In a surprising shift, the recently released 2023 Startup Heatmap Europe report has revealed that London has overtaken Berlin as the most popular destination among European tech founders. The report, compiled by DEEP Ecosystems, a leading Ecosystem Acceleration Company, provides valuable insights into the preferences and mobility patterns of startup founders in Europe.
Luxembourg ranks 29th out of 50 cities listed
In short, London has overtaken Berlin as the most popular destination for European startup founders, according to the 2023 Startup Heatmap Europe report by DEEP Ecosystems.
The report shows London and Berlin tied at 34%, ahead of Barcelona and Amsterdam at 17%. Paris follows with 12%, and Luxembourg’s position is not mentioned in the top 10.
The report highlights startup mobility, with 31% of founders coming from abroad and 61% relocating for accelerator programs. The study also provides strategies for city policymakers and emphasizes the importance of collaboration and openness to attract digital nomads and international entrepreneurs.
Top 10 friendly startup hubs in Europe
For the past five years, London, Berlin, and Barcelona have consistently remained the top three choices for startup hubs. However, this year, London has regained its position at the top, having been edged out by Berlin in the previous year.
Both London and Berlin now hold an equal share of 34% of founders choosing them as their favorite destination, creating a substantial lead over Barcelona and Amsterdam, both at 17%. Paris follows closely behind with 12%, and Lisbon holds 10%. Other notable cities in the top 10 include Munich, Tallinn, Stockholm, and Zurich.
The Startup Heatmap Europe report offers valuable insights beyond the popularity rankings. It highlights the hyper-mobility of startups in Europe, revealing that 31% of founders come from abroad, showcasing the international nature of entrepreneurship in the region.
Additionally, 61% of startup teams have relocated to participate in accelerator programs, emphasizing the importance of these programs in fostering growth and innovation. An astonishing 74% of startups have a presence in more than one country, highlighting the widespread global reach of European startups.
A support for decision makers
The report also provides guidance for regional policy-makers, offering three distinct strategies to ensure economic prosperity for their cities. The strategies, categorized as Growing Entrepreneurs, Accelerating Startups, and Scaling Unicorns, are accompanied by a ranking of the best-performing cities in each category.
For example, in terms of growing entrepreneurs, Milan, Brussels, and Tampere take the lead, while London, Berlin, and Zurich excel in accelerating startups. When it comes to scaling unicorns, London achieves a perfect score of 100%, followed by Paris and Berlin.
Thomas Kösters, CEO of DEEP Ecosystems, summarized the report’s findings by emphasizing the need for collaboration in an interconnected ecosystem, where both large and small hubs can benefit from each other’s success. Europe’s attractiveness for startups is evident, but Kösters highlights the importance of equitable distribution and the adoption of strategies that embrace failure, diversity, and openness to attract digital nomads and international entrepreneurs.
A must-read document
The Startup Heatmap Europe report, published annually since 2016, stands as Europe’s most comprehensive study on the development of startup ecosystems and founder mobility. It analyzes over 100 cities in Europe, drawing insights from a survey among European founders and extensive data points on ecosystem dynamics such as investments, community meetups, and accelerators. The report’s longevity and thoroughness make it a highly trusted resource for understanding founder sentiments, comparing the US and Europe, and assessing the future prospects of local startup hubs.
Accompanying the report is a data platform and a downloadable 100-page document, providing further information and resources for ecosystem builders. To access the report and learn more about the data and courses available, visit the official website at www.startupheatmap.eu.
