Blockchain, artificial intelligence (AI) and big data are few of the fastest growing startup sub-sectors globally, attracting high early-stage funding deals over the last five years, according to a new report by market research firm Startup Genome.
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Deep tech, a term that includes advanced manufacturing and robotics, blockchain, AI, and big data, remains the fastest growing group globally. Fintech has also experienced substantial growth in last five years, the company noted in a report titled ‘The Global Startup Ecosystem 2021’.
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Five sub-sectors — agtech, blockchain, advanced manufacturing and robotics, AI and big data, fintech — are growing in size at an astounding pace, with an average 107% rise in early-stage funding deals and 43% growth in exits. AI, Big Data and Analytics is the largest sub-sector, comprising nearly 27% of all global startups, the report added.
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Other sectors like cybersecurity, edtech, cleantech, and gaming are maturing at significant rates, seeing a collective growth of 33% in Series A funding and 3% exits over the past five years.
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India’s startup hub Bengaluru secured the 23rd spot among 40 countries assessed in the report, based on performance, funding, connectedness, market reach, knowledge and talent. Silicon Valley, London and New York City secured the top spots, the report noted.
Bengaluru performed strongly in terms of funding access, indicating how lucrative the market is for funding volume and growth. Other points favouring Bengaluru include local connectedness, tech knowledge and talent, the report added. Mumbai continued to be the top emerging ecosystem for startups based on funding, performance, talent and experience.