Startup Genome Releases Global Startup Ecosystem Report: Cleantech Edition

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Startup Genome launched its new report, Global Startup Ecosystem Report: Cleantech Edition, at CleanTech Forum San Francisco. Founder & CEO of Startup Genome, JF Gauthier, introduced the report, noting that it’s the world’s most comprehensive and widely read research on startups. The report analyzed 3 million startups and 280 entrepreneurial innovation ecosystems.

The Cleantech Edition takes a detailed look into the the globally competitive landscape of technology-based startups focused on reducing environmental impact and solving the scale-up gap in the industry. Included are startups with a focus and dedication to renewable energy, logistics, transportation, and more. Key highlights are:

• The Top 5 Cleantech ecosystems:
  1. Silicon Valley
  2. Tel Aviv (first time ranking this high since 2012)
  3. Stockholm
  4. London
  5. Los Angeles
• North America & Europe dominate the top 25 Cleantech ecosystems.
  • North America 44%
  • Europe 40%
  • Asia has two in the top 25
  • The Middle East and North Africa (MENA) & Oceana each have one.
• In Q2 2021, there was 77% growth in the number of Series B+ deals, compared with A1 2020.
• Asia received a 2X increase in total late-stage investments in 2020 from $1.17 billion to $2.47 billion. Asia also saw a decline in Series A deals.
• Post-money valuation of cleantech companies increased by 23% in 2020 and 176% in 2021.
• Cleantech companies also have the highest age at transaction of any subsector.
  • The average company takes 3.8 years to reach Series A; 8 months longer than for tech startups across sectors.
  • The average company takes 5.5 years to reach Series B; 11 months longer than for tech startups across sectors.

Gauthier shared the following statement in a press release.

“Entrepreneurial innovation is essential to winning the fight against climate change and it will lead the way to net-zero only if we work together to eliminate the Cleantech scaleup gap so startups succeed in scaling globally at a much higher rate than now.”

A Quick Glance

The report also gives regional insights by region and each includes some of the challenges each region has had to face, insights, and rankings, and a look at the ecosystem pages. For Africa, the report focused on how entrepreneurs are innovating their way to prosperity. For North America, the report looked at the startup ecosystem in a post-pandemic era. In Latin America, the report looked at how startups are breaking records.

The report also names the top 5 performers and top regional challengers for each region. For example in Africa, the top 5 performers are:

1. Cape Town
2. Lagos
3. Johannesburg
4. Nairobi
5. Accra

It also shared details for some of these cities. For example, in Johannesburg, the total early stage funding was at $55 million with an ecosystem value of $572 million. The strengths of this subsector are in fintech.

Latin America is among the world’s most digitally active regions with internet usage exceeding China and India. The report noted,

“Rapid acceleration in the pace of technological advancement feeds a proliferation of startups in industries including Fintech, e-commerce, and Real Estate.”

“Despite such challenges as poverty and social inequality, the region represents a giant market with enormous room for growth and advancement. Capitalization of the technology market in Latin America, as a percentage of GDP, is growing at 65% per year compared to 11% in the United States and 40% in China, according to a study by Atlantico VC.”

In Europe, the report looked at the explosive growth of the Amsterdam-Delta startup ecosystem, while noting that the European ecosystem as a whole is thriving despite the past challenges of the last 18 months.

“Globally there are 79 ecosystems generating over $4 billion in value: more than double the number identified in 2017. A majority are in Europe.”

“Covid-19 crystallized European nations’ state support of and belief in startup ecosystems as the lifeblood of our economies. Take the Future Fund, created by the government in the United Kingdom to propel companies through the pandemic.”

“It is estimated to have supported 11% of U.K. equity deals announced last year, with roughly $1.4 billion. Such increases in state-backed funding have been widespread across the continent, contributing to Europe’s success on the global scene. The average value created by European startup ecosystems in this year’s GSER period is $6.3 billion, second only to North America.”

In regards to the Amsterdam-Delta region, it has around a tenth of the population of London, but over the last decade, Amsterdam has been growing quickly in terms of overall value of its startup ecosystem.

You can read the full report here.