The 2024 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network launched on June 10 at London Tech Week. The GSER, powered by the world’s most quality-controlled dataset on startup ecosystems, analyzes data from over 4.5 million companies across 300+ entrepreneurial innovation ecosystems. It provides compelling new insights and deep knowledge about startup trends around the world and ranks the Top 40 global ecosystems, emerging ecosystems, and an expanded regional ranking.
Georgia’s Innovation and Technology Agency (GITA) has teamed up with Startup Genome to spotlight Georgia’s entrepreneurial ecosystem in the #GSER2024 –
• Business-friendly regulation: With the world’s third-lowest total tax and contribution rate on profit at 9.9% and corporate income tax levied only on distributed profits, Georgia offers an enticing landscape for startups to flourish. GITA offers Startup Matching Grants of up to $60,000 and Innovation Grants for Regions of up to $10,000, aiding new ventures. Additionally, special tax regimes for international IT companies have attracted more than 120 companies. The Association Agreement with the EU, including visa-free travel and a free trade area, further enhances Georgia’s appeal to entrepreneurs and investors.
• The global blockchain company Tether is driving innovation through strategic investment: One of the most prominent players in the Georgian startup scene is Tether, an international blockchain giant with a net profit of $4.52 billion in the first quarter of 2024. Tether has invested $25 million in the Georgian ecosystem, covering the entire CIS region from its Tbilisi office.
• Significant investments in Georgia’s education system to enrich the country’s startup ecosystem: GITA funds university labs and collaborates with top universities in Georgia, establishing new educational courses, pre-acceleration programs, hackathons, or tech boot camps with them.
• Entrepreneurial support: The Georgian startup ecosystem also benefits from the presence of an active angel investor network, Axel – Georgian Angel Investor Network, which is a member of the European Business Angel Network and the Global Business Angel Network. The recent partnership between GITA, the Bank of Georgia, and 500 Global, a world-renowned accelerator and venture capital firm, is a testament to the growing appeal of the Georgian startup ecosystem among the international community.
• 500 Global in Eurasia: 500 Global has rebranded its accelerator program in Georgia to “500 Global in Eurasia,” reflecting its commitment to nurturing startups across the region. In partnership with GITA and Bank of Georgia, 500 Global has successfully accelerated over 70 startups across five batches since 2020. The sixth batch of the program will feature nine tech startups from six countries, focusing on web3 investment, AI-powered talent acquisition, and educational technology.
• Attracting global collaborators and driving innovation as a bridge between Europe and Asia: GITA has recently announced significant developments and initiatives to foster the growth of the Georgian startup ecosystem as part of its “GITA 20.0” program. These initiatives include launching new early-stage acceleration programs, additional tax incentives for innovative startups and SMEs, establishing Excellence Centers in priority technology areas, and creating a comprehensive digital platform called “Start Up in Georgia.” Additionally, GITA will offer new tax incentives, including 0% tax rates for innovative startups, 500% tax credits, and 30% cashback for innovative startups and SMEs.
“Georgia is becoming a destination of innovative talents, bright-minded entrepreneurs, and tech enthusiasts,” says Avtandil Kasradze, Chairman of GITA. “The message ‘Start Up in Georgia’ will be spread all over the world, soon. Our ecosystem offers a favorable business climate with access to finance, mentorship and infrastructure. Georgia is hosting dozens of community events, meetups, and conferences around the year, building a network of leaders from the most successful global ecosystems.”
The Report is driven by a consortium of representatives from 40+ countries and looks at the current state of startup activity and related investment, providing insights and guidance to public and private leaders on how to foster thriving startup communities — the #1 engine of job creation and economic growth. Contributions from expert thought leaders and local key players further enrich the report’s extensive, evidence-based findings, which are the product of over a decade of Startup Genome’s independent research and policy work.
“Startup Genome is excited to partner with GITA to highlight the entrepreneurial development within the Georgian ecosystem,” states Marc Penzel, Founder & President of Startup Genome. “The commitment to a business-friendly environment for entrepreneurs to build, develop, and launch their startups speaks to Georgia’s bold and promising future.”
Excerpts from the State of the Global Startup Ecosystem
• Series A funding amount in 2023 was down 46% from 2022, and the value of large exits ($50M+) fell 47% over the same period.
• Q1 2024 has projected higher Series A funding amount and deal count than Q4 2023, perhaps signaling a modest recovery for early-stage startup funding.
• The number of new unicorns in 2023 was down 58% from 2022 and 87% from the 2021 peak. Though the total number is down, China nearly doubled its global share of new unicorns, from 6% in 2022 to 11% in 2023. With 15 unicorns, Silicon Valley again led all ecosystems for the most new unicorns in 2023, though this was down 80% from 2022. The Tashkent, Lyon, and Rhineland startup ecosystems welcomed their first unicorns in 2023.
• In 2023, more than half of new unicorns were in the GenAI and Deep Tech sub-sectors, a higher rate than in 2021.
• Late-stage Cleantech startups raised 2.5x more funding in H2 2023 than in H1 2020. The U.K., France, and Germany combined overtook the U.S. and China in early-stage Cleantech funding, increasing their Series A funding amount by nearly 50% in 2023 compared to 2021.
• Generative AI (GenAI) saw a surge in funding, with nearly 20% of all VC funding in 2023 going to GenAI-focused startups. These startups were primarily concentrated in the U.S. GenAI VC funding increased 3x in 2023 compared to 2022. Deal counts nearly doubled.
• In 2023, the Series A funding amount share for Top 40 ranked GSER 2024 ecosystems was 65%, down from 79% for these ecosystems in 2019. Comparatively, the share of Series A funding amount for the Top 100 Emerging Ecosystems reached 19% in 2023 vs. 13% in 2019.
View the full report here – https://startupgenome.com/gser2024
ABOUT STARTUP GENOME
Startup Genome is the world-leading innovation ecosystem development organization, having worked with more than 160 economic and innovation ministries and public/private agencies in over 55 countries. We work to catalyze startup success and ecosystem growth and ensure that all cities and countries capture their fair share of the new economy. Our evidence-based ecosystem research, advisory, and scaleup programs are rooted in global experience with the world’s largest AI-curated startup dataset and proprietary instruments developed from over a decade of primary research.
