Four Important Things to Note About Today’s Startup Ecosystems

Startup Compass has released its second report tracking the world’s top startup ecosystems.

The index is produced by ranking ecosystems along five major components: Performance, Funding, Talent, Market Reach, and Startup Experience.

Below are four key findings identified by the report.

1. Startup teams have become more international.

37% of all funding rounds in the top 20 ecosystems have at least one investor from another ecosystem, the report notes, while the number of offices that are second offices from startups outside the ecosystem or headquarters of startups that were founded elsewhere and moved to the ecosystem rose by 8.4 times over two years.

2. Exit values have skyrocketed.

Total exit growth across the top 20 ecosystems rose 78% annually from 2012 to 2014.

3. Seed stage capital is growing.

In Silicon Valley, it’s recently been ll about Series B and Series C rounds. Everywhere else, though, seed stage capital is growing steadily as younger ecosystems see the number of seed rounds jump by up to 53% in just two years.

4. Vancouver, Toronto, and Waterloo all took hits.

“The startup ecosystems which made the biggest falls are Vancouver [and] Toronto,” the report reads. However, it does note that “all of these ecosystems did grow in the past three years”—just “not as fast as other environments, which puts them at risk of eventually being left behind.”

“The growth of … Waterloo likely took a hit due to their close proximity to the larger startup ecosystem of Toronto,” the report reads. “Smaller ecosystems with close proximity to larger ecosystems often have a hard time continuing to grow due to new and existing talent and capital migrating to the larger nearby ecosystem.”