Startups: The Ecosystem and How They're Funded · Part 12 of 19
Startup Geographies
Capital moves globally, but reputations still cluster locally.
Venture capital is no longer concentrated in a single place the way it was decades ago. Capital, talent, and remote work have spread startup activity across the world, and a strong company can get funded regardless of where it's based. Certain regions have still built up specific reputations over time.
| Region | Known for |
|---|---|
| San Francisco / Silicon Valley | The largest concentration of venture capital and technical talent, especially in software and AI |
| New York | Fintech, media, and enterprise software, alongside a large finance industry to draw talent and capital from |
| Boston | Biotech, life sciences, and deep tech, closely tied to its research universities |
| Austin | A growing hub as companies and talent relocate from higher-cost coastal markets |
| Los Angeles | Consumer, media, and entertainment-adjacent technology |
| London | Fintech and one of the largest venture markets in Europe |
| Paris | A fast-growing deep tech and AI research scene, backed by strong government support for startups |
| Berlin | Consumer internet and enterprise software, with a lower cost base than many other major hubs |
| Tel Aviv | Cybersecurity and deep tech, drawing heavily on a strong military-technology talent pipeline |
| Toronto | AI research strength, tied closely to its universities and research labs |
| India | A massive domestic market and a fast-growing base of both consumer and enterprise software companies |
| Southeast Asia | Mobile-first consumer products and fintech, serving large, rapidly digitizing populations |
| Latin America | Fintech and e-commerce, addressing large unbanked and underserved populations |
| Middle East | Growing sovereign-backed investment activity and an expanding local startup scene |
Where the money goes
Funding is more concentrated than reputations suggest. In 2025 the United States took about 64.5% of the roughly $425 billion invested globally, and the Bay Area alone took 42%.
| Region | 2025 funding | Share of global |
|---|---|---|
| US West (Bay Area, Los Angeles, Seattle) | $178.6B | 42.0% |
| US East (New York, Boston) | $41.5B | 9.8% |
| US central and other (including Austin and the DC area) | $53.9B | 12.7% |
| US total | $274.0B | 64.5% |
| Europe | $58.0B | 13.6% |
| Asia (including Israel) | $67.5B | 15.9% |
| Rest of world | $25.5B | 6.0% |
| Global | $425.0B | 100.0% |
A founder in one region can raise from an investor on another continent, and remote and hybrid teams have made location less deterministic than it used to be. Geography still shapes time zone overlap with investors, access to a specific talent pool, and the local regulatory environment, and it's one input among many.