Top of the charts
Chile’s capital on list of world’s leading cities for start-ups
The new report rates and ranks the best start-up ecosystems across the globe, and Santiago comes in at number 20 overall.
Tuesday, November 27, 2012
Category: Business - World Reviews on Chile
Photo: Hack Santiago / Flickr
There’s been plenty of media buzz surrounding Santiago’s great environment for start-up companies, but now there’s a wealth of statistical data to prove it. According to The Startup Ecosystem Report published last week by the Startup Genome, Santiago is the 20th best start-up ecosystem in the world.
About the report
The Startup Genome study was compiled alongside Telefónica Digital and researchers at Stanford University and the University of California, Berkeley. The rankings were crafted using the Startup Genome’s research tool Startup Compass, which has collected data from over 50,000 entrepreneurs and start-ups worldwide.
The study ranks cities on an incredibly detailed range of dimensions, including output, funding, performance, entrepreneurial mindset, trendsetting, support, and talent, among other things.
Silicon Valley in California tops the charts, and São Paulo, Brazil comes in at number 13. Santiago and São Paulo are the only two cities in Latin America to make the list.
Santiago’s high rankings
The report provides a detailed comparison of the world’s top start-up ecosystems on their Global Startup Ecosystem Index. Santiago ranked especially high in the following categories:
4th place - Mindset Index
Santiago is 4th in the world on the Mindset Index, which measures how well the entrepreneurs in a given ecosystem “think like a great entrepreneur.” The study defines a great entrepreneur as “visionary, resilient, has a high appetite for risk, a strong work ethic and an ability to overcome the typical challenges start-ups face.”
11th place - Company Performance Index
Chile’s capital ranks 11th on the Company Performance Index, which measures the performance and performance potential of start-ups in a given ecosystem. The index takes into account variables such as “revenue, job growth, and potential growth of companies.”
13th place - Trendsetter Index
Santiago is in 13th place on the Trendsetter Index, which measures how quickly a start-up ecosystem “adopts new technologies, management processes, and business models.” Authors of the study noted that there is a high chance the Trendsetter Index is a major indicator of the future success of a start-up ecosystem, given that “start-up ecosystems that stay on the cutting edge are expected to perform better over time.”
More statistics on Santiago
The following are just a portion of the findings of The Startup Ecosystem Report. The authors present their data in comparison to Silicon Valley, which is the number one ranked city for every category of the project:
- Start-ups in Santiago employ as many people per stage as start-ups in Silicon Valley.
- Santiago has a higher percentage of females participating in the start-up ecosystem than Silicon Valley, with 20 percent of Santiago’s entrepreneurs being female versus Silicon Valley’s 10 percent.
- The Santiago start-up ecosystem has the same healthy variety of start-ups targeting consumers, enterprise, and small and medium-sized enterprise customers as Silicon Valley.
- Overall, Santiago startups are similarly ambitious as Silicon Valley startups.
- Santiago founders work almost 1 hour less per day compared to Silicon Valley founders (8.76 hours vs. 9.95 hours in Silicon Valley).
- The average age of a Santiago entrepreneur is 28.42 years old, while the average in Silicon Valley is 34.12.
You can download the full report, which also includes an analysis of how Start-Up Chile is boosting Santiago’s start-up ecosystem, from the Startup Genome’s website.