Photo: LinkedIn via Flickr
Last year, the Startup Genome Project was created to “crack the innovation code and increase the success rate of startups.” Since then, researchers have worked with more than 13,000 companies to determine success and failure factors of startups all over the world.
Startup Genome pulled out 22 findings that show the benefits and limitations of working in different startup hubs. Silicon Valley, it found, was the largest startup ecosystem, followed by New York and London.
The research seems to suggest that Silicon Valley is still the best place to start a company. New York City does have a few upsides though. For one, it has twice as many female founders as Silicon Valley.
And while Silicon Valley has Paul Graham, New York has Fred Wilson.
For more findings and research, head over to Startup Genome.
According to the researchers at Startup Genome, the startup ecosystem in Silicon Valley is still 3X bigger than New York. It's also 4.5X bigger than London and 38X bigger than Boulder.
Silicon Valley sees 22% more startups make it to scale stage than New York City.
Silicon Valley startups raise 2-3X more than New York startups during the early stages, which Startup Genome calls Discover, Validation and Efficiency. New York startups actually raise 27% more during the scale stage.
Silicon Valley startups create 11% more jobs than New York startups in the efficiency and scale stages, says Startup Genome.
Startup Genome writes, 'The number of high risk companies decreases steadily through the startup lifecycle, except in New York City where the number of high risk companies spikes from 45% to 67%, and has 4x more high risk companies in the scale stage than Silicon Valley.'
Silicon Valley startups are more likely to make games; New York startups are more likely to build marketplaces
'Compared to New York entrepreneurs Silicon Valley entrepreneurs are 2x more likely to be build games, 50% less likely to be build marketplaces, 23% more likely to be build social networks, 3.5x more likely to be build infrastructure and 2.5x less likely to be build financial tools,' Startup Genome writes.
Silicon Valley founders are more likely to make startups that go after a new market; New York founders are more likely to tackle existing markets with product improvements.
Silicon Valley founders are more likely to think their startup's market size is greater than 10 billion and 2X less likely to think the market size is under 100 million.
Although subscription fees are how startups everywhere tend to make money, Silicon Valley startups are more likely to generate revenue via lead generation and virtual goods. They're less likely to use a licence fee model.
'Compared to Silicon Valley Entrepreneurs, New York City entrepreneurs are 4.3x more likely to consider content their primary competitive advantage, 40% more likely for it to be niche focus, and 90% less likely for it to be team,' says Startup Genome.
In Silicon Valley, 45% more pivots happen than in New York City.
By comparison, Silicon Valley startups have 46% more mentors than London startups.
In Silicon Valley, companies report working 35% more (9.5 hours per day) than those in New York City (7 hours per day).
Whereas New York City startups' founding teams are two times more likely to be business heavy than Silicon Valley teams, Silicon Valley teams are 34% more likely to be technical.
Most founders in New York City and Silicon Valley only have an undergraduate degree.
But in New York, founders are 2.2X more likely to have PhDs than Silicon Valley.
On average, Startup Genome says Silicon Valley founders start twice as many companies as those from New York City.
The motivation in Silicon Valley and New York City is different. According to Startup Genome, 30% more founders in Silicon Valley 'want to change the world' than in New York City.
In New York City, 50% more founders start companies because they want to make 'a good living.'
Startup Genome says New York City founders cite their biggest challenge as having 'too much to do and being over capacity.' They're 3.7X less likely to say team building is their biggest hurdle.
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