A new report shows Sydney has the potential to punch significantly above its weight in technology.
The Startup Genome Global Startup Ecosystem Ranking Report 2017 shows Sydney achieved the highest exit growth rate in the world over the past two years at 370 per cent. The exit growth rate represents businesses that have been acquired, merged or floated.
The city also ranks 10th in the world for funding, 12th for talent and 13th for global market reach.
"Sydney's startup scene is booming now - we are poised with more venture capital and more energy than ever before," said Dean McEvoy, CEO of TechSydney.
"It's a critical time for our industry. This report proves Sydney has what it takes to be in the Top 10 ecosystems in the world. We just need to accelerate our growth and the size of the industry with a central hub for startups.
"If we provide space for the density our industry needs to grow and we all come together – in spirit and in one location – we will be an unstoppable force and create the next generation of jobs for Australia."
Sydney ranked as the 17th overall tech ecosystem according to the report – largely because of its relative size and lack of density in comparison to tech behemoths like Silicon Valley.
However, a number of additional international powerhouse ecosystems were included in the Global Ecosystem Report this time around – and the criteria was significantly widened – meaning although Sydney was ranked 16 in the last report, being ranked 17 this year is actually a more impressive result.
CEO of StartupAUS, Alex McCauley, said: "Australia has moved quickly over the last 18 months and this report reflects our achievements.
"Sydney still ranks as one of the best startup ecosystems in the world, and there are only nine countries ahead of Australia on this list. Yet despite the clear progress we've made, the rankings remain largely static.
"There's a very clear message here: this is a hugely competitive, global race - we need to run fast to even maintain our position. That's why it's so critical that we don't lose focus."
"It's clear with a ranking of twelfth for talent, that Sydney universities are providing the talent pool to make an impact on the global stage," said UTS Vice-Chancellor Professor Attila Brungs.
"Our students are tomorrow's entrepreneurs and critical thinkers, and we will continue to provide innovative programs and opportunities for all our students which prepare them for the future of work.
"UTS, at the heart of Sydney's start-up ecosystem, will continue to support the on-going growth of the ecosystem by collaborating with ecosystem partners on research and skills development initiatives to drive innovation."
Tim Williams, CEO of the Committee for Sydney said, "The report demonstrates that the startup sector in Sydney is continuing to deliver a strong global performance, in an increasingly crowded field and against ever greater competition.
"Sydney remains the best performing city for startups in Australia, which again demonstrates the major contribution that the city makes to the Australian economy overall.
"However, it also highlights the crucial relationship between startups and liveable cities that connect entrepreneurial businesses with high-quality public transport, world-class educational establishments and dense, attractive places to live and socialise. Here, Sydney has further to progress."
The report assessed 55 startup ecosystems across 28 countries (the last report assessed 40 ecosystems in 25 countries and did not include China, South Korea or Japan).
The Startup Genome Global Startup Ecosystem Ranking Report 2017 is available for download here.
More information on Startup Genome is available on their website and the previous report is available to download here.