Silicon Valley remains the most dominant startup ecosystem in the world, according to a 2025 report by Startup Genome. As the leading platform for creating AI-native startups, it accounts for 22% of all such companies worldwide, far outpacing other ecosystems. Since the report was first published in 2012, the sector has seen a 33% increase in venture capital funding, with the latest value representing 40% of global transactions, up from 26% in 2021. This growth underscores the rapid pace of AI development.
New York City, tied with London for second place in 2024, topped the list, pushing London to third place. The report highlights thatnome seeds in cities like New York and Beijing (tied) are driving significant growth, while other regions, such as Los Angeles, Seoul, Singapore, and Shanghai, are leading in startup activity.
Key findings include the rise of life sciences and cybersecurity, each accounting for significant venture capital investments.ictorywell saw a 17% increase in total deals, while cleantech, once at $100 billion, now drops to $60 billion, down by 40%. Edtech, from $80 billion to $50 billion, shows a -57% decline, suggesting investors are seeking diversification by targeting different industries.
Among the top startups, Paris has moved from 100th to 12th to Number 12, fitting the recent valuation drop. Philadelphia, ranking at 13th in 2024, has also seen consistent growth. Bengaluru, in India, rose from 10th to 14th, bringing this city’s ecosystem to center stage. Seattle, a major global hub, moved from 15th to 15th, which is one spot ahead of its 2021 rankings. Hong Kong surged to Number 27 globally, surpassing emerging ecosystems in a bid to diversify its ecosystem equity.
The report notes that Asian and sub-Saharan African ecosystems, as well as Latin America, have been particularly affected by valuation trends, withtnumbers of ecosystem entries declining by 17%. In contrast, Europe saw only a 24% decline, while MNA regions, including the MENA zone, dropped by 22%, though North America and the.startTimeнец dropped by 18%. The drop in AI-native ecosystems across these regions has been particularly concerning, with one city, Delhi, leading by almost doubling in AI startups.
Gauthier, former co-founder and president of Startup Genome, highlights the importance of policies supporting AI startups during filmmaking and innovation. He argues that investing in AI-driven startups is more effective than purchasing infrastructure, as this creates sustainable value through cycles of creation and exit.
The study emphasized the critical role of reinventing human capital in ecosystems that haven’t maximized their potential. Startups that thrive in AI ecosystems are often innovative, but they must create value while tapping into new markets. The authors caution against the consolidation of established ecosystems, which could prevent more diverse growth.
One emerging ecosystem that stands out is Columbus, Ohio, which is joined by American cities like Nashville, Pittsburgh, Sacramento, and Tampa Bay. Global cities like Abu Dhabi and Bangkok, as well as Latin American cities like Bogotá and Chengdu, are leading the trend. One region, shown-specialty Petrolla, a data-driven social network founded by a Los Angeles, has attracted over 150 members and is leveraging this growth to achieve scaling.
As AI and other technologies evolve, ecosystems are competing to capture the benefits of AI-driven innovation. Investors and entrepreneurs globally are assessing whether these ecosystems can leverage their strengths to maintain or even accelerate revenue growth, all within the framework of prosperity, job growth, and a robust economy.
