Tehran has fallen 174 places in the 2021 Start-up Blink rankings for viability of creating a tech startup in the city, it was reported on September 8.
According to the latest report by the foreign-based company rating startup rankings, the United States is the first country in the world in terms of business viability, quality and quantity of start-ups. The United Kingdom, Israel, Canada, Germany and Sweden are next, and China is seventh in the world.
The start-up ecosystem of Tehran is ranked at number 512 globally out of 1000 cities, and shows a negative momentum decreasing 174 spots since 2020. Tehran also ranks at number 1 in Iran, and 18 in “Middle East” overall.
The website said Tehran is an “ideal place to locate for Ecommerce & Retail, Fintech and Education start-ups,” however its data did not provide its ranking method.
As one of the most popular industries in Tehran, there are several e-commerce and retail start-ups in the city which have themselves spurred others to join the fold.
Reasons for the ratings drop
This external rating system does not take into account the several accelerators based at university campuses in the city, including Sharif University, Tehran University and Amir Kabir.
Like elsewhere, the startup industry has been damaged by the coronavirus (COVID-19) pandemic with accelerators and startup centres closing their doors in over the past 16 months.
US sanctions placed on the country’s banking sector, financial transactions, including through cryptocurrency wallets have also damaged the industry with foreign funds unable to help support the industry.
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