2023-07-21 08:08:32
Flag of Estonia. Photo: archive “NG”
Estonia has been named one of the world’s fastest growing technology hubs, Startup Estonia’s monitoring press service told BNS on Friday.
According to one of the most authoritative reports on startup ecosystems, the Global Startup Ecosystem Report 2023, Estonia has risen to 10th place in the ranking of emerging startup ecosystems, improving its position in the ranking by 28 positions. In addition, the report named Estonia as the third fastest growing technology hub in the world, surpassed only by Turkey and Spain.
Signe Reinumägi, head of monitoring at Startup Estonia, noted that third place in the ranking strengthens Estonia’s reputation as a technology center. “The study highlighted the presence of favorable opportunities for global growth as a strength of the Estonian startup ecosystem. Among the growing technology centers, our growth in the ranking was ensured by an increase in funding for early-stage start-ups, this figure last year was almost half the result of 2021,” Reinumägi explained.
The largest start-up centers in Europe are London, Berlin, Amsterdam, Paris and Stockholm. The report notes that despite the difficult geopolitical and economic situation, last year was the second fastest growing year for the European technology sector after 2021.
In the global ranking of ecosystems, Silicon Valley, New York and London occupy the first places. The report indicates that Silicon Valley, which has been in the leading position since 2020, has not escaped the fall. Among major global ecosystems, China’s growth has also slowed. The country has been hit hard by lockdowns, and China’s growth is slower today than it was before the pandemic. Growth is being seen in India, which has recently become the world’s most populous country. India is doing a lot to support the startup ecosystem, including investment in infrastructure, reforms and growth-oriented investment.
The authors of the report note that several European countries have taken measures in 2022 to support start-ups and attract talent to their country. Local adaptation programs are playing an increasingly important role. The Estonian portal Work in Estonia is noted in the report as a strong point of Estonia. In addition to solving visa issues, the portal also provides information on job offers and supports the adaptation of families who have arrived from abroad.
Despite the volatility, markets are recovering and technology companies are playing an important role in this, responding flexibly to the situation and looking for innovative solutions. “Looking back, we can also assume that the economic downturn may stimulate new businesses. Capital and talent are concentrated in those companies that create value and are the most competitive,” Reinumägi added.
The report highlights that Deep Tech has become a major driver of ecosystem growth, and this, in turn, is leading to new expectations for start-up support programs. Deep tech startup development and investment cycles are much longer, so higher levels of technical expertise play an important role in new programs. Programs that focus on a specific area of activity attract more participants and have better results.
The Global Startup Ecosystem Report 2023 looks at 3.5 million companies and nearly 300 ecosystems worldwide. The authors of the study conducted more than a hundred interviews with experts, and more than 10,000 respondents answered the annual (2017-2022) survey. In addition, the study included data from three leading venture capital databases (Dealroom, Crunchbase, PitchBook).
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