Asia Leads Innovation Surge as Singapore Overtakes San Francisco

According to the 2025 Hypergrowth Startup Index released by HubSpot for Startups in partnership with PitchBook, Singapore has surpassed San Francisco to become the leading global hub for startup growth. This is the first time San Francisco has been dethroned. 

The report, which ranks the top 100 fastest-growing companies and unicorns, highlights the rise of Asia as a new center for innovation. Cities like Shanghai and Beijing are also gaining prominence. The study notes a change in investor focus, with startups built on sustainable business models and strong partnerships now taking precedence over rapid scaling and large funding rounds.

The 2025 Hypergrowth Startup Index highlights a shift in investor preferences, moving away from aggressive scaling and toward startups that prioritize sustainable growth and strategic alliances. As a result, the number of monthly deals has fallen by 50% since 2021, dropping from 20,000 to 10,000. However, average deal sizes have grown by 43%, rising from US$35 million in 2023 to US$50 million in 2024, indicating a focus on quality over quantity.

Exit strategies have also evolved, with mergers and acquisitions becoming preferred. M&A deals now make up 43% of all exits, while only 6% of startups are opting for initial public offerings (IPOs). 

Traditional industries are showing strong momentum, often outpacing their tech counterparts. The energy sector led with a 37% growth rate, followed closely by information technology at 36% and B2B companies at 35%. Commercial services also performed well, with an average growth rate of 30%, signaling renewed investor interest in core industries with reliable revenue models.

The report also demonstrates Asia’s growing influence in the startup world. In addition to Singapore’s leading position, cities like Shanghai and Beijing are emerging as major innovation centers. While established hubs such as London remain strong, the balance of global startup activity is increasingly shifting toward the East.

Artificial intelligence continues to play a key role in reshaping startup strategies, especially in supporting sustainable business models. Laurence Butler, Head of HubSpot for Startups, noted that companies focused on building strong customer relationships from the start are outperforming those that prioritize speed alone. Strategic partnerships and joint ventures, which now boast deal sizes nearly four times higher than traditional buyouts, further underline the importance of collaboration in today’s startup ecosystem.

The 2025 Hypergrowth Startup Index data was compiled by HubSpot using PitchBook Data in February, supported by expert interviews conducted through February and March 2025. This comprehensive approach offers a timely snapshot of the changing global startup landscape and shifting investor priorities.