Global VC Hotspots: A Look at Top Growth Cities

Report | May 6, 2024

Image: Pitchbook Top VC Cities Overall by Development and Growth score (Q3 2017 to Q2 2023)

Calgary Among Pitchbook's 'Growth' Top 20 Global VC Ecosystem Rankings (Last 5 Years)

The latest PitchBook Analyst Note, "Global VC Ecosystem Rankings,"ranks cities on two main scores providing insights for investors and founders looking at emerging and developed VC landscapes. These scores are derived from proprietary data, considering factors such as deal value, exit value, and fund count. Development scores reflect the size and maturity of the ecosystems, emphasizing regions with extensive capital activities and high-value exits. Growth scores, on the other hand, assess the rate of change in these activities, highlighting emerging areas that could promise higher returns.

Top 10 Cities by Overall Score (Q3-2017 to Q2-2023)

See: AI Metamorphosis in Venture Capital

Here's the Global VC list of the top 20 cities ranked by Overall Score per Pitchbook proprietary data.

North America 40%
Asia 40%
Europe 20%

Location	Region	Development Score	Growth Score	Overall Score
San Francisco	North America	89.4	18.9	68.3
New York	North America	75.8	44.9	66.5
Shanghai	Asia	71.7	41.8	62.7
Los Angeles	North America	70.8	34.4	59.9
London	Europe	63.2	49.9	59.2
Beijing	Asia	74.9	18.7	58.0
Boston	North America	70.4	28.9	58.0
Berlin	Europe	51.8	71.8	57.8
Shenzhen	Asia	61.2	43.4	55.9
Seoul	Asia	59.0	47.2	55.5

Top 20 Cities by Growth Score (Q3-2017 to Q2-2023)

Now, here's a look at the Global VC list of the top 20 cities ranked by Growth Score which is based on several factors, including:

See: CVCA Publishes ‘The 50’, 3rd Guide to Canada’s VC Ecosystem

This includes the number of new venture capital deals and the overall volume of investment in recent periods compared to historical averages.
The score considers the increase in the value of exits, which can indicate a maturing ecosystem that is beginning to yield substantial returns.
An increase in the amount of funds raised and the number of new funds successfully closed also contribute to the Growth Score.
Changes in the local or regional economic environment that favor venture capital activities, such as supportive government policies, a surge in tech innovation, or the establishment of startup accelerators.

The Growth Score highlights cities that are experiencing rapid development in their venture capital sectors, suggesting a dynamic environment for investors and entrepreneurs. It provides an indicator of where the VC ecosystem is not only active but also expanding measurably. For comparison, here Bloomberg CityLab ranked the Top U.S. 20 cities in venture capital back in 2021 post-covid.

Post-Covid U.S. Tech Economy: Top 20 Cities Venture Capital 2021

Most notably, Calgary ranked 12th on the Growth Score, the only Canadian city to do so, according to Pitchbook analysts.

City	Region	Deal Count	Exit Value (Billion $)	Exit Count	Fund Value (Billion $)	Fund Count	Growth Score
Dubai	Middle East	815	3.7	35	1.5	20	72.8
Detroit	North America	694	3.7	63	1.1	34	72.5
Berlin	Europe	2,293	13.4	256	8.8	85	71.8
Raleigh	North America	1,016	6.5	85	1.6	32	71.3
Houston	North America	934	4.4	88	1.2	41	70.3
Nanjing	Asia	1,289	14.7	31	12.9	171	69.6
Madrid	Europe	987	0.3	69	1.9	39	69.5
Milan	Europe	679	0.7	70	1.6	37	69.3
Tallinn	Europe	559	0.2	20	0.4	10	67.1
Vienna	Europe	490	1.3	42	0.7	15	66.4
Istanbul	Europe	681	2.9	26	0.3	16	66.0
Calgary	North America	422	0.4	22	0.1	7	65.4
Changsha	Asia	378	10.1	23	3.4	45	65.1
Gurgaon	Asia	516	0.8	31	0.2	5	63.8
Indianapolis	North America	540	0.6	47	0.3	20	62.5
Miami	North America	1,975	10.6	116	5.7	109	60.5
Philadelphia	North America	2,367	10.9	172	2.2	54	58.1
Sao Paulo	South America	1,532	37.3	145	3.4	75	57.7
Lyon	Europe	338	0.2	23	0.2	5	57.2
St. Louis	North America	389	1.5	42	1.1	27	56.9

Regional Breakdown of Top 20 Growth Cities

North America: 8 cities (40%)
Europe: 7 cities (35%)
Asia: 3 cities (15%)
Middle East: 1 city (5%)
South America: 1 city (5%)

Conclusion

According to Pitchbook, these rankings highlight the cities that are spearheading innovation and growth, making them pivotal arenas for venture capital investment and startup development in the coming years.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org