Startup Friendly Cities: Global Innovation Shifts

The «Startup Friendly Cities Index 2026», released by Multipolitan, reveals a shifting global map of entrepreneurial opportunity – one where traditional venture powerhouses remain dominant, but agile, policy-driven hubs in Europe, the Middle East, and Asia are rapidly gaining ground.

With San Francisco retaining the top spot, Zurich and Dubai demonstrate how regulatory efficiency and quality-of-life metrics are now as critical to startup success as capital depth, according to «The Startup Friendly Cities Index 2026», published in early January by Multipolitan, a global migration platform that aims to simplify exploring, living, and working across borders.

As the number one in the 2026 edition, San Francisco is cementing its status as the benchmark for startup ecosystems worldwide.

The city's unrivalled concentration of venture capital, dense network of high-growth companies, and deep tech infrastructure form the foundation of its enduring appeal to founders and investors alike.

Europe’s Precision Powerhouse

Zurich’s elevation to second place underscores a broader European strength grounded in stability and high living standards.

While its venture market remains smaller relative to US giants, the Swiss hub’s exceptional educational assets, robust digital readiness, and institutional reliability make it a magnet for tech talent seeking quality-of-life balance alongside innovation potential.

Dubai’s Rapid Rise

Dubai’s leap into the top three highlights how streamlined regulation, low friction business incorporation, and world-class connectivity can accelerate entrepreneurial growth.

The city’s rapid ascent reflects a deliberate strategy to build an environment where startups can launch, scale, and access global markets with minimal bureaucratic drag.

Asia’s Business Agility Benchmark

Singapore ranks fourth, affirming its role as Asia’s benchmark for regulatory clarity and cross-border scalability.

The city-state’s blend of strong fiscal policy, digital infrastructure, and talent mobility continues to draw founders looking for predictable governance and international reach.

What Makes a City Startup Friendly?

Multipolitan’s index suggests that access to capital, while indispensable, no longer guarantees ecosystem leadership in isolation. Cities that combine investment opportunities with efficient regulatory processes, strong digital infrastructure, and attractive living conditions are increasingly outpacing peers.

This framework reflects a broader industry understanding – one seen in other ecosystem rankings that note rising competitiveness in regions outside traditional US cores.

Potential Meets Policy Challenges

Cities such as Bengaluru, Beijing, and Shanghai exhibit vibrant entrepreneurial energy, often hosting large numbers of unicorns and expansive startup communities.

Yet these advantages are periodically offset by slower company registration, bureaucratic complexity, and infrastructural gaps, illustrating the nuanced trade-offs between scale and ease of operation.

Next Decade of Startup Geography

The Index confirms that the future of innovation will be won by ecosystems that foster not only investment flows but also operational efficiency, livability, and policy predictability.

As founders increasingly prioritize environments that minimize friction and maximize creative capacity, cities that align these elements are poised to redefine the global innovation landscape.