Emerging Ecosystem ranking 2023: Estonia is up 28 positions, Riga enters the list

Startup Genome has published its annual Global Startup Ecosystem Report 2023 that traditionally include Emerging Ecosystem 2023 ranking of 100. It is intended to reflect startup ecosystems at earlier stages of growth, which showcase high potential to be top global performers in the coming years. AIN.Capital shares the key points.

  • The top 100 emerging ecosystems are collectively worth over $1.5 trillion in ecosystem value. Copenhagen, Hong Kong, Detroit, Barcelona, and Dublin lead the Emerging Ecosystem 2023 ranking. Despite this, Europe is the most represented region in it and has expanded its share from 37% to 41% since last year.
  • 2022 was the second-biggest year overall for European VC activity after 2021. Although the amount of early-stage funding in Europe was down 15% from the year before, the average early-stage deal amount was up by 7%.
  • In 2022 the number of Series B+ deals fell by 11% and the Series B+ funding amount by 29%, from $67 million in 2021 to $48 million in 2022. However, during 2018–2022, Europe experienced a general 18% increase in Series B+ deal count and 160% in Series B+ amount.
  • It also experienced a 56% increase in early-stage deal amount over the same period.
Emerging Ecosystem
  • London remains #1 ecosystem in Europe, tying for the #2 spot with New York, and has the most companies valued over $1 billion in the region. This includes Wise, Deliveroo, and Revolut.

CEE emerging ecosystem

  • Estonian ecosystem has managed to move up an impressive 28 positions since 2022, reaching #10. This is thanks to the 100% increase in exits over $50 million, and the new inclusion of Pipedrive’s 2020 $1.5 billion buyout.
  • Riga, Latvia has entered the Emerging Ecosystem ranking for the first time and is currently in the 91–100 range. This is thanks in part to Printful achieving unicorn status by raising $130 million in 2021.
  • Romanian Bucharest ecosystem is currently at #8 in the ranking by the ecosystem value, having achieved $37 billion in value.
  • In Ukraine, a surprising number of startups have survived months of Russian attacks and even found ways to grow. Only 12% of all startups fully stopped their activity. 43% of startups expect growth in 2023 based on the results of 2022.