#RoseBudThorn: State of Global Startup Ecosystems

The world of digital support for entrepreneurs is exploding.

One of the world's most prestigious Silicon Valley accelerators, Y Combinator, is thinking about going digital. In YC’s last batch, 40% of companies were international but had to relocate to participate. The opportunities for connection and growth are going to skyrocket for innovators around the world. 

We’ve seen it first-hand too. As a global ambassador for Meaningful Business, our Talle team helped host Mission Possible just last month. This 3-day virtual event attracted attendees from over 70 countries to learn, network, and get inspired.

As technology opens doors for global connections,  let’s not forget the importance of our regional networks. Entrepreneurs need both global connections, and local supports. A Brazilian fintech tech solution inspired by innovation in London will need a network of industry mentors, regulatory champions, and a community of supporters that are committed to navigating the road ahead. 

The fancy dinners, investor events, and demo days may be on pause, but we cannot let our regional ecosystems become COVID19’s next victim. 

We caught up with three ecosystem leaders to get their #RoseBudThorn perspectives on the state of global innovation ecosystems. 

At the end of 2019, London ranked as one of the world’s top fintech ecosystems, second only to San Francisco. It’s ecosystem allowed ideas to flow from the minds of entrepreneurs into the hands of consumers. Last year the UK saw record-high volumes of cashless transactions, leading the world alongside Finland, South Korea, and Singapore in the 2019 World Payments report. The UK fintech industry now has an enormous opportunity to help businesses accelerate the move from cash to digital, a challenge that will surely require cross-sector collaboration. Michael Mellinghoff, a fintech ecosystem super-connector knows entrepreneurs can’t do this alone, “they need a network of champions in industry and government that see the economic and social promise of innovation”. Always the realist, Micheal adds that, like the rest of the world, the UK is still navigating an evolving pandemic, people are wary of Brexit implications, and there will be impacts from the unfolding Wirecard insolvency. He reminds us that uncertainty is blooming alongside opportunity. 

In Brazil, WeWork Lab manager Alex Junior shares that their early-stage entrepreneurs are staying connected despite uncertain times. Some members are using this time to double down on their social impact, and focusing on building trust with users. This is the case of Sejunta, a company that was named a WeWork #CommunityHero for their work supporting teachers and students with digital learning tools. An emerging global player, Sao Paulo’s fintech ecosystem ranked #5 globally in 2019. Communities like WeWork Labs, Inovabra, and Distrito are vital to sustaining this growth. Despite a rocky funding climate ahead, startups are an economic lifeline during a recession. Research shows that over half of Fortune 500 companies were created during a recession, and over 50 tech unicorns, collectively valued at $145.2 billion, were founded during the 2007-2009 recession years. Did you know AirBnB was one of these companies? It was born out of the founders being unable to afford their rent. Innovation isn’t stopping anytime soon and Brazil’s fintech ecosystem is budding with opportunity. 

Over the last decade, Israel has taken lead as a global hub for high-tech talent. Tel Aviv, also known as the ‘Miami of the Middle East’, attracts European sun chasers and the most VC funding per capita worldwide. Startup Genome recently ranked Tel Aviv’s startup ecosystem as #6 in the world, driven largely by the country's highly competitive talent pool. In fact, it was the first country to offer a Cybersecurity Ph.D. and it is home to six cybersecurity university research centers. As a result, Israel exports an impressive $6.5 billion in cybersecurity products every year, which has already seen growth as a result of COVID19. Israel’s next hurdle is keeping these brilliant minds from leaving for American companies. Dr. Ansgar Niehoff, a technologist, and advocate for the Israeli startup ecosystem says he’d like to see more companies establish roots in Israel. “These startups are set up in Israel but are then acquired by American companies that set up their R&D hubs. We need jobs and IP to stay local in Israel. He shares that accelerator Programs like 365X by Sarona Ventures backed by Microsoft and others are trying to address this thorn, but there is more work to be done. 

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