Global innovation policy research and consultancy firm Startup Genome launched the 2021 edition of the Global Startup Ecosystem (GSER) report, in which the Sri Lankan startup ecosystem was presented along with key information and its way forward after working closely with Sri Lanka ICT Agency as the country validating the study.
Published each year, the report analyzes 280 entrepreneurial innovation ecosystems and 3 million startups and includes the ranking of the 140 main ecosystems in the world, a breakdown by continent with regional information.
The GSER is widely known as the most comprehensive and widely read research on global startups.
The Sri Lanka Information and Technology Agency (ICTA), through a membership agreement with Startup Genome, has been working together since 2016 to explore the untapped potential of the local startup ecosystem and find ways to leverage it. develop.
Exploring the Sri Lankan startup ecosystem in 2021, the report highlights that the ecosystem is changing rapidly and steps are being taken to nurture local talent, improve the business climate, and foster international connections that bode well for long-term ecosystem.
The report points out that Sri Lanka is ranked second in the region for ease of starting a business, given recent developments and new laws designated for the port city of Colombo as a special economic zone and the government’s assent for establish five new technology parks around the island and international collaborations for the financing of startups. The rapid growth of the ecosystem is supported by government incentives and timely measures to strengthen the ecosystem.
The report highlights the strengths of sub-sectors such as Cleantech and Agtech and New Food sectors highlighted for their talent density, supportive resources and start-up activities as key drivers of economic growth.
The rapid growth of the stock market, the reduction in corporate income tax and the knowledge-driven economy, as well as the # 3 ranking in the Asian region for affordable talent and in the top 30 ecosystems Asians in Bang for Buck are some of the reasons cited for a startup to relocate. in Sri Lanka.
Among the key findings of the report, the total value of the Sri Lankan startup ecosystem in 2021 growing by 13% over last year, during the pandemic and creating $ 132 million, total seed funding – $ 26 million. , Series A median series – US $ 1.06 million, startup median series – US $ 50,000 and software engineer salary – US $ 6,000.
“Sri Lanka is implementing a holistic and reliable approach to develop our ecosystem of startups. Provision of infrastructure through cutting-edge technology parks, startup-friendly laws and policies, creation of a venture capital fund, entrepreneur visa, facilitation of regional startup hubs are some of the many initiatives that will be implemented. works in our development of startups. strategy. ” said Jayantha De Silva, secretary of the Ministry of Technology.
“According to the findings of the Global Startup Ecosystem (GSER) report, the growth and overall performance of Sri Lanka’s startup ecosystem have been affected by the pandemic.
“However, as a facilitator of the development of tech startups in Sri Lanka, ICTA will continue to work closely with Startup Genome alongside strong collaboration between local and global organizations to strengthen and accelerate the startup ecosystem in the world. country, ”said Oshada Senanayake. , President of ICTA.