For MBA entrepreneurs looking to launch their ventures, choosing from top entrepreneurship hubs like Silicon Valley, Berlin, Singapore, or Bangalore can be just as crucial as the business idea itself.
Why Post-MBA Location Is Crucial for Startups
The right location for launching your own venture as an MBA graduate provides three essential ingredients for success: access to capital, experienced mentors, and a thriving ecosystem.
Access to Capital
Securing investment for the startup idea is usually at the top of the list of priorities for aspiring founders. To do so, they can benefit from having access to investors who understand scaling businesses and can provide funding as well as guidance. Locations like Silicon Valley, New York, and Singapore are full of this type of venture capital opportunities, which means MBAs can more easily reach out to and meet face-to-face with interested parties.
Mentorship
Having professional guidance from an expert is another opportunity that can significantly increase the productivity of founders and steer them in the best direction. During the Global MBA at EDHEC Business School (France), each startup is matched with a mentor for six months, but many continue their correspondence even after that.
Not just formal mentors, but every academic acquaintance can be a source of knowledge, like Richard O’Brien, MBA Class of 2020 at Babson College: Olin Graduate School of Business (US), discovered:
“Being in Babson’s entrepreneurship ecosystem, surrounded by other student entrepreneurs, the encouraging faculty, alumni, events, and more makes it very easy to stay inspired and motivated,” he highlights.
Startup Ecosystems
If you’re wondering what a startup ecosystem even is, think accelerators, coworking spaces, or ways to get legal expertise. It’s the infrastructure that transforms ideas into viable businesses, whether it’s provided by the business school itself or facilitated on a regional level. With such support systems, aspiring founders can also find talent like engineers or designers that can add value to their product or service.
Top Global Hubs for MBA Entrepreneurs
Almost any country or city can be the birthplace of successful entrepreneurial ventures if the idea, timing, and implementation (among other factors) are right for the market. Still, there are some regions that have earned their place in the “startup hub” wall of fame as they offer particularly strong startup ecosystems for MBA graduates ready to launch their ventures.
Silicon Valley (California, USA)
Undoubtedly the gold standard for tech startups, everyone has heard of the power of Silicon Valley in the US. Its access to venture capital is incredibly valuable, as well as the density of young enterprises, investors, advisors, and all types of experts that could be of use. As always, there’s at least one important drawback: the competition is intense and living costs are going up, which means not every small idea can thrive over there.
Berlin (Germany)
Europe has its shining stars too and Berlin proves to be a strong contender to be crowned its startup capital. The culture and lifestyle are very diverse and vibrant, while the cost of living is affordable, which means it attracts a lot of international talent. The visa policy in Germany is welcoming for outside entrepreneurs. Consumer tech, fintech, and mobility startups are among the more popular and developed fields.
Singapore
Heading to Asia, Singapore has the lucrative location and growing venture capital presence to make it an ideal hub for startups. Both local and international founders can benefit from Startup SG – an initiative that provides different types of support for startup development in Singapore – for example, for talent sourcing or mentorship. Plus, universities and business schools such as Nanyang Technological University: Nanyang Business School provide a strong research base and talent pool.
Bangalore (India)
If you have heard of India’s “Silicon Valley” before, you will know this is Bangalore. With its multi-million population, it offers access to world-class engineering talent at competitive rates. The city’s mature tech ecosystem and familiarity with global business practices provide an excellent launchpad for SaaS, AI, and enterprise software ventures.
Case Studies of MBA Startups
While these destinations are smart choices for MBA entrepreneurs, there are plenty of examples hailing from all over the world that can teach us a thing or two about this business.
BlaBlaCar (France)
Launched in 2006, BlaBlaCar started as a carpooling platform but has grown ever since. It all began when founder Frédéric Mazzella couldn’t get a train ticket from Paris and noticed most cars had empty seats. He graduated from the INSEAD MBA in 2007. The strong engineering talent, high digital adoption, and EU cross-border mobility made an ideal combination.
Grubhub (USA)
This popular online platform for food delivery was founded in 2004 by Matt Maloney and Mike Evans while Maloney was an MBA student at The University of Chicago: Booth School of Business. The idea won Booth’s startup competition, but Chicago’s well-oiled logistics and tech ecosystem offered the right combination of factors to help turn this vision into reality.
Cloudflare (USA)
It’s an interesting fact that the Internet security company is headquartered in San Francisco, but its concept originated in the Harvard Business School (HBS) Business Plan Contest. It’s where two of the founders Matthew Prince and Michelle Zatlyn met. Engineer Lee Holloway joined them and by winning the contest, they gained early validation and visibility among investors.
Nubank (Brazil)
David Vélez, the co-founder and CEO of this digital bank, holds an MBA degree from Stanford University: Stanford Graduate School of Business. One year after graduating, he launched Nubank as an alternative to the bureaucracy and high fees he encountered at Brazilian banks. Its growth in Latin America is proof that emerging markets with inefficient competitors are ripe for innovation.
How to Evaluate a Hub for Your Startup Idea
Not all entrepreneurship hubs are created equal – some might be a better fit for you and your vision compared to others. How can you find out whether a particular city or region is the right fit for an MBA and/or a post-MBA business?
The connection to your target industry should be your starting point. Does the region have a concentration of companies in your sector? Berlin excels in mobility and fintech, while Bangalore dominates in enterprise software. Being where your industry thrives means easier access to specialized investors and potential customers. Potential partners or future employees will also understand your market better.
Then, the visa policies on a national level play a huge role for international founders. For instance, Germany has an entrepreneur visa (residence permit for self-employment) and Singapore has its EntrePass program – though different, both options offer strong initial support for foreign MBA graduates. Check the exact requirements of the country where you’re headed way in advance, because some may require capital investment or local partnerships.
It may seem less important at first, but incubators and accelerators can make a difference as well, so you might want to check if any are available. They provide structure during those early stages of a new venture. Programs like Y Combinator in Silicon Valley or Station F in Paris offer mentorship, networking, and sometimes funding. Look for accelerators with strong track records in your industry and alumni networks that can open doors long after the program ends.
The best cities for startups MBA graduates should consider include well-known hubs with established startup ecosystems. However, the right choice depends on aligning your industry and ambitions with the unique strengths each location offers.
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