Packing it all in and launching your own startup will be one of the most brutal and difficult things you could ever do. It’s common knowledge that more than 50% of startups fail within the first year, with that number going as high as 90% within the first five years. This can be a daunting prospect for those who are eager to launch the tech company of their dreams, but it should be known that there are ways to mitigate this.
One of the best ways to bolster your tech startup is by choosing the right country to base it in. There are some countries that are much better than others for launching a tech startup, with access to funding, local markets, government assistance, and talent pools being far superior in just a few select countries. Where you are is more important than ever before, so here are the top five countries for tech startups in 2020.
Best Countries for Tech Startups Right Now
While initial costs and barriers may not be the best, the US ranks highly simply due to the massive amount of resources, capital, and talent available to new tech startups. Basing your new business in Silicon Valley or New York will give you access to the largest tech companies and expertise in the world, with the opportunity to have tech giants such as Google, Uber, Airbnb, Amazon, and PayPal as your neighbours.
While the levels of bureaucracy in Sweden may be high, the country has proved to be a magnet for successful startups in recent years. A number of companies that started here have gone onto becoming global names, such as the music streaming company Spotify and the online gaming platform Mr Green. Transparent business processes and low levels of corruption also make this place a winner.
In spite of uncertainty surrounding Brexit, the United Kingdom remains by far the European leader for attracting tech startups, with the number of new tech companies registering in the UK jumping by 60% last year. The UK is one of the easiest countries in the world to do business in, as well as one of the cheapest – registering your company here only costs about $15, compared to over $500 in the US.
The Nordic nation of Finland has long been a leading hub for tech talent. The country ranks first in the world in terms of technological readiness, meaning that any new tech business will have access to all the resources they need to thrive. The country also hosts the world’s largest tech startup festival, Slush, which has boasted the heads of Google, Spotify, Apple and Tencent as speakers.
While China has one of the largest numbers of tech companies, Hong Kong is the best place to set up a business as an outsider. The tiny state ranks first in the Ease-of-Doing-Business Index and has a government which actively seeks to offer low-interest loans and advice to any tech startups that choose Hong Kong as their home.
In an increasingly globalized world, it has never been easier to choose where to do business. The startup game might be risky, but the right destination can make all the difference.