Philly is now one of the top 15 places in the world to launch a startup
The region is now ranked No. 13 in the 2025 Global Startup Ecosystem Report from trade association and research group Startup Genome and the Global Entrepreneurship Network. Over the last five years, Philly has climbed 35 spots, the report states — a sign that collaboration in the innovation scene is working, said Tiffany Wilson, president and CEO of the University City Science Center, a Startup Genome member.
'We've been laying groundwork … over the last few years, and starting to see some early indications of companies seeing success as a result,' Wilson told Technical.ly. 'It's the right activity at the right time.'
Last year, Philly broke the top 25, an improvement over the previous year when the city ranked No. 27.
The latest ranking can be partially attributed to the billions of dollars flowing into the scene. Philadelphia's ecosystem value from 2022 to 2024 is $76 billion, while the global average is $20.4 billion.
Startup Genome also credits Philly's sector-specific niches for helping it top the charts.
Life sciences was cited as a top industry in the region. Startup Genome called out the $30 million dedicated to the sector in the Pennsylvania governor's proposed 2025 to 2026 budget, plus huge raises, like gene therapy company Latus Bio's $54 million round, as reasons for its top performance.
As the home of the first FDA-approved cell and gene therapies, Philadelphia is already well-known for its life sciences wins. However, the past six months have challenged that reputation, as the city's gene therapy darling, Spark Therapeutics, recently faced restructuring and layoffs. Analysts at the time agreed, though, that one company-specific setback doesn't undermine what the scene has accomplished (or the millions that continue to be raised).
Startup Genome also mentioned AI and big data and robotics and advanced manufacturing as strong sub-sectors in Philly. The report specifically cited big deals like Sojo Industries' $10 million Series A raise last summer and Ghost Robotics' $240 million acquisition by South Korean defense tech company LIG Nex 1.
Diverse talent, support from entrepreneurship-focused organizations and collaboration are all reasons startups should consider settling down in the city, according to the report. Startup Genome also highlighted key stakeholders like 1Philadelphia, Comcast NBCUniversal LIFT Labs, Philadelphia Alliance for Capital and Technologies, Philly Startup Leaders (which recently rebranded to Startup Leaders) and Independence Health Group.
A tough time for VC, but billions still flow into Philly
Philadelphia is also beating out other regions in cash flow. Total VC funding for the city over the last five years is $24 billion, while the global average over the same time period is $5.2 billion.
2024 saw $3.3 billion in venture capital invested over 444 deals, a 37.5% increase from the previous year, the report said. One of the area's strengths is funding for early-stage companies, which aligns with the report's findings of $3.4 billion in early-stage funding from 2022 to 2024.
'At the end of the day, the money will follow the best companies,' Wilson said. 'It's just about getting them ready and plugged in to prepare for that.'
Philadelphia faced a hard quarter for venture capital deal flow in Q1 of this year. Local organizations like the ones Startup Genome shouted out are trying to build connections to keep up the momentum.
Ben Franklin Technology Partners' GO PA Fund is providing capital to local companies, including $2 million into medtech company Rimsys' $5 million round, per the report.
Plus, the Science Center's Capital Readiness Program helps startups prepare to raise capital and brings companies from outside the region in. The Science Center facilitates introductions to potential partners and clients, while also showing off what Philly has to offer with the goal of getting companies to stay, Wilson said.
Investments at the state level are also shining a light on Pennsylvania as a whole. Earlier this week, Amazon announced a $20 billion investment in AI across the state, including plans to build a data center in Bucks County.
A sign of 'legitimacy, momentum and opportunity'
Startup Genome's rankings don't define a startup environment forever; rather, they are a tool for future strategy and decision making, according to Stephan Kuester, managing partner at Startup Genome.
Philly's recent jump can provide it with insights on how to sustain the upward trajectory.
Higher rankings are often a sign of 'legitimacy, momentum and opportunity,' creating more attention for the market and leading to more opportunities, Kuester said. A low ranking can be a sign to leaders to take action and address gaps.
'Whether an ecosystem rises or falls, the ranking is most valuable when used not as a scoreboard, but as a diagnostic tool,' Kuester said. 'Movement in the rankings should spur collaborative analysis across the ecosystem to understand root causes and adjust course accordingly.'
Philadelphia's high ranking will hopefully draw more startup leaders into the scene, Wilson said. Being No. 13 in the world presents an opportunity to connect the dots between investment, job creation and actual human impact happening in the region.
'It's been exciting to bring people into the ecosystem and see them experience that,' Wilson said. 'If we can do that, and we can really demonstrate how we help innovation move from an idea to impact.'
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Philadelphia jumped 12 spots in a national ranking of startup ecosystems, placing the city among the top 15 places in the world to found a company. The region is now ranked No. 13 in the 2025 Global Startup Ecosystem Report from trade association and research group Startup Genome and the Global Entrepreneurship Network. Over the last five years, Philly has climbed 35 spots, the report states — a sign that collaboration in the innovation scene is working, said Tiffany Wilson, president and CEO of the University City Science Center, a Startup Genome member. 'We've been laying groundwork … over the last few years, and starting to see some early indications of companies seeing success as a result,' Wilson told 'It's the right activity at the right time.' Last year, Philly broke the top 25, an improvement over the previous year when the city ranked No. 27. The latest ranking can be partially attributed to the billions of dollars flowing into the scene. 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