2025 edition
provides actionable guidance for policymakers, ecosystem leaders, and founders to develop evidence-based
strategies that strengthen startup communities - the world’s most powerful engine of job creation and economic
growth.
“The lesson is unmistakable: the bold change the world. Ecosystems that move rapidly to develop AI-specific
strategies will reap the greatest rewards. Those that hesitate risk being left behind as value creation accelerates
around them.” — Jonathan Ortmans, President of the Global Entrepreneurship Network Discover how 150+
entrepreneurial ecosystems across the world stack up and view the full report here. Explore previous editions of
the GSER and other insightful Startup Genome reports here.
