The current times have probably been the most exciting and the most rewarding time to be a founder. Around $3 trillion global startup economy, has a lot to offer the founders for the prevailing startup ecosystem.
This large amount of $3 trillion, is a 20% increase over the previous years. Going by these numbers the future of startup ecosystems across the globe indeed looks very promising.
The best players in the game
According to the Global Start-up Ecosystem Report 2020 (GSER 2020), the prestigious top 5 positions of the global ecosystems are taken up by,
- Silicon Valley
- New York & London
The top five position holders have remained the same to a large extent in comparison to previous years. London is the only new player in the top 5 positions of the list.
Covid-19 has made things difficult
The pandemic has undoubtedly made things difficult for the startup ecosystem. And if the start-ups hope to emerge at the other side unscathed, they will need all the help they can get.
Governments and other institutions must take proactive actions to ensure all the progress of the global start-up ecosystem isn’t lost.
The government should come to the rescue
These are difficult times for start-ups and without funding, they will not be able to survive this ordeal. Research suggests around 39% of start-ups around the globe haven’t received any help from their government and neither do they expect to in the future.
The governments that do have some relief measures usually come with strict eligibility criteria. Hence what is required are more inclusive policies that would help start-ups and stabilize the situation.
The human resource that has experience of working in the start-up world has to be retained. This includes necessary policies such as visa extensions, monetary help in terms of salary and wages, etc.
A real-life example would be when the United Arab Emirates extended the resident’s visas (without charging any additional fees) during the month of March 2020.
This was an attempt to retain foreign human talent in the difficult situation of Covid-19. The situation may seem bleak but if we look at history, we will find that in similar situations of crisis the start-ups were able to raise money.
In other words, these times hints about the similar expectations. Therefore, the importance of helping the start-ups is all the more required since these start-ups help create jobs which are in scarcity during this pandemic.
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Trends likely to be seen in the future of the global startup ecosystem
Innovation in documentation and procedures
We have seen in the past that different needs had lead to innovation in the documentation area with SAFE, and KISS. So, this trend is likely to continue and there might be more creative solutions coming up.
A more important role of the government
The government plays an important role in terms of funding and financing startups.
Increase in Tech Startups
According to research from the year 2015 to 2018, there was 20% increase per year in the investments being done in deep tech. And this pattern is very likely to repeat in the future as well in terms of more technology startups coming up.
The global start-up ecosystem has been nothing short of flourishing. However, the Covid-19 situation has created a roadblock. The start-ups will need all the support they can get to overcome this obstacle.
So, with the right policies supporting them and the entire start-up ecosystem coming together will ensure these difficult times are overcome easily.
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