A word from our CEO

2022 is the year of global startup ecosystem uncertainty. And that’s not necessarily bad, as it historically brings new opportunities and potential exponential growth in sectors and technologies.

First and foremost, our vision of an integrated and global startup ecosystem where hundreds of countries and thousands of cities are all playing on the same global playfield is not materializing. Some Startup Ecosystems are now fragmenting.

Some aspects of this trend are positive. Emerging regional hubs such as Singapore and Dubai are building technologies catering to their geographies. People around the world are now using solutions that were customized specifically for their tastes and local preferences, that were built by local entrepreneurs, instead of patronizing a handful of powerful global corporations. We love this.

However, we can’t ignore the negative implications of this separation. A few notable countries, such as China and Russia, have made a conscious decision to build closed-wall ecosystems decoupled from the global internet and digital economy. This usually happens due to geopolitical reasons and results in complete separation between startup ecosystems. Our ability to connect to each other globally, share information, and develop global solutions is devastated by this trend. The internet used to be a magical place where we could meet people from all over the world. It is now a place where we mostly meet people from our geopolitical block. Those we don’t meet cannot become our friends.

We believe countries that decide to isolate their startup ecosystems from the world will not thrive in the long term. If currently the cycle is leaning towards increased fragmentation, it will shift at some point, and those who have stayed connected will be in a much better position.

Countries, and each of us as digital citizens, that choose to stay connected to an open version of the Internet should also be careful not to isolate ourselves in a closed digital network. Human psychology encourages us to surround ourselves with like-minded people. Our political affiliation, place of residence, and financial status will vastly determine our digital tribes and identity. Let’s keep an open mind.

Beyond the psychology of ecosystems, there are some economic elements which currently challenge the growth of tech ecosystems around the world. Inflation, tech sector wage increases, company devaluations, and increasing interest rates will all challenge short term economic growth and make it harder to raise capital. For founders, it could mean a return to beautiful origins; the self funded bootstrapped path may become a necessity again.

In any case, the opportunities are immense as humanity transitions into a digital reality that, at times, seems more powerful and relevant than our physical identity. But make no mistake, your physical presence in the startup ecosystem is still a critical ingredient in your success. Use the post pandemic new normal to go out and connect with your fellow entrepreneurs (if your government allows). It just takes one human connection to completely change the trajectory of your business for the better. Zoom and the cloud are not enough.

To founders, our recommendation is always the same: Choose your startup ecosystem wisely as it greatly affects your chances of success. Where you are matters. You will never realize the price of being in the wrong ecosystem, since missed opportunities are hidden, but abundant if you pick the right place. If you are in the wrong ecosystem, leave it or lead it. Do not stay passively isolated in a place that is underperforming.

As for government ecosystem developers, our message stays the same as well: Working with dozens of you as our ecosystem partners has inspired us. Most of you have played your cards wisely and helped build outstanding startup ecosystems that are the engine of your present and future economic growth. However, some governments are much more timid, quietly watching the tragic brain drain of their most ambitious and talented citizens. The consequences to the well being of these communities and future economies are vast. Take action to build your startup economies and leverage your unique advantages. It’s never too late to start, so start now.

On a personal note, it is such a joy to work on a project that allows us to produce unique insights on the current state and momentum of thousands of startup ecosystems. There is no longer any need for permission and association from gatekeepers to make an impact in the world. May it stay this way.

This report is dedicated to all who have decided to build something new and needed in the world. You are the true champions of economic development and human progress. May you succeed, or at least have fun learning.

Eli David, CEO, StartupBlink

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