These top ten startup cities of 2020 from five countries, the United States, the United Kingdom, China, India, and Singapore, account for 58 percent of global funding, signifying its standing, you must follow these cities and Startups to keep a tab on the global Startup ecosystem and opportunities it creates.
Startups have proven to be capable of defining economies and have been pivotal in the development of cities and countries significantly in the recent years. Many of these cities, like San Francisco, London, Beijing, or Bengaluru, have become synonymous with startups and have inspired the creation of several other startup hubs.
HexGn studied the startup funding patterns in 2019 for startups across the world and has derived a list of the top startup cities. In the order of global ranking, they are, San Francisco Bay Area, New York, Beijing, London, Shanghai, Delhi NCR, Singapore, Los Angeles County, Hangzhou, and Bengaluru.
San Francisco Bay Area is at Number 1 in the HexGn Top Ten Startup Cities To Watch Out in 2020
This has been the reigning hub globally for years together and has maintained its position with $57 billion in funding in 2019. Home to an abundance of talent, capital, and some of the top tech startups in the world, this American hub has several small startups grow to become the most influential companies across sectors. With a GDP of $535 billion and a population of 39 million people, the area is particularly fertile for software & SaaS startups, as is evident by the funding it received in 2019. The software & SaaS startups in the San Francisco Bay Area raised $10 billion in 2019. They were the highest-funded segment in the region last year, followed by the fintech segment, which secured $9.4 billion. Here are some of the top-funded startups from the San Francisco Bay Area that have created headlines with their funding activities in 2019.
Cruise
Cruise is an automatic startup that aims to build the world’s most advanced self-driving vehicles. The idea is to do so safely and help connect people with the places, things, and experiences they care about with the best of automotive technology. It has secured over $5.3 Billion in funding to date.
Flexport
Flexport is a tech-driven freighting solutions company. The venture is facilitating global trade through advanced logistics options with the help of its modern web application. It has raised over $1.3 Billion in funding to date.
Verily
This is the highest funded health and medtech startup from San Francisco Bay Area for 2019. It specializes in health data management – offering devices and tools to collect and organize the same. Verily has garnered over $1.8 Billion in funding to date.
New York is at Number 2 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Startups from New York raised $30 billion in 2019 with the real estate startups marching forward with an almost fifty percent share in this amount. Real estate entrepreneurs should be heading to this city in the coming year to enjoy the company of disruptive proptech startups like Spruce, Reonomy, and Procore Technologies that have grown from this city. Other than real estate, this cosmopolitan in the USA also has a well-funded software & SaaS segment that raised $4.5 billion in 2019. The city has a GDP of $1.53 billion and is expected to surpass the GDP of Tokyo by 2035. Last year, the city had the highest population in the USA at 20 million; the city witnesses a sea of people moving into it each year to explore the entrepreneurial and educational opportunities here. Here are some of the top startups from New York for 2019 that have shaken up the ecosystem with their high-value funding deals.
Commonbond
CommonBond is a startup that wants to meet the challenge head-on with bigger savings, better service, and easy online application. The financial technology company intends to provide students and graduates with affordable, transparent, and simple learning means options for higher education. It has raised over $1.6 Billion in funding to date.
UiPath
This is a Robotic Process Automation and artificial intelligence startup that offers its dynamic software for helping enterprises automate various aspects of work to create a more productive workforce. It has raised over $1 Billion in funding to date.
Knock
Knock is a proptech startup creating ease in selling and buying homes. The venture offers a simple process through its online home selling platform, helping one avoid the hassles of the traditional home buying/selling process. It has raised over $435 Million in investments to date.
Beijing is at Number 3 in the HexGn Top Ten Startup Cities To Watch Out in 2020
As a startup ecosystem, Beijing has been in the spotlight for its funding activities more than ever since 2017. Last year, too, this startup hub had garnered all the attention for the $25 billion it has received in startup investments. The headquarters of the most innovative social media, gaming, and entertainment startups are here. The presence of the top-notch social media, gaming, and entertainment startups explains why the segment is one of the highest-funded in the city. Beijing’s startup scenario is characterized by a large consumer market, terrific networking opportunities, and ample government support. In 2019, the city recorded a population of a little over 20 million and had a GDP of about $327 billion. Startups in the data and cloud enablers space can also explore the city for opportunities as investors have shown keen interest in startups from this segment. Last year, ventures that dealt with data and cloud-enabling solutions raised $4.2 billion in investments. Here are some of the top Beijing-based startups of 2019.
Tenglong Holding Group
Tenglong Holding Group is a leading data enabler in the region, helping several tech businesses thrive. It specializes in offering in-depth customization services for globally distributed data centers. It has raised over $3.7 Billion in funding to date.
Kuishou Technology
This has been one of the highest funded startups from the social media, gaming, and entertainment category. Kuaishou Technology is a globally known platform for sharing short videos. The platform boasts of active user count of over 200 million. It has raised over $4.4 Billion in investments to date.
Chehaoduo
Chehaoduo offers an online vehicle marketplace platform. The startup provides online trading services, making it easier for people to buy or sell cars conveniently from their homes. It has raised over $3.4 Billion in investments to date.
London is at Number 4 in the HexGn Top Ten Startup Cities To Watch Out in 2020
The funding pattern for startups in London did not show a dipping pattern despite all the uncertainties around Brexit in 2019. Home to $10.3 million people, London, the capital city of the UK, is a melting pot of people from various cultures. The total investments in the city grew by 3 billion since 2018, capping at $13 billion. London is a global hub and especially ideal for fintech startups and entrepreneurs. Last year, startups from the fintech segment raised the highest funding – about $7 billion, more than half of the total investments received by the city as a whole. The second segment to have commanded attractive investments in the city was the e-tail segment, which got $1.3 billion in 2019. The global nature of the city and the availability of talent (thanks to premium universities here), London proves to be a great city for entrepreneurs. Here are some of the top startups from London that shined in 2019 with their funding deals.
Greensill Capital
Greensill Capital is one of the highest funded startups from London for 2019. It is a leading fintech startup offering working capital to companies across the globe. It has raised over $1.7 Billion to date in investments.
Lendable
Lendable allows people in need of financing to get access to a transparent lending structure to help borrowers get loans only after fully knowing the rates. It allows people to find loans directly from investors. It has raised over $1.3 Billion in funding to date.
Deliveroo
Deliveroo is a leading player in the on-demand services segment and is involved in the food delivery business. The venture completed one round in 2019, which features among the top deals from London for 2019. It has raised over $1.5 Billion in Startup funding to date.
Shanghai is at Number 5 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Despite an alarming decline of over 65 percent in funding this year%, Shanghai still manages to find itself among the top cities globally in 2019. Shanghai is an important city in China known for its large urban population; the total population of Shanghai in 2019 was 27 million. Popular for its excellent connectivity and cosmopolitan nature in the region, Shanghai is a promising city for startups in the transportation and logistics space. This segment was one of the highest-funded in 2019, with total investments of $1.7 billion. Shanghai got maximum investments in the Social media, gaming, and entertainment segment in 2019 with startups in raising $1.8 billion cumulatively. Because Shanghai is an important cosmopolitan, the city also provides a conducive environment for lifestyle startups to thrive. Last year, the city had a GDP of $480 billion, thanks to the high concentration of economic activities in the city. Let us look at the top startups from Shanghai that closed notable funding rounds in 2019.
Bytedance
This venture is an umbrella organization that owns a series of content platforms through which people can connect. One of the most popular sub-platform of the company is the social video platform TikTok, which boasts of users from countries across the globe. It has raised over $4.6 Billion in funding to date.
Hozon
Hozon is an automotive startup that provides a range of online and offline services. The venture specializes in electric vehicles and offers manufacturing, sales, and after-sale services for EVs. It has raised over $600 Million in funding to date.
WM Motor
With over $1.6 Billion in funding to date, WM Motor is an electric car manufacturing company and is of the highest funded startups within its segment for 2019 in Shanghai. The startup currently offers two EV models that have been built to provide smart driving experiences.
Delhi NCR is at Number 6 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Delhi NCR has been one of the handfuls of startup cities to have recorded a growth in its startup investments in 2019. The city boasts being one of the top cities with the highest GDP($110 billion) in India and has a population of 28 million people. Delhi NCR ranks second in the world with the second-largest urban population and is in the running to become the most populated city by 2030. Investments in the region grew by 95% in 2019, amounting to $7.7 billion. Delhi NCR, for the first time, claimed a higher rank than India’s other startup capital Bengaluru in 2019, heralding a new era as a leading startup city in the country. If you are a fintech entrepreneur and are looking for a spot in India to set up, head straight to Delhi NCR, where the segment attracted close to $3 billion last year. The travel and tourism segment in Delhi NCR is also a flourishing space. It ranked second in terms of the total investments with total funding of $1.8 billion. Here are some other notable startups from the city:
PayTm
Paytm with over $3.5 Billion from investors to date, has been at the forefront of creatiing digital economy in India. The startup offers online mobile payment and e-wallet solutions. One97 Communications owns the startup; PayTm has been a pioneer brand to offer mobile payment solutions in the country.
Delhivery
Delhivery is one of the fastest-growing Startup in the transportation and logistics segment. The services offered by the venture include express shipping services, fulfillment services, freighting solutions, and cross-border delivery services. It has raised over $935 Million in Startup funding to date.
Lenskart
Lenskart is a unique online optical store in India that has become popular for its budget-friendly prices and is a leading e-commerce brand from Delhi NCR region that is a leader in its segment in India. It has closed total funding of over $460 Million till date
Los Angeles County is at number 7 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Los Angeles is a fast-growing startup hub in the USA, especially for tech-driven ventures. It was one of the top centers globally in 2019, raising $7.5 billion. The county has a large share of VC investors, which is what makes it an ideal place for startups. With a population of 10 million people and a GDP of $710 billion, the Los Angeles Country is undoubtedly an important contributor to the US economy. Startups in the city’s transport and logistics segment have been rapidly growing and also attracting a large share of investments in the city. Last year, transport and logistics ventures raised $1.7 billion, topping the charts as the highest invested industry in the county. Startups within the health & medtech segment especially can explore a multitude of avenues to help them grow as the ventures within the segment attracted the second-highest funding last year. Here are some of the top startups that created a buzz in 2019 with their respective funding rounds.
SpaceX
This venture is a renowned space tech brand founded by Elon Musk. The startup is involved in designing, manufacturing, and launching of rockets and spacecraft. It has raised over $3.2 billion in funding to date.
CloudKitchens
CloudKitchens is an innovative real estate company that is facilitating F&B entrepreneurs to open delivery-only food businesses. The startup specializes in providing smart kitchens to such delivery-only restaurants. It has secured over $400 Million in Startup funding till date
Bird
The bird is a fast-growing vehicle sharing platform from Los Angeles. The startup helps in facilitating information regarding pick-up and drop-off for available electric vehicles in their preferred locations and has raised over $623 Million in funding till date
Hangzhou is at number 8 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Known as the innovation capital of China, Hangzhou raised $5.5 billion in 2019. However, Hangzhou, like its other counterparts, saw a decline of 70% in the investments in comparison to 2018. Home to e-commerce giant Alibaba, the city has a notable e-commerce segment, which raised about $3.5 billion in 2019. Hangzhou has also grown to become an essential transport and logistics hub in China, but over the years has diversified to create a nurturing environment for tech startups in all segments. The investments in the transport & logistics space capped at $659 million last year. Hangzhou has a population of 7 million and is the capital of the Chinese province of Zhejiang. These are some of the top-funded startups from 2019.
Cainiao Logistics
This startup that operates a logistics information platform for the Alibaba Group. This transportation and logistics venture clocked a $3.3 billion funding round in 2019, making it one of the highest funded Startups in 2019, cumulatively, It has secured over $4.9 Billion in funding from investors.
Beidian
Beidian is a fast-growing social e-commerce brand in China. The platform offers member-based services and helps buyers connect with the manufacturer directly to get attractive discounts. It has secured over $123 Million in funding to date.
Kujiale
This online information and design platform provides customers with information and reviews on businesses related to home decoration and furnishing. It has secured over $235 Million in funding to date.
Singapore is at number 9 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Singapore has proven to a highly fertile city for startups time and again. The city has a burgeoning e-commerce segment and is an excellent place for entrepreneurs from this segment to move to, considering how well the e-commerce ventures here have grown. The transport and logistics segment has increased at an impressive rate in Singapore and was the only segment in the city to have gathered investments of more than a billion dollars. Startups from this segment raised $2.4 billion in 2019. The country has some of the most business-friendly policies and ample startup resources, attracting a growing number of entrepreneurs from around the world. The city recorded a population of 6 million in 2019 and a GDP of over $350 billion. Investors also showed a keen interest in the fintech segment in Singapore last year. Fintech ventures recorded total investments of $668 million in 2019. Let us have a look at some startups which closed some of the most notable rounds in 2019.
Grab
Grab operates a mobile technology platform that provides on-demand transportation, logistics, and financial services. Grab is one of the best-known startups from Singapore; it started in Malaysia and moved their headquarter to Singapore. It has raised over $9.1 Billion in funding to date.
Zilingo
Zilingo was formed with the vision to use technology for fair and efficient business solutions in the e-commerce space. The venture believes that the future of fashion belongs to everyone, and through their smart, technology-led solutions, the startup has tried to bridge the gap between creators and producers. It has secured over $308 Million in funding to date.
Deskera
Deskera offers cloud-based software for effective business management. It provides a B2B platform that businesses can use to track finances, recruit, and manage employees and has raised over $180 Million in funds to date.
Bengaluru is at number 10 in the HexGn Top Ten Startup Cities To Watch Out in 2020
Known globally for the high concentration of IT companies and the ample availability of tech talent, Bengaluru climbed one position to join the top 10 startup hubs in 2019. Eight startups from the city joined the unicorn club in 2019. With a GDP of over $70 billion, Bengaluru is one of the fastest-growing cities in India. The funding patterns in Bengaluru in 2019 remained unwavering despite the volatile economic conditions in the country and globally. The city has a growing autonomous transport and e-mobility segment, which closed deals worth more than $309 million last year. The city is also home to some of the biggest edtech and e-commerce brands in India. These were some of the startups that closed headline-worthy deals last year.
Udaan
Udaan is a B2B trade platform that is helping small and medium-sized ventures run their businesses smoothly. The startup has a user-friendly app that allows its users to connect, buy & sell, and grow with other users of the app. It has secured over $870 Million in funding to date.
Ola
Ola is a ride-hailing and sharing platform operating through a mobile technology platform. Customers can book cab and rickshaw rides through the ride-hailing app. It is one of the biggest Startup success stories from India, and it has raised over $3.8 Billion in funding to date.
BYJU’s
BYJU’s has had a significant share in helping the Indian edtech segment reach its pinnacle. It offers online learning material for K-12 as well as test preparation materials for a range of competitive exams in India. It has secured over $1.2 Billion in Startup funding to date.
HexGn, through its global research, industry events, and online programs, equips individuals and businesses to tap into new opportunities and Future Proof themselves. For more information on how to start or grow your startup venture, please write to us at info@hexgn.com.
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