London is home to one of the most innovative academic and funding ecosystems, as well as a melting-pot of international talent.
London is one of the most popular global tech hubs in just a few years. The majority of the Investment in Venture Capital of $31 Billion In 2022, London will have invested $20 billion in the UK. By 2023, Three new unicorns Quantexa, Synthesia and Zyber365 emerged in London.
In recent years, the technology industry has exploded in London. The tech industry employs approximately 6% of workers In London, it has over A fifth of all workers. . 25,000 new tech companies In 2022, there will be a total of 20,000 new jobs.
Why is London such a hotspot for startup companies? We explore what you should know to start a business in London, including how to find investment, support, networks and talent.
London offers clear investment opportunities
London has a long history of providing financial services. In the past few decades this reputation has grown into an increasing number of venture capital funds that are looking for the next unicorn in London.
There is a large network of investors who are interested in making pre-seed or seed investments. Seedcamp Has built a solid reputation for being one of Europe’s top seed-stage VCs. They have backed startups in Europe, including Revolut and Wise. They announced Seedcamp Fund VI last year, an $180 million fund supported by more than 200 investors. Saul Klein’s Seedfund is another prominent fund. LocalGlobe, Playfair” Firstminute CapitalBrent Hoberman launched a fund backed by more than 100 unicorn entrepreneurs.
From Series A and up, founders can raise capital from a variety of growth-stage VCs. Balderton Capital The largest venture capitalist in Europe. The firm manages $2.7B in assets and invests in entrepreneurs building globally ambitious businesses–including Betfair, Depop, and Citymapper. Molten Ventures Impact-led Octopus Ventures The landscape of growth-stage funding is dominated by companies that occupy similar prominent positions.
London is also a gateway for some of the largest international VCs, especially from the US. They have long viewed the UK capital city as a strategic base in Europe. A16Z opened their London office in 2023 and joined the ranks of Sequoia Ventures, Index Ventures and Accel.
Eleonore Crespo is the founder of French start-up Pigment. She has benefited from these two sources of funding. Pigment raised $145 million in funding recently from IVP and ICONIQ, two prominent US-based funds. Eleonore explains that both funds are headquartered in London, which makes it easier for them to work with us.
London is home to many accelerators, incubators and other programs that can help startups who are looking for something more than just capital. Entrepreneur First Since 2011, more than 3000 co-founders have been through the programme, building over 300 businesses with a combined value of $10B. Venture studios and accelerators are also support programs. Founders Factory Impact-driven (investing in fintech, deeptech, climate change, and health) Bethnal Green VenturesThe world’s most renowned and acclaimed brand Techstars.
London has a world-class talent pool
London has long attracted highly-skilled talent to the city to work and study. This is due to its diversity as well as the academic strength in the area.
Imperial College London Regularly ranks among the top 10 of many global rankings (6th overall, according to QS World University Rankings, 2024). Imperial has a stellar STEM reputation that attracts international students. 61% are from other countries. The university has a strong track record of producing successful spin-outs, including Tractable the UK AI unicorn developed by Imperial.
The University of London comprises a number of leading universities located in London, such as The London School of Economics and Politics (LSE), University College London The University of California, Los Angeles (UCL) King’s College London (KCL). The school is home to a number of leading business schools, including London Business School You can also find out more about the following: Bayes Business SchoolThe top MBA programs in the world are regularly ranked by. They have an emphasis on entrepreneurship and startup companies.
London is not only home to top-notch universities. Its diverse sectors, in particular financial services, make it an attractive place for talent. Samantha Duncan, the founder of Net Purpose was able tap into it when she grew her business. I was building a business in capital markets, and London is, along with New York City, one of the major financial hubs around the globe.
It is also attracting talent from fast-growing tech companies. Eleonore, the founder of Pigment, experienced it first-hand after opening a London office: “Many of our UK employees are from top tech companies such as Meta, Workday and Amazon as well as scale-ups with hyper-growth.”
London is a great place to get support
London has a large number of entrepreneurial communities that cater to the many startups.
London & Partners is a good place to start if you are relocating in the capital. London & Partners is London’s destination and business agency. They promote London as the top city for entrepreneurs, helping founders grow their businesses or relocate there. Their key event is London Tech WeekFounders Forum and Informa jointly run a festival that celebrates the startup scene in London.
French startup Back Market London & Partners was a valuable asset for them when setting up their restored tech device marketplace in London. We received excellent support from London & Partners, including advice, connections and solutions, as well as networking. “The team helped us enter the UK much more smoothly,” says Thibaud Hug De Larauze. CEO and cofounder of Back Market.
You may also come across Founders Tech London AdvocatesThey are also a key partner behind London Tech Week. London Tech Week is also one of their key partners.
London’s entrepreneurial scene also supports and celebrates diverse entrepreneurs and talents. Black Valley This community is located in London and aims to empower Black talents in UK technology. Pride in TechIn the meantime,, provides support and a community for LGBTQ+ entrepreneurs.
London is awash with workspaces that are ideal for creative and innovative businesses.
Plexal’s Community and workspaces provide more than just desks for science and tech businesses. They also offer a wide range of collaboration and support programs.
Huckletree This is a brand new chain of offices that caters to innovative technology companies. 180 Studios The community is based in Central London and aims to attract creative and innovative businesses. It has hosted everyone from TikTok, Dazed & Confused, to Charlotte Tilbury.
London is a great place for startups because of its sheer size and the opportunities it offers. New businesses that receive the proper guidance and support can gain access to world-class talent, investment and community support.
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