Where are the most fertile ecosystems for software startups around the world? A new study by our business software discovery platform, Crozdesk, analyzed 19,188 currently operating SaaS, PaaS, IaaS, and enterprise software companies, as well as 20,883 rounds totaling $134 billion in funding to determine statistically relevant patterns of regional development.
The United States remains largely unrivaled with 63% of companies globally and nearly 89% of the startup funding in the cloud and software sectors. However, as the US market is becoming more saturated US vendors are increasingly looking to expand into Europe and Asia
Europe, a distant second, is showing increased velocity with a great number of emerging companies focussed on the space. In 2017 it was home to 22% of the world’s cloud companies, but only 5% of funding.
Silicon Valley – home to 16% of the world’s cloud and software companies – remains the ultimate powerhouse with nearly 39% of the world’s funding and rapid growth rates. It is followed by New York, Southern California and Boston.
London (5th) and Tel Aviv (8th) are the only non-US clusters in the top 10, driven by their SaaS startup movements.
For further analysis of software ecosystems and startups, download the full “SaaS and Cloud Startup Report 2018” on the Crozdesk web site.
Nicholas Hopper is CEO of Crozdesk.