STARTUP ECOSYSTEM ANALYSIS

A LOOK AT ACCELERATOR APPLICATIONS AND NATIONAL SUPPORT

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INTRODUCTION

ECOSYSTEM

INSIGHTS FROM ACROSS THE GLOBE

WHERE DOES STARTUPBOOTCAMP LOOK FOR STARTUPS?

WHICH COUNTRIES HAVE THE MOST DEVELOPED STARTUP ECOSYSTEMS?

WHAT DOES A TYPICAL STARTUPBOOTCAMP APPLICANT LOOK LIKE?

STARTUPBOOTCAMP

WHAT DO OUR TYPICAL STARTUPS LOOK LIKE?

HOW DO WE FIND OUR STARTUPS?

WHERE DO WE CONNECT WITH THE TEAMS WE ACCEPT?

HOW CAN YOU BOOST YOUR CHANCES OF BEING ACCEPTED?

THANK YOU

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INTRODUCTIONIT’S A STARTUP WORLD

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Startupbootcamp has been running programs around the world since 2010. In 2016, we selected startups for our programs on 3 continents. With the investment teams from 14 programs scouring the globe for the best startups around to accelerate, we have a bird’s eye view on startup ecosystems across the world. Our analysis is compiled from thousands of applications received by our accelerators, as well as data on VCs, universities, and other types of organizations that support entrepreneurship. We’ve created this analysis to better understand the startup hubs that exist across the world and the teams that apply to our programs.

We also hope that the report provides startups an insight into what we look for when we select teams to invest in. To this end, we’ve worked with ecosystem organizations who have helped to provide us with access to robust datasets. By referencing the invaluable data provided by these partners against our internal data, we’ve created this report to share some of our learnings.

Startup ecosystems are rapidly emerging and expanding across the globe. Peripheral technology, business, and startup support organizations provide valuable resources to early stage companies. They also serve as both leading and following indicators for identifying more developed hubs.

We received more than 6,000 applications from startups across 100 countries. We also ran events on 6 continents providing mentorship, resources, and connections to entrepreneurs. In 2016, our 300 strong team met with tens of thousands of people and worked with companies both small and large to find and accelerate our startups.

It shouldn’t come as any surprise that the Netherlands, United Kingdom, and United States field the majority of Startupbootcamp startups - we run multiple programs in each of these countries. However, foundational elements in each of these local ecosystem encourage innovation as well.

Initiatives such as the SIES tax credit in the UK reduce the amount of risk seed investors incur in investing in startups. Publications and events such as TheNextWeb in the Netherlands and TechCrunch Disrupt in the US provide a platform for startups to launch from and gain initial traction. And each of these countries boast at least 5 schools ranked in the top 200 worldwide for engineering programs, providing a stable stream of technical talent.

INSIGHTS FROM 14 ACCELERATOR PROGRAMS ACROSS THE GLOBE

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14 PROGRAMS OPENED FOR APPLICATIONS IN 2016

Indicates new program

TEAMS FROM 120 COUNTRIES SUBMITTED APPLIED

Netherlands

United Kingdom

United States

India

Italy

Germany

Spain

Turkey

Poland

South Africa

18

17

12

7

7

6

6

4

4

4

294

496

590

411

360

290

261

253

97

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City Cohort Teams Applications

FINTECHNEW YORK

FINTECH | INSURTECH IoT DEVICES

LONDON

DIGITAL HEALTHMIAMI

IOT & DATABARCELONA

FOODTECHROME

FINTECHSINGAPORE

MENAISTANBUL

TRANSPORT & ENERGY

BERLINDIGITAL HEALTH

ECOMMERCE | SMART CITIES

AMSTERDAMFINTECH & CYBER

In an effort to both find startups for our programs, as well as provide support for startup ecosystems across the world, we ran 266 mentorship events in 53 countries in 2016, nearly double the amount we ran in the previous year. More than 10 events were hosted in the USA, Germany, Spain, India, and the UK.

We saw a dramatic increase in the amount of events we produced in North and South America, as well as Central and Eastern Europe. With the opening of 2 new programs in Asia since this analysis, we expect to see quite a surge in applications from, and an increase of events in the APAC region in 2017.

Startupbootcamp also sources a large portion of their teams at major conferences and industry events. In 2016, we attended more than 40 including Pioneers Festival in Vienna, RISE in Hong Kong, and Wolves Summit in Warsaw.

While many accelerators and investors use events to simply filter teams into their programs, Startupbootcamp aims to create a true mentorship environment that can produce valuable relationships. Teams that attend our FastTrack events are 2 times more likely to be accepted into one of our acceleration programs.

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WHERE DOES STARTUPBOOTCAMPMEET STARTUPS FOR OUR PROGRAMS

APPLICATION NUMBERS INCREASED BY 50% IN 2016Number of applications per program:

Number of mentorship events:

2015: 218

2016: 429

2015: 133

2016: 266

2015: 67

2016: 102

2015: 29

2016: 45

Number of cities visited:

Number of conferences attended:

WE RAN MENTOHRSHIP EVENTS ON EVERY CONTINENT IN 2016

+97%

+100%

+52%

+55%

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United StatesUnited KingdomGermanyCanadaFranceIndiaSpainNetherlandsIsraelAustraliaChinaItalySingaporeSwitzerlandBrazilSwedenJapanFinlandIrelandBelgiumMexicoRussiaDenmarkAustriaTurkey

0 25 50 75 100

Late Stage ScoreEarly Stage Score

In order to better understand where around the world startup hubs are emerging, we decided to collate our data from applications to study it on a country-by-country basis. We processed over 100,000 startup related data points from applications to our programs, and from CrunchBase and other external sources.

To better conduct our analysis, we scored each ecosystem based off their support for startups at early stage and at late stage, which you can see in the bar chart to the right. The early stage score is based on the presence of seed investment, incubators, engineering schools, and hackerspaces. The late stage score is based late stage funding availability, exits, accelerators, and the presence of large technology companies in the country.

Generally, these scores were relatively balanced. A few countries, such as Australia, Brazil, Mexico, and Austria, see more support available to earlier stage startups relative to later. However, in many of the countries where more overall support is available such as the UK, China, Israel, and the Netherlands, we see support skewed towards later stage companies.

ANALYSIS OF GLOBAL STARTUP ECOSYSTEMS

TOP 25 COUNTRIES FOR STARTUP SUPPORT

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In 2015, we received around 3,000 total application to our programs and events. In 2016, that number nearly doubled. Even accounting for the addition of new programs, this marks a more than 50% increase in the amount of applications per program spot in our programs. Over 95% of teams have more than one team member, and the average funding raised prior to applying is now over €100,000. So how can a startup increase their chances of getting into one of our programs?

One of the most important criteria we look at is the founding team. A solid founding team with past industry experience, technical expertise, and the ability to make well-reasoned decisions is of the utmost importance to any investor. We generally like to see both extensive technical and industry-specific expertise on the founding teams for our vertical-focused accelerators.

However, being a solo founder, having a small engineering team, or being pre-revenue by no means eliminates your possibility of joining one of our programs. Past successes as a founder, a wealth of industry experience, a strong supporting team, or significant market or technical traction can significantly increase your chances of being accepted into one of our programs.

2016 PROGRAM TEAM AVERAGE STATS

MORE LATER STAGE STARTUPS ARE APPLYINGOVER 90% OF STARTUP APPLICANTS HAVE PROTOTYPES

Monthly Burn Rate Monthly Revenue Funding Raised

Employees Engineers Founders

€8,200 €7,000 €169,600

4.91 2.86 2.73

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As pre-prototype stage startups are generally still seeking product-market fit, they are less suited to begin rapid growth. Of the 138 teams in our programs in 2016, only 9 were at the idea stage. The teams that benefit the most from our programs are looking to scale their sales, business development, and operations. To accelerate growth-stage teams, many of our programs in regulation-heavy industries such as finance, healthcare, and insurance are oriented towards corporate partnerships.

As a result of this, many of the teams coming through our program are B2B focused, and much of the support provided in these programs is oriented around business development. Nevertheless, this is certainly not true across all our programs. Verticals in less regulated industries and more consumer driven sectors will often take a higher proportion of B2C teams. However, almost all our programs do take some consumer-facing startups in each cohort, particularly if there is a long term possibility of them working with corporates.

GETTING MORE COMPETITIVE We had a nearly 2X increase in applications from 2015 to 2016 to our programs. Still, this isn’t reason to be discouraged from applying to one of our programs or mentorship events. Our events can be a great way to build a relationship with our staff, create valuable connections, and increase your chances of being accepted into our programs.

FINDING STARTUPS AND MAKING CONNECTIONSAROUND THE WORLD

REFERRALS HAVE HIGHEST ACCEPTANCE RATE

Contacted by Startupbootcamp

Social Media

Referrals

Search

Conferences/Events

Press/Blog

30%

26%

6%

8%

14%

16%

HIGHER DEMAND FROM EMERGING MARKETS

High Performing City

Dublin Score: 41

London Score: 44

Sao Paulo Score: 45

IstanbulScore: 60

TbilisiScore: 52

NairobiScore: 40

New DelhiScore: 50

Kuala LumpurScore: 74

*This data is based on application data, program research, and external data from friends such as CrunchBase.

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Meeting us is a great way to learn more about what to expect from our programs, and to meet the people you will be working with to grow your business.

Our FastTrack events pair 10 startups with 10 expert mentors for a day of rotating mentorship sessions. While we run these events to meet startups for our programs around the world, we aim to make them as beneficial as possible to the startups in attendance.

By connecting startups with mentors from major corporates, investment funds, and high-growth tech companies, we are able to give a taste for what startups will gain in our programs.

IMPROVING YOUR CHANCES

You’re more than 2.5X more likely to get into one of our programs if you attend a FastTrack or Office Hours event. We ran these events in over 100 cities and 50 countries in 2016.

MOST OF OUR STARTUPS ARE DIRECT SALESWITH LAUNCHED PRODUCTS

DIRECT SALES IS PREFERRED REVENUE MODELATTRACTING PROTOTYPE/PRE-LAUNCH STARTUPS

Selection Day Accepted

0%

10%

15%

20%

30%

5%

25%

35%

40%

Audience Direct Sales Licensing Marketplace SaaSIdea Prototype Closed Alpha

Public Beta

Customer growth

(non revenue)

Customer growth

(revenue)

Applied

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Like most investors, we find many of our best applicants through referrals from alumni, mentors, partners, and sta at other accelerators, in the Startupbootcamp family or otherwise. Last year, 27% of our cohort teams came via referral from mentors, alumni, investors, and Startupbootcamp staff. When compared to the total applicant pool, we were nearly twice as likely to accept a startup we met through a personal referral.

Particularly, referrals from Alumni and Mentors have the highest acceptance rate. Alumni and mentors have an intimate knowledge of the curriculums of our program, so can also be informative to talk to as you explore acceleration options.

However, if you don’t have a referral, don’t be discouraged. Our teams of analysts and scouts also reach out to suitable startups directly. Attending one of our FastTrack mentorship events, or meeting us during one of our office hours sessions can also be a great way to get a leg up into the program without a referral.

So how can you meet someone who can give you a referral to one of our programs? Try reaching out to one of our alumni working in a similar space to you, or a mentor for one of our programs. If you’re polite and respectful in how you do so, they will likely be impressed by your hustle, and introduce you to program staff if they think you’d be a good fit.

WE PREFER TO FIND OUR STARTUPS VIA REFERRALFROM OUR NETWORK ARE KING

STARTUPBOOTCAMP 2016 SELECTION LESS THAN 3% OF STARTUPS THAT APPLY ARE ACCEPTED

Initial Filter

Virtual Eval

In-person Eval

Enters Program2.3%

5.3%

16.7%

138 Enter Program

320 Selection Interviews

1,000+ Video Interviews

6,000+ Applications

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Research the mentors, partners, and investors you will be meeting to better identify potential ways to collaborate.

Talk to our alumni when you’re applying. They can tell you what to expect in our programs, as well as provide a reference.

Attend one of our mentorship events. They’re a great opportunity to connect with potential mentors and create business opportunities.

We invest in people. Submit your application early and then spend time forming a relationship with the program team.

Answer the application questions thoroughly and honestly. The more information you provide, the easier it is for us to see if you’re a good t for our programs.

Our Selection Days and programs are intense. Be ready to join in-person to fully leverage the 100+ mentors, partners, and investors you will meet.

Top startups focus on outcomes. Understand why you want to join the program and what goals we can help you achieve.

Be firm and confident but open to input and feedback. You need to be able to effectively receive, filter, and incorporate advice.

HOW CAN YOU BOOSTYOUR CHANCES OF BEING ACCEPTED?

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Acknowledgements

We’d like to thank Keboola, CrunchBase, and RELAYTO/ for their help making this report possible. Without their technology, the data collection, analysis, and production necessary to create this would not be possible

About Startupbootcamp

Startupbootcamp is a global accelerator group with 19 industry-specific startup programs around the world. We partner with leading global brands to support the next generation of innovators. Since our founding in 2010, we have accelerated hundreds of startups with a cumulative market value of over €1billion.

For more information about Startupbootcamp

www.startupbootcamp.org

For media inquiries press@startupbootcamp.org

For other inquiriesinfo@startupbootcamp.org