In the inaugural edition of Start-Up Genome's Scaleup Report, India secured the fourth position globally in terms of the number of scaleups or start-ups that have garnered more than $50 million in disclosed venture capital (VC) investments. In a survey encompassing 12,400 start-ups, India secured the fourth spot with 429 scaleups, following the United States (7,184), China (1,491), and the United Kingdom (623). Notably, India outpaced the United Kingdom in both the total venture capital (VC) investment injected into these scaleups and the cumulative technology value investment of scaleups.
According to the report, India recorded 429 scaleups, attracting $127 billion in VC investments and accumulating a total tech investment value of $446 billion. A survey spanning over 80 cities in over 40 countries, analysing more than 60 metrics, was conducted by Startup Genome which is an advisory and research firm. According to the report, India boasts start-ups that serve more than 50 per cent of their customer base from beyond their continent, and it holds the top position for the highest scaleup rate.
Start-ups with a local connectedness index score of six or above achieve a scaleup rate of 5.1 per cent compared to 3.8 per cent for those with a score of two to four — a 34 per cent rise. The local connectedness index measures the size, density, and quality of a start-up's local network. Early-stage start-ups with a higher local connectedness index witness revenue growth twice as fast as those with a lower local connectedness index, according to a report in The Times of India.
Of all the scaleups, start-ups established between 2006 and 2016 make up more than 50 per cent, with the most substantial group being those founded between 2013 and 2016, totaling 3,700 scaleups. According to the report, about 4,100 scaleups, which amounts to 33 per cent of the total, were initiated by serial entrepreneurs.
The bio pharma sector holds the top position worldwide in terms of the number of scaleups, boasting more than 1,800 scaleups, while the Fintech industry closely follows with a global count of 1,700 scaleups.
North America is home to the majority of global scaleups, with 7,500 of them, representing 60 per cent of the total, the report added. Within the European Union, there are 990 scaleups, constituting 8 per cent of the global scaleup count, with 623 of them being located in the UK. Moreover, there are 65 scaleups originating from or currently situated in Africa, along with 103 scaleups established in or presently operating from Australia or New Zealand.