< Previous74 JULY 2023 SITE SELECTION of four. Grab was the highest valued exit at $40 billion. The number of unicorns increased from 11 to 18, including Coda Payments, which raised a $690 million Series C round in April 2022. The ecosystem also experienced a 33% increase in the count of early-stage deals. Melbourne has also seen notable progress, climbing six places from the GSER 2022 to No. 33. A 43% increase in Ecosystem Value comes thanks in part to increased exits over $50 million and above $1 billion. The unicorn count increased by one to three total, with Fintech company Airwallex the highest valued at $5.5 billion. In Miami, the number of $1 billion+ exits increased from two to five from the GSER 2022, and the number of $50 million+ exits from 11 to 19. In large part due to MSP Recovery’s $32 billion IPO/reverse merger, Ecosystem Value increased by 160%. The count of early-stage deals also increased by 64.3% and the number of unicorns from five to seven, all helping take Miami up an impressive 10 places from the GSER 2022, to No. 23. Helping to demonstrate India’s increasing strength as a tech startup nation, Mumbai has risen five places to No. 31 since last year (tied with Salt Lake-Provo). Its number of exits over $50 million increased by 60%, with the highest valued online marketplace Nykaa’s 2021 IPO at $7 billion. The number of unicorns has increased from six to 15, contributing to a 57% boost in Ecosystem Value. Zurich’s recent performance has also been impressive, rising a remarkable 10 places from last year and making it to the runners-up, at No. 36. Exits over $50 million have grown a massive 300%, with Healthtech Pharvaris exiting at a valuation of $636 million. The unicorn count has increased from two to six, including Blockchain company Dfinity, which is valued at $9.5 billion, all contributing to a nearly 60% increase in Ecosystem Value from the GSER 2022. Emerging Ecosystems Emerging ecosystems are startup communities at earlier stages of growth. The methodology for this ranking of the top 100 emerging ecosystems is intended to reflect this, showcasing the ecosystems displaying high potential to be top global performers in the coming years. The factor weights used to rank these ecosystems are slightly different from those used with the top ecosystems to reflect their emerging status and TOP EMERGING ECOSYSTEMS ECOSYSTEM OVERALL RANK Copenhagen 1 Hong Kong 2 Detroit 3 Barcelona 4 Dublin 5 Manchester-Liverpool 6 Brussels 7 Research Triangle 8 Minneapolis 9 Estonia 10 Houston 11 Dubai 12 Madrid 13 Guangzhou 14 Jakarta 15 Istanbul 16 Oslo 17 Wuxi 18 Phoenix 19 New Zealand 20 Source: Startup Genome SITE SELECTION JULY 2023 75 emphasize the factors that have more influence in ecosystems that are just beginning to grow. Less weight is given to the number of exits over $50 million and startup activity is more focused on early-stage funding than in the top 40 ecosystems. Among the findings: • The top 100 Emerging Ecosystems are collectively worth over $1.5 trillion in Ecosystem Value, a 50% increase from the GSER 2022. • Europe is the most represented region in the Emerging Ecosystems ranking and has expanded its share from 37% to 41% since the GSER 2022. • Copenhagen is No. 1, moving from the runners-up in the main ranking due to being outperformed by other regions such as Zurich. However, its Ecosystem Value increased by 29% and it saw growth in early-stage funding amount and in the number of exits over $50 million, with review platform Trustpilot the top exit in an IPO valued at $1.5 billion. • Barcelona has moved up five positions since last year, reaching No. 4. Its highest-valued unicorn, tech-enabled delivery platform Paack, was valued at $1.6 billion, helping to take the Ecosystem Value to $21 billion, a 91% increase from 2022. • Estonia has moved up an impressive 28 positions since the GSER 2022, reaching No. 10. Its rise is thanks to an increase in early-stage funding rounds, a 100% increase in exits over $50 million, and the new inclusion of CRM and intelligence platform Pipedrive’s 2020 $1.5 billion buyout. • New Zealand has moved up 14 positions, reaching No. 20 in the Emerging Ecosystems ranking thanks in part to an increase in exits of over $50 million and a new unicorn, Lodestone Energy, valued at $1.3 billion. • Further supporting the pattern of India growing and China declining, Pune has moved into the 31–40 range from 51–60 in 2022, experiencing both an increase in exits over $50 million and in the number of unicorns, while Guangzhou dropped seven positions from last year, to No. 14. • Riga has entered the Emerging Ecosystem ranking for the first time, in the 91–100 range, thanks in part to print-on-demand service Printful achieving unicorn status by raising $130 million in 2021. INVESTMENT PROFILE: WASHINGTON, DC Long known for its tourism appeal, W hat do Google, Boston Consulting Group and PwC know about Washington, DC, that most people don’t? They understand, from a business standpoint, that the nation’s capital is a lot more than monuments, museums and the federal government. While all those things attract millions of visitors each year to the District of Columbia, they are not the factors that cause high-tech, knowledge-intensive companies to grow. The secret ingredient for that sauce, says Audrey Polk, is the local workforce. As vice president of corporate attraction for the Washington DC Economic Partnership, Polk understands the needs of growing businesses, whether they are globally, nationally or Mid- Atlantic focused. In each case, she knows what is necessary to lure them to DC, and she also knows what’s needed to keep them. A brand-new Vitality Fund, administered through the Deputy Mayor’s Office for Planning and Economic Development, doesn’t hurt either. “This is a financial performance-based incentive that has a relatively low barrier to entry,” says Polk. The money can be used for items such as operational costs to downpayment assistance and things like rent, tenant improvements, worker training, recruitment and hiring. “The minimum threshold to qualify is only 25 employees and a commitment to 7,000 square feet of space for at least five years.” Polk says. “The employees must spend at least 50% of their work hours in the office. This has become a successful office attraction strategy for Washington, DC. We are trying to be really creative right now in terms of the deals that are out there. It is a $10 million grant, and we are making the most of it by targeting site consultants.” That creativeness and innovation are paying off for the by RON STARNER ron.starner@siteselection.com 76 JULY 2023 SITE SELECTION DC reasserts its business magnetism. More Than Monuments More Than Monuments The Wharf neighborhood in Washington, DC, is both prime real estate and a magnet to newcomers. Image courtesy of The Wharf, Washington, DCnation’s capital. “Google and Boston Consulting just made big investments. PwC said that of all their markets, this is the one their people are most inclined to return to,” Polk says. PwC recently committed to , sq. ft. and employing , people in the city. Over the past years, the city has achieved a number of economic development milestones, including $ billion in new development, ,-plus new residential units, new grocery stores, and $. billion toward opening nearly new and modernized schools. “We are not just monuments and museums,” Polk adds. “People see us as a tourist attraction, but DC is so much more than that.” A Busy Time for Big Deals Corporate investment is fl owing into the city in large numbers too. Boston Consulting Group relocated from Maryland to , sq. ft. in downtown DC for years, bringing jobs. Booz Allen’s Center for Innovation, e Helix, recently opened in DC’s central business district. Virtru, a homegrown company, is doubling its footprint in DC to , sq. ft. Polk notes that these factors sell companies on a DC location: • Access to federal and private clients. • Proximity to federal agencies, embassies and decision-makers. • ree international airports. • A network of established consultancies and global thought leaders. • Highly skilled talent pool. • A strong pipeline of tech and digital communications talent, often affi liated with one of the many local colleges and universities. Tech and cybersecurity fi rms are among the fastest-growing sectors in the city, along with consulting fi rms and think tanks. Emerging industries include digital media and communications companies; research and development organizations; information technology service providers; and fi rms engaged in marketing, design and publishing. A Citywide Comeback Plan Mayor Muriel Bowser and other city leaders are pushing for more investment, but also for more equity. at’s why they adopted a citywide Comeback Plan, a post-pandemic economic development strategy, outlining six goals to achieve by : • Create , new jobs in high- growth target sectors, which will include increasing apprenticeship programs and fi lling gaps in training and credentialing. • Increase the share of minority- owned employer businesses to % of all employers. • Increase access to opportunities for residents and eliminate gaps in food, housing and internet access across all neighborhoods. • Add , residents to downtown by adding million sq. ft. of residential units. • Retain current residents and reach a population of ,. • Raise the median household income of Black residents by $,. “ ere is a lot of excitement for DC because our businesses, both long-time and new, believe in DC,” says Mayor Bowser. “Washington, DC, is not only the place to be if you want to attract top talent and if you want to be close to decision makers — it’s also a wonderful place to live and work. We’re proud to be the nation’s capital. We’re proud of the many vibrant neighborhoods that are home to , people. Our downtown is beautiful and walkable. We have world-class restaurants and theaters. We have a reliable, clean and connected public transit system. We’re a sports town and a college town. We have great schools, and the top-ranked park system in the nation. We are an inclusive and welcoming city. And we want businesses to know that in Washington, DC, our best days are ahead of us.” This Investment Profile was prepared under the auspices of the Washington DC Economic Partnership. For more information, contact Audrey Polk at apolk@wdcep.com. On the web, go to www.wdcep.com. SITE SELECTION JULY 2023 77 We are not just monuments and museums. People see us as a tourist attraction, but DC is so much more than that.” —Audrey Polk , Vice President of Corporate Attraction, Washington DC Economic Partnership We are not just monuments Mayor Muriel Bowserby ADAM BRUNS adam.bruns@siteselection.com80 JULY 2023 SITE SELECTION A Southern Recipe FOR A SUSTAINABLE LIFESTYLE B oyd Johnson, co-founder with his wife Nicole Johnson of Greenville-based high- tech bicycle wheel manufacturer BOYD Cycling, likes to compare their company to a craft brewery. at’s not just because he likes a good brew. e comparison is more about the way an organically built company can fi nd its niche — and its literal place — as a globally competitive enterprise. Mark it as a symbol of the Upstate sustainability ethos. at ethos went a step further this spring when the company announced it was reshoring the manufacture of its alloy wheel rims for U.S.-sold wheels from Taiwan to its newly founded Olive Manufacturing Group (yes, they go by OMG), located about minutes away from BOYD’s home base just north of Furman University, very close to the Prisma Health Swamp Rabbit Trail used by hundreds of cyclists, runners and walkers every day between Greenville and Travelers Rest. “ rough Covid, we saw the strain placed on the supply chain and also a bike boom that lasted a couple years,” said Nicole Johnson. “Instead of purchasing an excess of inventory, we focused on creating better techniques and working to develop customized machines to bring our production home. We can now produce high-performance alloy bicycle rims here in Greenville without a price hike. In addition to our rims, there are also opportunities for other brands to onshore their alloy rim production in our facility while reducing lead times and costs. is will benefi t the entire cycling industry by off ering quicker turnaround without the supply chain issues of shipping products around the world.” In fact, the company aims for the OMG facility to become nothing less than “the largest aluminum bicycle rim manufacturing facility in the United States.” BOYD’s original HQ was located closer to downtown Greenville where it redeveloped part of what is now e Commons food hall in Unity Park, also next to the Swamp Rabbit Trail. e complex now houses several businesses that include a brewpub. You can take a pint and some Automatic Tacos out on the deck to watch other trail users roll, run and amble by. at’s exactly what I did after my ride up and UPSTATE SC INTELLIGENCE REPORT: LIVE, WORK & PLAY In the Upstate you can sustain the environment and a lifestyle at the same time. Photo by Adam Brunsback on that trail in June. Earlier in the day I’d sat at a nearby picnic table with Danielle Besser, communications & engagement manager for the Upstate SC Alliance; Jackie Baxley, principal & EHS&S practice leader at environmental engineering consultancy HRP Associates; and Ethel Bunch, president and CEO of Sustain SC, an organization that describes itself as commerce-driven and conservation-minded. Which could describe most Upstaters I’ve met. As Bunch neatly describes it, “If everyone gets in the room, you can normally come to a commerce and conservation solution without a courtroom … Our mission is to connect the sustainability goals of business with local solutions.” That mission is accomplished through direct consultation and convening, as well as through the Sustainability Leadership Initiative (SLI), where 24 selected participants from a cross-section of business, institutions, communities and NGOs earn a certification over a six-session, eight-month program hosted by Furman University. Baxley, who just graduated in the SLI’s second cohort, says the word “sustainability” is “squishy” because it means different things to different people. It might conjure a tree-hugging, off-the-grid hippie, but it’s also important to facilities managers looking at energy use and to industrial planners and consultants like her who evaluate risk related to climate change. “What I loved about SLI was it exposed me to various people who are in the same space as me but I would never have met,” she says, noting one participant who taught her about conservation easements. “I was like, ‘I wish I had land to give you right now,’ ” she says. “It’s that platform for collaboration.” Baxley knows all about sustainability at industrial sites, having helped with environmental issues at the redeveloped Judson Mill site, a 100-year-old former Milliken textile manufacturing location where HRP’s offices are situated. Today Judson Mill is a model of industrial chic, with a tall smokestack as a calling card and newly constructed, high-dollar condos. Feed & Seed offers organic and other South Carolina–grown products, not far from the BlocHaven indoor climbing gym, The 82 JULY 2023 SITE SELECTION Foundry music hall, the High Spirits Hospitality event space, Stumpy’s Hatchet House, Magnetic South Brewery and Jud Hub Social Innovation Center, featuring shared workspace, offi ce suites and conference/meeting rooms for “entrepreneurs, startups and social innovators.” e Upstate is a model for how sustainability and site selection intersect, says Baxley. Start with the scattergram of old mill-related and textile industry infrastructure being rehabilitated across the region. Historic warehouses are being remodeled at every turn. And healthy transportation options are top of mind. “It’s a perfect example of green space, recreational space and business space cohabitating,” she says. Trails and Destinations Just up I- a piece, there’s another cool downtown and region getting set to welcome both another rails- to-trails path and another bicycle company. TIME Bicycles, a French high-performance carbon bicycle manufacturer, announced in March it will invest $. million and create new jobs at what it says will be the nation’s largest carbon fi ber bicycle factory at a renovated factory building in Landrum, a small town of , people known for its horse culture at the foot of the Blue Ridge Mountains in Spartanburg County. A subsidiary of Cardinal Cycling Group, TIME makes bicycles that have won Olympic gold and numerous stages of the Tour de France. e manufacturer is just one more in a cavalcade of European companies that have planted their fl ags in the Upstate since BMW arrived years ago. “ e infrastructure that exists within this region for advanced manufacturing is unrivaled,” said TIME Bicycles CEO Tony Karklins. “ rough our collaboration with Clemson University, KraussMaff ei and e SC Fraunhofer USA Alliance, we look to produce the most advanced carbon fi ber bicycles in the world, with technologies and partnerships in place to rival production out of Asia.” e company’s chosen site is on the Saluda Grade Trail, a famously challenging Norfolk Southern rail route that soon will become a similarly challenging -mile trail system all the way from Saluda, North Carolina, down to Spartanburg proper. “TIME’s presence helps put Spartanburg County on the map among top cyclists from around the world,” said Laura Ringo, executive director of PAL, which stands for Play, Advocate and Live Well. “And, in case there is any question, this is another example of how trails drive economic development from small to international businesses.” Kyle Sox, vice president of industrial development at OneSpartanburg, Inc., lives in Landrum. He knew TIME wanted to be near a trail and that most of the company’s employees were avid cyclists themselves. “ ey were looking all over downtown. I happened to know of the closure of a legacy company in Landrum and I told Tony there was the potential of a rail trail. I said, ‘Tony, we’re gonna go for a ride.’ ” An area that may feel out of the way to some turned out to be just right. “Landrum is around , feet above sea level. Hogback Mountain is , feet,” Sox says. “ at’s the Saluda Grade. If you’re an elite cyclist, that’s what you want.” Michelle Tennant Nicholson, chief creative offi cer for Wasabi Publicity, has made her home in Saluda Clemson University Photo courtesy of Lake Hartwell Country Tourism, South Carolina (lakehartwellcountry.com) LIVE, WORK & PLAYNext >