In recent years, the world of VC funding has seen a massive shake-up. New cities and countries are stepping into the spotlight, while some old favorites are seeing their share slowly slip away. These changes aren’t just numbers on a chart—they’re changing where startups are born, how they grow, and even what industries get funded.
1. In 2023, Silicon Valley’s share of U.S. VC funding dropped below 30% for the first time in over a decade.
What’s Happening to Silicon Valley?
Silicon Valley has long been the go-to place for tech startups and investors. It was the symbol of innovation. But times have changed. In 2023, for the first time in more than 10 years, Silicon Valley’s share of all U.S. venture capital funding dipped below 30%. That’s a big deal.
This doesn’t mean Silicon Valley is dead. Far from it. But it does mean it’s no longer the only place startups need to be. Other cities are getting serious money, too. And many founders are realizing they can build strong companies elsewhere—often with lower costs and less competition.
Why This Shift Matters
Lower cost of living, easier hiring, more remote work, and local incentives are driving founders away from the Bay Area. Investors are following. With fewer geographical barriers to building tech, the competition has spread across the U.S.
What Founders Should Do
If you’re in Silicon Valley, you should re-think your fundraising approach. Investors may want lower burn rates or more proof before writing checks. If you’re outside the Bay Area, you now have a stronger case: great companies are being built everywhere.
- Don’t feel pressure to move to Silicon Valley just to raise money.
- Build relationships with regional angel groups and national seed investors open to remote or hybrid startups.
- Use your location as a strength: talk about lower burn, access to talent, and quality of life when pitching.
2. Miami saw a 250% increase in VC funding between 2020 and 2022.
What’s Fueling Miami’s Surge?
Miami’s VC funding boom is no accident. From 2020 to 2022, it saw a staggering 250% increase in venture capital. That growth was fueled by several factors: an influx of tech talent from San Francisco and New York, mayor Francis Suarez’s open courting of tech, and a business-friendly tax environment.
What’s more, COVID-19 normalized remote work. Many founders who moved to Miami during the pandemic decided to stay—and started building companies. With them came investors and new firms.
How Startups Can Ride the Wave
If you’re in Miami, this is your moment. VCs are actively scouting deals there, and the spotlight is still shining.
- Network locally: attend pitch events, join accelerators like The Venture City or Miami Angels.
- Highlight Miami’s growing ecosystem in your pitch deck—it reassures investors of your support network.
- Partner with local press and influencers to build credibility.
If you’re not in Miami but looking to expand or relocate, consider spending a few months there. Test the waters. Many startups are keeping flexible HQs—half remote, half in a city like Miami.
3. Austin VC funding reached $5.5 billion in 2022, up from $1.5 billion in 2019.
Why Austin Keeps Climbing
Austin has always had charm: live music, good food, and tech-friendly policies. But now it’s also a serious VC destination. In just three years, VC funding there jumped from $1.5 billion to $5.5 billion. That’s a signal that it’s not just founders who love Austin—investors do too.
Major firms like Andreessen Horowitz and 8VC are opening offices or making regular visits. Startups are launching in sectors like enterprise SaaS, fintech, and even clean energy. The ecosystem is deepening—and that draws more capital.
Advice for Startups in Austin
If you’re building in Austin, leverage its growing credibility.
- Mention the funding growth in your pitch—show that your market is heating up.
- Tap into Austin-specific investor circles. Look for co-investment from regional players like LiveOak Venture Partners.
- Position your company as part of a movement: Austin is building the next wave of tech, and you’re leading it.
Don’t underestimate how important this perception shift is. Ten years ago, people thought of Austin as quirky. Today, they think of it as a place where billion-dollar companies are born.
4. New York City consistently ranks second in total VC deals in the U.S., capturing over 15% of the national share.
NYC’s Consistent Strength
New York isn’t gaining ground as fast as Miami or Austin, but it doesn’t need to. It’s already a heavyweight. NYC now claims more than 15% of all U.S. venture deals, second only to Silicon Valley. That makes it one of the most stable and powerful ecosystems for fundraising in the country.
This consistency is driven by its mix of finance, media, health, and fintech talent. Big exits like Etsy, MongoDB, and Datadog built trust. More importantly, NYC’s diversity helps it stay relevant across market cycles.
What Founders Should Know
If you’re in New York, use its size and diversity to your advantage. Investors are comfortable writing checks here. They know they can source follow-on rounds, connect you with talent, and exit through IPO or acquisition.
- Target investors with domain expertise: NYC has VCs focused on fintech, SaaS, digital health, and proptech.
- Show your awareness of the ecosystem—mention competitors, local talent pools, and past exits in your pitch.
- Play up NYC’s scale and network effects. Your customers, media, and potential acquirers may all be right next door.
Even if you’re not based in New York, you can tap into its capital. Many NYC investors are hybrid or remote-friendly now.
5. Boston’s share of VC investments has declined from 10% in 2015 to 7% in 2023.
Why Boston Is Losing Ground
Boston was once the East Coast tech darling, especially for biotech and university-linked startups. But over time, its share of VC funding has quietly slipped—from 10% in 2015 to 7% in 2023. That doesn’t mean Boston is irrelevant. It still dominates biotech. But it’s facing stiff competition from other cities that are hungrier, faster, and more diversified.
The cost of living is high. The startup community is tight-knit but sometimes insular. And while there’s a lot of talent from schools like MIT and Harvard, many graduates leave town.
What Founders Should Do in Boston
If you’re a founder in Boston, this is a call to sharpen your edge. There’s still money, but you may need to work harder to get noticed.
- Differentiate your pitch. Don’t rely solely on your pedigree or biotech angle.
- Consider tapping coastal capital—Bay Area or NYC investors—for broader interest.
- Stay close to accelerators like MassChallenge and community builders like Venture Lane.
If Boston wants to bounce back, it needs startups that break molds. So be bold. Build outside of biotech. Show the city what’s possible.
6. Los Angeles VC funding surpassed $10 billion in 2021, a 40% year-over-year increase.
LA’s Big Break in Venture Capital
Los Angeles isn’t just about Hollywood anymore. It’s become a rising tech hotspot. In 2021, VC funding in LA crossed $10 billion—a massive 40% jump compared to the year before. That’s more than just momentum—it’s a signal that LA’s startup scene has matured.
What’s fueling this growth? A mix of entertainment tech, e-commerce, consumer products, and an influx of talent from Silicon Valley. Add to that the rise of influencer-backed startups and digital-first brands, and you get a city ready to lead.
How Startups Can Benefit in LA
If you’re building in LA, understand what makes it special. The city has a culture of storytelling, brand building, and visual design. Those things attract investors looking for the next breakout consumer company.
- Lean into LA’s strengths. If you’re in media, entertainment, health tech, or direct-to-consumer, you’re in the right place.
- Collaborate with influencers. Even early-stage startups can gain traction fast by building buzz through the city’s massive creator ecosystem.
- Join networks like Techstars LA or Amplify.LA to meet local investors and mentors.
LA is now seen as a place where startups can scale with style—and speed. If you’re local, this is your time to shine.
7. Chicago saw a 63% increase in VC deals from 2019 to 2022.
Chicago’s Quiet Climb
Chicago doesn’t make as many headlines as New York or Miami, but it’s quietly become one of the strongest startup hubs in the Midwest. Between 2019 and 2022, VC deals in the city grew by 63%. That kind of growth tells a story of persistence, grit, and diversification.
Chicago’s ecosystem is known for being pragmatic. Startups here are often revenue-driven early on. Industries like logistics, food tech, and health tech thrive in the region. Investors like Hyde Park Angels and M25 have helped cultivate local talent.
What Founders in Chicago Should Focus On
Being in Chicago means you’re probably closer to your customers than your peers on the coasts. Use that to your advantage.
- Emphasize your traction and market validation early. Chicago VCs love disciplined, efficient teams.
- Attend events like Chicago Venture Summit and connect with incubators like 1871.
- Build strong relationships with regional VCs first. Chicago-based firms have deep ties to follow-on investors nationwide.
Also, don’t be afraid to reach outside the region. National investors are keeping a closer eye on Chicago than ever before—especially as costs on the coasts rise.
8. Toronto VC funding grew 400% from 2017 to 2022, reaching over CAD 7 billion.
Toronto’s Tech Boom
Toronto is Canada’s tech capital, and its growth in recent years has been nothing short of explosive. Between 2017 and 2022, VC funding in the city grew by 400%, hitting over CAD 7 billion. That puts Toronto on the global map in a major way.
The reasons for this are clear. Strong universities, supportive government programs, immigration-friendly policies, and a deep talent pool are creating fertile ground for startups. Add in global firms like Shopify and Lightspeed paving the way, and it’s no surprise investors are doubling down.
Tips for Toronto Startups
Toronto has the right ingredients—but standing out still takes work.
- Highlight your access to global talent. Canada’s immigration programs allow startups to scale fast with skilled workers.
- Leverage government grants and accelerators. Programs like IRAP or MaRS help cut early costs and boost R&D.
- Think global from day one. U.S. and European investors are interested in Canadian startups that can cross borders quickly.
Also, build locally. Toronto’s community is tight-knit and collaborative. Use that to form strong alliances with other founders and advisors.
9. London remained Europe’s top VC hub with over $30 billion in funding in 2022.
London’s Reign Continues
Despite Brexit and macroeconomic challenges, London still leads Europe in venture funding. In 2022, startups there pulled in over $30 billion—holding its spot as the continent’s top VC destination.
What makes London resilient? It’s the blend of finance, deep tech, fintech, and legal infrastructure. Plus, investors know London is still a gateway to the wider European and global markets. Big exits, a mature talent pool, and a steady pipeline of new companies help keep it ahead.
How Founders Can Win in London
Being in London gives you access to the largest and most experienced investor base in Europe. But competition is tough.
- Differentiate your company by being razor-sharp on your market and traction. London VCs want clarity and focus.
- Build relationships with pan-European firms. Many investors have offices in both London and Berlin, Paris, or Amsterdam.
- Apply to top accelerators like Seedcamp and Techstars London—they offer a fast path to funding and support.
London also attracts international investors. So even if you’re based elsewhere in Europe, consider opening a small presence here to gain visibility.
10. Berlin’s VC market expanded by 75% between 2020 and 2022.
Berlin’s Rise in Europe
Berlin has always had a creative edge. But now it’s becoming one of the most powerful startup hubs in Europe. Between 2020 and 2022, VC funding in Berlin jumped by 75%. That’s not just a blip—it’s a real shift.
This growth is being driven by a strong culture of entrepreneurship, affordable living (compared to other European cities), and a growing base of international founders. Sectors like mobility, sustainability, and software are booming.
Making the Most of Berlin’s Momentum
If you’re a founder in Berlin, you’re in a city that’s moving fast. But that also means expectations are rising.
- Use Berlin’s global appeal in your pitch. Investors are excited by the city’s diversity and bold ideas.
- Get involved with hubs like Factory Berlin, and programs like APX or Berlin Startup Stipendium.
- Make English your company language from day one. It helps attract global talent and investment.
Also, Berlin is increasingly on the radar of U.S. and Asian investors. Be ready for global conversations—even at the early stage.
11. Paris surpassed Berlin in deal count for the first time in 2023.
Paris Is Picking Up Speed
Paris has always had the talent and ideas, but for years it trailed behind Berlin in terms of deal volume. That changed in 2023. For the first time, Paris overtook Berlin in the number of venture deals. This isn’t a random spike—it’s the result of years of investment in infrastructure, policy, and entrepreneurship.
Initiatives like Station F (the world’s largest startup campus), government tax incentives, and deep university-industry links have helped turn Paris into a major player. Sectors like deep tech, AI, fintech, and green energy are especially strong.
How to Stand Out in Paris
Paris is a rising VC capital, but also a competitive one. If you’re building a startup there, you need to be thoughtful and fast.
- Work closely with public funding sources like Bpifrance—they often co-invest with private VCs.
- Build partnerships with local research institutions. Deep tech founders can tap into France’s scientific strength.
- Make your pitch international. Even if you start in France, investors want to see global ambition.
Founders should also take advantage of growing English fluency in the startup scene. Build a bilingual company from day one to open up global talent and capital.
12. Tel Aviv saw VC investment rise by 195% between 2018 and 2021.
Tel Aviv’s Startup Scene Is Red Hot
Tel Aviv has always punched above its weight in the startup world. Between 2018 and 2021, VC investment there nearly tripled—rising by 195%. Israel’s mix of military tech, engineering talent, and a culture of resilience has made it a magnet for innovation.
Cybersecurity, AI, and enterprise software are especially strong areas. Global VCs often look to Tel Aviv for category-defining companies—and many big tech firms have R&D hubs there to keep close.
What Founders in Tel Aviv Should Focus On
If you’re building in Tel Aviv, you already have an edge. But the bar is high.
- Focus on tech depth. Investors expect serious innovation, especially in B2B markets.
- Get global fast. Israeli startups often think internationally from day one—keep that mindset.
- Look beyond the U.S. for expansion. Europe and Asia are increasingly interested in Israeli innovation.
Networking is also key. Many startups in Tel Aviv rely on referrals and insider connections, so get plugged into the right circles early. Join accelerators like Techstars Tel Aviv or MassChallenge Israel to meet local and global investors.
13. Bangalore’s share of Indian VC funding grew from 32% in 2017 to 41% in 2022.
Bangalore: India’s Startup Powerhouse
Bangalore has always been at the heart of India’s tech story. But its dominance is growing. From 2017 to 2022, its share of national VC funding rose from 32% to 41%. That means nearly half of all Indian venture capital now flows into this one city.
With top engineering talent, strong startup density, and global recognition, Bangalore is attracting investors from the U.S., Europe, and Asia. SaaS, edtech, fintech, and healthtech are all booming.
Advice for Bangalore Startups
If you’re building in Bangalore, competition is fierce—but the opportunities are huge.
- Double down on efficiency. Investors are becoming more selective, especially post-2022.
- Network with local and global VCs. Bangalore has both homegrown firms and satellite offices of global giants.
- Join thriving communities like SaaSBoomi, Headstart, or GSF to stay in the loop.
Also, keep your eyes on policy. India’s startup regulations are evolving fast. Stay compliant, but also take advantage of schemes like Startup India and digital lending frameworks that can give you an edge.
14. Mumbai’s share of Indian VC deals fell from 23% in 2018 to 16% in 2022.
Mumbai’s Shrinking Share
While Bangalore is soaring, Mumbai is losing ground. In 2018, it held 23% of India’s VC deal volume. By 2022, that had slipped to just 16%. Why the drop?
Mumbai still has strong roots in finance and media, but it hasn’t kept pace with the speed and scale of tech growth in Bangalore or even emerging hubs like Hyderabad and Chennai. Many startups are relocating or launching elsewhere to find better infrastructure and talent.
What Founders in Mumbai Can Do
This is not the time to retreat—it’s the time to rethink.
- Niche down. Use Mumbai’s legacy in finance, legal, and media to dominate verticals like fintech, insuretech, or content tech.
- Form local investor coalitions. New angel networks and micro VCs are springing up—work closely with them to build community momentum.
- Invest in visibility. Mumbai startups don’t get as much media coverage—change that by speaking at events and getting published.
If you can differentiate yourself in Mumbai, you’ll benefit from less noise and more focused investor attention.
15. Singapore saw record VC inflow of over $11 billion in 2022, a 25% increase from 2021.
Singapore: Asia’s Safe Bet
Singapore has become Asia’s most reliable hub for startups and investors alike. In 2022, the city-state saw VC investments top $11 billion—a 25% rise over the previous year. That makes it one of the few regions to keep growing even in a global slowdown.
Why? Political stability, strong rule of law, easy company formation, and a gateway position to Southeast Asia. Singapore is now home to startups, family offices, and VC firms from all over the world.
How Startups Can Succeed in Singapore
Singapore gives you access to regional markets while keeping your legal and financial base solid.
- Build your company structure wisely. Singapore’s regulatory environment rewards clean, well-run cap tables and governance.
- Use government support. Grants like Startup SG and EDB support can significantly extend your runway.
- Pitch regionally. Investors in Singapore aren’t just looking for Singapore-only plays. They want businesses that can scale into Indonesia, Vietnam, and Thailand.
Also, get out and network. Singapore’s startup scene is highly relationship-driven. Build trust early and you’ll gain access to capital and customers faster.
16. Dubai’s startup ecosystem funding grew 134% from 2021 to 2023.
Dubai’s Rapid Tech Evolution
Dubai has long been known for real estate, luxury, and tourism. But in recent years, it has rapidly positioned itself as a growing tech hub. Between 2021 and 2023, startup funding in Dubai rose by 134%. That’s a big leap in a short time—and a clear sign that the region is investing in innovation.
Several government initiatives have helped spark this rise, including Dubai Future Foundation and the introduction of visa and tax-friendly policies for entrepreneurs. Add in a strategic location between Europe, Asia, and Africa, and Dubai is becoming a magnet for startups and capital.
How Founders in Dubai Can Make the Most of It
Dubai offers speed, structure, and access—but you’ll still need a solid strategy.
- Take full advantage of regulatory sandboxes. The UAE government encourages fintech and healthtech testing in controlled environments.
- Partner with government bodies. Public-private collaborations are common and highly supported.
- Look outward. Dubai is a launchpad to serve MENA, South Asia, and beyond—not just the UAE.
Also, understand the market dynamics. Many businesses here blend Western models with local customs. If you can strike that balance, investors will pay attention.
17. Latin America saw a record $19.5 billion in VC funding in 2021, led by Brazil and Mexico.
Latin America’s Breakout Year
2021 was a landmark year for Latin America’s startup scene. VC funding soared to a record $19.5 billion, with Brazil and Mexico leading the charge. This explosion was driven by the rise of digital services—payments, delivery, e-commerce—across a region that was once underbanked and underserved.
Unicorns like Nubank, Rappi, and Kavak proved that global-scale companies could be born in Latin America. That success drew attention from global VCs like SoftBank, Sequoia, and Andreessen Horowitz.
Advice for LATAM Founders
If you’re building in Latin America, the spotlight is on—but so is the pressure.
- Focus on solving local problems at scale. Investors want real traction in big markets like Brazil, Mexico, or Colombia.
- Build lean. Many startups in the region thrive by being capital-efficient and solving everyday problems.
- Speak investor language. Many VCs in LATAM are international—make sure your pitch is bilingual and data-driven.
The growth in 2021 was huge, but sustainability now matters more than hype. Show that your business model works—and scales—across multiple markets.
18. Africa’s VC funding reached $6.5 billion in 2022, up from just $2 billion in 2019.
Africa’s Fast-Rising Innovation Scene
Africa is becoming one of the most dynamic emerging markets for startups. VC investment reached $6.5 billion in 2022—more than triple the total in 2019. That kind of growth shows how fast investors are waking up to the continent’s potential.
Startups are building solutions for payments, logistics, education, and energy—focusing on basic needs and underserved populations. Countries like Nigeria, Kenya, Egypt, and South Africa are leading the charge.
How African Founders Can Keep the Momentum
Investors are looking for scalable, mission-driven businesses across the continent.
- Focus on real-world impact. If your startup solves a systemic challenge—banking, health, mobility—you’re more likely to attract funding.
- Structure your company for international capital. Set up clean term sheets, use U.S. or UK holding companies if needed.
- Get plugged into global networks. Programs like Y Combinator and Techstars are actively recruiting African founders.
Also, understand local variations. What works in Nigeria may not work the same way in Kenya or Egypt. Localize wisely.
19. Nigeria led Africa in VC funding with $1.2 billion raised in 2022.
Nigeria at the Center of African Tech
Nigeria is the epicenter of Africa’s tech boom. In 2022 alone, startups there raised $1.2 billion—more than any other country on the continent. Lagos, in particular, has become a massive hub for fintech, e-commerce, logistics, and crypto.
Startups like Flutterwave, Paystack, and Andela have helped build global confidence in the Nigerian ecosystem. Investors see talent, grit, and massive market opportunity in a country with over 200 million people.
What Nigerian Startups Should Focus On
You’re in a market that’s hot—but you also need to manage volatility.
- Build trust through transparency. Nigerian startups face high scrutiny from investors—keep your reporting clean and frequent.
- Solve for infrastructure gaps. The biggest opportunities often lie in logistics, connectivity, and payments.
- Be bold—but compliant. Regulatory frameworks in Nigeria are still evolving. Stay ahead of policy changes and build relationships with policymakers.
Nigeria’s startup community is resilient, creative, and resourceful. Keep pushing that reputation forward.
20. San Francisco’s median deal size decreased 18% in 2023 compared to 2022.
A Tighter Belt in the Bay
Even though San Francisco is still a global tech hub, it’s not immune to market corrections. In 2023, the city saw its median venture deal size fall by 18%. That’s a big signal that investors are becoming more cautious, even in the most mature startup market in the world.
This drop is likely due to several factors: a reset in tech valuations, interest rate hikes, and a general shift toward capital efficiency over growth at all costs.
What Founders in San Francisco Should Know
If you’re raising in the Bay Area, you need to do more with less.
- Focus on traction, not hype. Investors want clear signs of product-market fit before they write checks.
- Cut your burn early. Make sure your spending is aligned with realistic growth—not just chasing headlines.
- Be upfront about risk. Address market slowdowns, customer acquisition cost, and runway honestly.
Founders who show maturity, fiscal discipline, and a strong grasp of their unit economics will still get funded. The bar is just higher now.
21. Remote-first startups received 20% more funding on average than those headquartered in traditional tech hubs in 2022.
Remote Is No Longer a Weakness—It’s a Strength
For years, startups outside major tech cities struggled to raise capital. But 2022 flipped the script. Remote-first startups—those without fixed headquarters—received, on average, 20% more funding than their city-based counterparts.
Why the shift? Investors are chasing great talent, not office addresses. Remote teams reduce burn, scale faster, and tap into global hiring pools. Startups that embrace flexibility are often more agile and capital efficient—traits VCs now value more than ever.
Action Steps for Remote Founders
Running a remote-first company? Use it as a badge of honor—not a caveat.
- Emphasize your operational strength. Show how remote helps you move faster, cut costs, and hire better.
- Be obsessive about communication. Investors want to know how you lead, sync, and scale with a distributed team.
- Showcase cultural alignment. Talk about how your team stays motivated, connected, and accountable.
You should also position remote as a growth advantage. Whether it’s entering new markets or accessing untapped talent, your flexibility can be a powerful differentiator.
22. U.S. secondary cities (e.g., Raleigh, Salt Lake City) saw a 45% YoY growth in VC deals in 2021.
The Rise of America’s “Tier 2” Tech Cities
In 2021, VC deals in secondary U.S. cities like Raleigh, Nashville, and Salt Lake City grew by 45% year over year. These aren’t traditional venture magnets—but they’re catching up quickly.
Several trends fuel this growth: people moving out of big metros, local universities producing top-tier talent, and cost advantages that help startups stretch their capital further. Investors are noticing—and they’re eager to get in early.
What Founders in Secondary Cities Should Do
If you’re not in a coastal city, don’t think of that as a disadvantage.
- Lean into your ecosystem. Local chambers, pitch competitions, and innovation hubs often offer better access and faster traction.
- Sell your efficiency. VCs are increasingly looking for capital-efficient startups. Your lower overhead is a real edge.
- Build bridges. Even if you’re based in Raleigh or Boise, make it easy for Bay Area or New York investors to get to know you—through virtual demo days or regular updates.
Also, collaborate with your city. Local governments and institutions want startup success stories. You can often find grants, incentives, or press coverage by simply reaching out.
23. VC funding in China dropped 38% in 2022 amid tightening regulations.
The Pullback in China’s Venture Scene
China’s tech industry went through major changes in 2022. VC funding dropped 38%, primarily due to regulatory crackdowns, geopolitical tension, and broader market uncertainty. That shift spooked global investors—and created a more cautious local environment.
Sectors like edtech, gaming, and internet platforms took the hardest hit. Meanwhile, hard tech and semiconductors saw increased state support but less private capital.
What Chinese Founders Must Consider
If you’re building in China, you need to be more strategic than ever.
- Monitor policy closely. Compliance is now a top investor concern—make sure your business model aligns with national priorities.
- Pivot toward state-supported sectors. AI, biotech, and clean energy are still attracting capital.
- Strengthen international ties cautiously. Cross-border deals are harder but not impossible—just be prepared for added scrutiny.
You should also work on reducing funding risk. Build internal capital efficiency and long-term sustainability so you’re less dependent on frequent funding rounds.
24. Beijing and Shanghai accounted for over 70% of China’s VC funding as of 2021.
China’s Capital Still Centers on Two Cities
Despite broader national shifts, Beijing and Shanghai remain the twin powerhouses of Chinese venture capital. In 2021, they collectively accounted for over 70% of the country’s VC funding. That’s a massive concentration.
Beijing dominates in AI, enterprise software, and advanced research. Shanghai leans more into fintech, health tech, and consumer tech. Both cities have a deep talent base, top universities, and long-standing investor networks.
Founders in Beijing and Shanghai: How to Maximize
If you’re in either of these cities, you’re in the right place—but competition is brutal.
- Build with speed and polish. Investors here see hundreds of decks a month—make yours stand out with clarity and vision.
- Get close to your local network. Investor relationships are everything in China, especially in uncertain times.
- Stay ahead of policy. Many VCs now require your startup to align with national priorities—be proactive in highlighting your alignment.
Founders should also think about regional expansion. Use Beijing or Shanghai as a launchpad into other Chinese provinces or even into Southeast Asia.
25. South Korea’s VC market reached a record $12 billion in 2022, up 58% from 2020.
South Korea’s Quiet Investment Surge
South Korea has built a reputation for world-class electronics and manufacturing—but its startup ecosystem is booming too. In 2022, VC funding hit a record $12 billion, marking a 58% jump since 2020.
The country’s strengths lie in deep tech, gaming, mobility, and fintech. Strong government backing, a tech-savvy population, and high-speed digital infrastructure help startups scale fast and globally.
How Founders in Korea Can Stay Ahead
If you’re based in Seoul or Busan, there’s a golden opportunity to build global-ready startups.
- Focus on IP-heavy innovation. Korean VCs value proprietary tech and patentable ideas.
- Join government-linked programs. Initiatives like TIPS (Tech Incubator Program for Startups) provide funding, mentoring, and credibility.
- Think beyond Korea early. With limited domestic market size, global expansion should be part of your pitch from day one.
Also, highlight your speed. Korean startups are known for fast execution—double down on that brand when raising capital.
26. Tokyo saw a 22% decline in VC investment between 2021 and 2023.
Tokyo’s Slowing Startup Momentum
Japan has long been home to innovation and major global brands, but Tokyo’s venture funding has taken a step back. Between 2021 and 2023, VC investment in the city dropped by 22%. That decline reflects broader concerns: a cautious investor culture, fewer unicorn-scale exits, and a relatively conservative startup environment.
Startups in Japan often grow slower, and investors expect more proof before cutting big checks. Compared to cities like Seoul or Singapore, Tokyo’s ecosystem has been less aggressive and less risk-tolerant in recent years.
How Founders in Tokyo Can Turn the Tide
If you’re building in Tokyo, there’s still a strong foundation—you just need to think differently.
- Show long-term sustainability. Many Japanese VCs care more about slow, steady growth than fast disruption.
- Tap into corporate VC. Japan’s large conglomerates often invest strategically and may offer longer timelines.
- Look abroad for capital. Southeast Asia, the U.S., and even Europe may be more receptive to higher-risk models.
Also, take a leadership role in community building. The Tokyo scene needs bold founders who are willing to take risks and speak publicly about startup growth. You can be that spark.
27. Brazil’s São Paulo accounted for over 65% of the country’s startup funding in 2022.
São Paulo: Brazil’s Innovation Engine
São Paulo isn’t just the financial capital of Brazil—it’s the beating heart of its startup world. In 2022, over 65% of all Brazilian VC funding went to startups based in this one city. That’s a massive concentration, but it also shows the power of a well-developed ecosystem.
From fintech to health tech, e-commerce to logistics, São Paulo leads in talent, infrastructure, and investor activity. It’s also home to many of Brazil’s unicorns and biggest startup success stories.
What Founders in São Paulo Should Prioritize
Being in São Paulo gives you proximity to everything you need—but you still need to stand out.
- Highlight your traction. Investors in São Paulo have lots of deal flow—show clear user growth, revenue, or engagement metrics.
- Be active in the ecosystem. Events like CASE, Cubo, and Distrito are essential networking grounds.
- Partner with scale-ups. São Paulo has many large startups and tech companies looking for innovation partners or M&A opportunities.
Also, if you’re based elsewhere in Brazil, consider opening a presence in São Paulo. Even a small office can help attract investors and partners.
28. Israel ranks third globally in VC investment per capita.
Tiny Country, Massive Impact
Israel may be small in size, but it ranks third in the world for venture capital investment per capita. That’s no coincidence. A culture of innovation, military R&D, and global market thinking has made Israel a startup superpower.
In sectors like cybersecurity, AI, agritech, and deep tech, Israel consistently punches above its weight. Many startups exit early through acquisitions or expand quickly to the U.S. and Europe.
Winning Moves for Israeli Founders
If you’re building in Israel, you’re part of a globally respected ecosystem—but expectations are high.
- Lean into technical strength. Investors expect cutting-edge solutions, especially in B2B.
- Build globally from the beginning. Most successful Israeli startups enter foreign markets early—make this part of your strategy.
- Join top accelerators and hubs. Programs like The Junction and hubs like SOSA can open major doors.
You should also be very clear on your funding roadmap. Many Israeli startups scale through multiple early exits—plan accordingly, and know when to grow versus when to sell.
29. Canada’s VC funding per capita surpassed that of the U.S. in Q4 2021.
Canada Quietly Overtaking in Capital Efficiency
Canada made headlines when, in Q4 of 2021, its VC funding per capita overtook the United States. That means that, adjusted for population, Canada was receiving more venture investment than the U.S. at the time. It’s a surprising stat—but one that reflects growing investor confidence in Canadian innovation.
Cities like Toronto, Vancouver, and Montreal have cultivated diverse, disciplined startup ecosystems. With government grants, immigration advantages, and quality education, Canada is a fertile ground for scalable tech.
How Canadian Founders Can Keep the Edge
If you’re building in Canada, make the most of the country’s momentum.
- Emphasize capital efficiency. Investors appreciate Canadian startups for their low burn and strong unit economics.
- Highlight government support. Programs like SR&ED and IRAP provide a boost that few U.S. founders can match.
- Target cross-border expansion. Investors love seeing Canadian companies make early inroads into U.S. or EU markets.
Don’t let modesty hold you back. Canada’s startup story is getting louder—and there’s room for many more founders to step into the spotlight.
30. Startups in emerging markets saw a 60% higher growth rate in early-stage VC funding between 2020 and 2023 compared to mature markets.
The New Frontier: Emerging Market Momentum
From Africa to Southeast Asia, emerging markets are growing their startup ecosystems faster than ever. Between 2020 and 2023, early-stage VC funding in these regions grew 60% faster than in mature markets like the U.S. and Europe.
What’s driving this growth? Huge unmet needs, mobile-first economies, young populations, and increasing internet access. These markets are leapfrogging traditional models and building startups that serve billions.
Founders in Emerging Markets: How to Ride the Wave
This is your moment—but execution matters.
- Build for real problems. Solve issues like access to credit, transportation, education, or healthcare.
- Structure smart. Many investors want U.S. or Singapore holding companies for legal clarity—set it up early.
- Tell a bigger story. Investors aren’t just funding local businesses—they’re funding the infrastructure for future growth.
Also, work with ecosystem builders. From Google for Startups to local hubs like Nairobi Garage or Startup Chile, these groups can offer mentorship, exposure, and investor access.
Conclusion
The VC world is shifting. What used to be centered in a few coastal cities is now spreading across the globe—from Miami to Bangalore, from Tel Aviv to São Paulo. This isn’t just about capital. It’s about power, influence, and opportunity.
