The global startup landscape is undergoing its most dramatic shake-up in recent years. According to the GSER 2025 (Global Startup Ecosystem Report), while Asian and African markets are surging ahead, ecosystems in Europe and North America are facing severe stagnation. In the Global Top 40 ranking, 16 ecosystems improved their positions, whereas 18 suffered a decline.
In this article, we analyze the most crucial facts about the current state of the global market, key figures, and future trends for Pivot.uz readers, venture investors, and startup founders.
1. The crash in ecosystem value (EV) and the venture crisis
Ecosystem Value (EV) represents the sum of startup valuations and exits over the last 2.5 years. In 2025, global EV plummeted sharply by 31%.
- The state of the Top 20: The median EV of last year’s top 20 ecosystems dropped by 24%. Only three cities—Beijing, Los Angeles, and Tokyo—showed positive growth. Paris remained stable, while all other cities saw a decline.
- Early-stage crisis: Since late 2022, early-stage funding (Seed and Series A) has contracted sharply in both deal count and volume.
- The historical reason: This situation is partly linked to the 2021 “bubble.” That year saw a record 682 new unicorns (compared to 165 in 2020), and the average exit value jumped to $233 million from $99 million in 2020. Today, startups are struggling to justify those artificially inflated valuations.
- Exit struggles: Large exits exceeding $50 million decreased by 31% in the Top 40 ecosystems and by 40% globally.
2. Artificial Intelligence (AI): The Engine of a New Era
The SaaS model is coming to an end—just like when Netscape emerged in 1992 and pushed out traditional software. AI is no longer just a sector; it is becoming the foundation of every startup.
- Capital concentration: Currently, 90% of global AI funding is concentrated in the US and China. These two countries also control 56% of the global ecosystem value.
- The new direction of venture capital: Last year, VC funding directed at AI and Big Data startups grew by 33%. Today, 40% of all global VC investments are pouring into this exact sector (up from 26% in 2021). Series A rounds for AI startups are on average twice as large as those in other sectors.
- Leaders and chasers: Silicon Valley maintained absolute leadership, attracting over $30 billion to AI-Native startups in 2023-2024. But Beijing is closely trailing with a $5 billion investment. While the number of AI startups in Paris, Delhi, Istanbul, and San Diego has doubled in the last 3 years, AI-focused investments in Toronto, Shenzhen, Shanghai, and Mumbai have grown 10-fold.
3. The Battle of Sectors: Winners and Losers
Changes in the capital market have clearly shown which sectors represent the future and which are facing a crisis:
- Growing sectors: Life Sciences showed a +17% investment growth, and Cybersecurity +4%. Funding in the Blockchain sector remained stable at 0% in 2024.
- Declining sectors: Edtech (Educational Technology) investments shrank by -57%, and Cleantech (Clean Energy) by -40%. Specifically, Cleantech attracted $13 billion in 2024 (down from $28 billion in 2022). The AdTech and Digital Media sectors are also going through tough times.
4. Regional Disparities and the Top 40 Ranking
The decline in EV varied across continents. Asian and African continents suffered the least (-17%). North America recorded an -18% drop, Oceania -19%, MENA (Middle East and North Africa) -22%, and Europe -24%, while the steepest fall hit Latin America (-45%).
Major shifts in the Top 40 ranking:
- London dropped to 3rd place for the first time since 2019 (overtaken by New York).
- Boston returned to the Top 5.
- Paris climbed to 12th place, driven by early-stage deals and the number of unicorns.
- Philadelphia made an unbelievable jump of 35 spots over the last 5 years (and 12 spots this year alone) to reach 13th place.
- Hong Kong leaped directly from the Emerging list to 27th place in the Top 40. Bengaluru moved up to 14th (+7).
- All Chinese cities advanced: Beijing (5th), Shanghai (10th), Shenzhen (17th), Hangzhou (23rd), and Guangzhou (35th).
5. Strategic Government Policy: Why Are Some Growing Faster?
An ecosystem does not develop on its own. According to Startup Genome, EV growth in regions implementing advanced policy decisions was 46% faster than others (adding an extra $1.4 billion in value annually).
- Seoul directed $1.4 billion towards startup initiatives over 4 years and jumped 12 spots in the ranking.
- Israel (Tel Aviv) competed with cities 10 times its size and climbed to 4th place in the ranking.
- The UAE (Abu Dhabi and Dubai) is consolidating its leadership in the MENA region.
6. Startup Events as Business Infrastructure
Major events like VivaTech, Web Summit, and TNW are not just about “networking”—they are real catalysts for economic growth.
- The Lisbon experience: By attracting the Web Summit, meaningful connections between Lisbon startups and international players tripled. Between 2016 and 2020, early-stage funding in the city more than doubled.
- The Paris experience (VivaTech): This event, attended by over 3,200 international investors, serves as a platform for direct contracts between startups and corporations like LVMH and AWS. Most startups generate 25-60% of their annual leads (clients/partners) exactly during this 4-day event.
The era of organic growth in the global startup industry is over. In today’s competitive arena, only those ecosystems that adapt to Artificial Intelligence, rely on clear government policies, and can integrate their market internationally will survive.
