In a recent report by Startup Genome, five Asian countries have emerged as significant players in the global startup ecosystem, with China, India, Israel, Singapore, and South Korea ranking among the top 10 countries with the highest number of “scaleups” – startups valued at or above US$50 million. This report sheds light on the impressive growth and innovation taking place in the Asian startup landscape.

Globally, only a small fraction of startups, approximately 4.6%, have reached the coveted US$50 million valuation threshold. However, these five Asian nations have made substantial strides in nurturing and supporting companies that have achieved this milestone.

China, the powerhouse of the Asian economy, leads the way in Asia with a staggering 1,491 scaleup companies, earning it the second spot on the worldwide list, just behind the United States with 7,184 scaleups. India secures the fourth position globally, boasting 429 scaleup companies, while Israel ranks seventh with 246. South Korea and Singapore round out the top 10, taking the ninth and tenth spots, respectively, with 164 and 133 scaleup companies. Japan narrowly missed the top 10, securing the 11th position worldwide with 113 scaleups.

One notable finding from the report is that North American companies received the lion’s share of venture capital (VC) funding globally, accounting for 55% of the total, while Asian companies made up 31% of the total VC funding.

The report also delves into some of the unique challenges faced by Asian startups when aiming to reach the US$50 million valuation mark. Language and cultural barriers, as well as differences in market needs between Asia and Western countries, were identified as factors that may hinder Asian startups’ growth in international markets.

One standout observation unique to Asia is that Business-to-Consumer (B2C) startups tend to be better positioned to become scaleups compared to their Business-to-Business (B2B) counterparts. This highlights the potential for Asian companies to tap into consumer markets and expand their reach globally.

Globally, the biotech and pharmaceuticals industry emerges as the leader in terms of the number of scaleups, with more than 1,800 companies operating in this sector. Fintech closely follows with over 1,700 scaleup companies, showcasing the diversification and growth of the startup ecosystem across various industries.