Startups don’t just build companies. They build exports, jobs, and the reputational currency of entire countries. And in an economy where capital and talent can move instantly, the strength of a startup ecosystem is increasingly a proxy for national competitiveness.
But measuring that strength is notoriously difficult. That’s where StartupBlink comes in.
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Founded to bring structure and visibility to the fragmented world of innovation ecosystems, StartupBlink now operates one of the most comprehensive startup data platforms globally. Its Global Startup Ecosystem Index, released annually and now in its 8th edition, ranks 1,473 cities and 118 countries based on three pillars: startup quantity, quality, and business environment.
The index is used by over 100 governments and development agencies to identify gaps, set priorities, and track the evolution of their tech sectors.
But StartupBlink’s work goes deeper, supporting startup ecosystem growth through four strategic pillars:
- Mapping: Building live, detailed maps of every startup, investor, and support organization in a region. These maps serve as the foundation for improved data sharing, a clearer ecosystem strategy, and enhanced global visibility.
- Analysis: Benchmarking ecosystems across more than 100 indicators to uncover blind spots, sector strengths, and strategic opportunities.
- Promotion: Sharing data-driven insights with hundreds of thousands of global investors, corporates, and entrepreneurs.
- Activation: Powering ecosystems through events, portals, and programs that spotlight local successes and build real connectivity.
This year’s report highlights familiar leaders, with the US, UK, and Israel dominating the global rankings. However, the report also brings quieter success stories to the surface. Cyprus climbed five spots to rank 40th globally, and now holds the #2 position worldwide among countries with fewer than 2 million people. For a small island often left out of big tech narratives, this is proof of acceleration. The challenge now is sustaining that momentum and ensuring the ecosystem scales with intention.
Where the Giants Still Reign: The 2025 Global Top 10
The 2025 edition of the StartupBlink Global Ecosystem Index doesn’t radically alter the leaderboard from the previous years, but it does reinforce just how dominant the leading ecosystems remain.
The United States remains the undisputed leader, buoyed by the scale and diversity of its cities. The U.S. not only tops the country ranking but also dominates the city list, with San Francisco once again in the top position. New York, Los Angeles, and Boston all hold top 10 positions, reinforcing the country’s multi-nodal innovation power. The US remains the top global startup ecosystem, with a lead nearly four times greater than the UK in 2nd place. While this gap has narrowed since 2020, it has stabilized over the past three years.
The United Kingdom holds its position at #2, followed by Israel at #3. Singapore (#4) and Canada (#5) complete the top five.
For another year, no EU country appears in the global top five — a sign that while several European countries have mature ecosystems, the EU as a bloc still struggles to break into the highest tier.
Sweden (#6), Germany (#7), France (#8), Switzerland (#9), and the Netherlands (#10) round out the top ten. These countries continue to perform well but haven’t yet closed the distance to the very top.
Outside the top tier, growth is happening at a different pace. Smaller ecosystems are gaining visibility and influence. Cyprus is one of them — improving its position and starting to compete on the global stage.
The Case of Cyprus
Cyprus has officially entered the global top 40 startup ecosystems, rising five places from last year to rank 40th worldwide. It now holds the title of the largest climber among EU countries for the second consecutive year. This year, its overall ecosystem score grew by 28.2%, placing it well above the global average and signaling strong, sustained momentum.
All four Cypriot cities included in the index saw positive growth:
- Limassol climbed nine positions to rank 230th globally, maintaining its spot as the island’s top-performing city. It also rose to 12th in Southern Europe and achieved standout rankings in Gaming (22nd globally, 5th in the EU) and Social & Leisure (top 100 globally).
- Nicosia advanced three spots to rank 346th, with notable performance in MedTech (50th) and Gaming (56th).
- Larnaca rose to 850th and Paphos to 940th, both improving by several positions.
Cyprus also ranks:
- 2nd worldwide among countries with fewer than 2 million people.
- 4th in Southern Europe.
- 2nd globally in Gaming, and 1st in Europe.
- Within the EU, top 10 for industries like MedTech (2nd), FinTech (3rd in Southern Europe), and Blockchain (9th).
- 15th globally in Social & Inclusion.
“The rapid rise of Cyprus’s startup ecosystem is more than just a success story,” said Theodoros Loukaidis, Director General of the Research and Innovation Foundation. “It is proof that when visionary ideas are met with the right resources and support, extraordinary things can happen.”
TechIsland, another local ecosystem partner, echoed this optimism:
“This report is testament to Cyprus’s ongoing growth. We’re proud to see the island performing so well on a global map of startup innovation.”
Cyprus’ progress isn’t accidental. It’s the result of deliberate policymaking, institutional support, and a concerted effort to turn the island into a serious innovation player. In this year’s report, two organizations stand out as the official local ecosystem partners: the Research and Innovation Foundation (RIF), Cyprus’s national authority for research and innovation, and TechIsland, a non-profit tech association that has helped position Cyprus as a rising hub for tech companies and talent.
As TechIsland noted, “We’ve been partners with StartupBlink for a while, and this is the second time we are Ecosystem Partners for such a report.”
The Research and Innovation Foundation (RIF) has led the charge with programs like PRE-SEED, SEED, INNOVATE, and blended finance schemes such as DISRUPT and BOOST. These initiatives have catalyzed private capital, accelerated early-stage growth, and helped domestic startups look outward. Complementing this is the Deputy Ministry of Research, Innovation and Digital Policy, established in 2020, which has introduced tax incentives, funding frameworks, and the Cyprus Startup Visa to attract founders from outside the EU.
Working Hard Behind the Scenes
Talent remains one of Cyprus’s most strategic assets. With one of the EU’s highest graduate rates per capita, and a recent influx of Russian and Ukrainian IT professionals, the island has both a homegrown and international knowledge base. Tech firms like NCR, Viber, Amdocs, Semrush, and Logicom have set up regional operations, anchoring the ecosystem with skilled jobs and global exposure. But this corporate success also presents a tension: startups now compete with large employers for the same limited talent, making entrepreneurship a harder sell in a country where job security still dominates career decisions.
To counteract this, a growing network of institutions is stepping in. CYENS, a research center backed by the Municipality of Nicosia and international heavyweights like University College London and the Max Planck Institute, is advancing applied research and tech transfer. Cyprus Seeds is tackling academic brain drain head-on, offering grants and mentorship to research teams with commercial potential. And with the recent launch of the 33East Fund, Cyprus has added a dedicated VC player to fuel early-stage scale.
Fintech continues to be one of the island’s breakout sectors, bolstered by high-performing startups in investment automation, RegTech, and performance analytics. Cyprus has also emerged as a global leader in blockchain education. The University of Nicosia was the first in the world to offer a Master’s in Digital Currency.
With the Reflect Festival drawing global tech talent to Limassol and initiatives like the Cyprus Diaspora Forum reconnecting global Cypriots to the local scene, the momentum is building. What remains is to sustain it, not just with capital, but with culture and the willingness to bet on local talent.
