The Strategist

London overtakes European cities in local start-up investment

01/14/2022 - 05:09

Tech startups from London attracted $25.5 billion in 2021, more than doubling their 2020 results. The UK capital surpassed all European cities in this indicator and in the world was second only to the US cities of San Francisco, New York and Boston. Experts attribute London's success to cooperation between lawmakers and the technology sector, as well as the city's accumulated talent pool.

Venture capital investment in tech start-ups in London reached $25.5 billion in 2021 and the UK capital is ahead of all European cities, being just behind American San Francisco, New York and Boston. 

Funding for London tech companies has more than doubled since 2020, Bloomberg reported, citing research from advertising firm London & Partners and data provider Dealroom.

The amount of investment raised in startups across the UK was around $40bn for the year. 

More than 60% of all funding for companies in London in 2021 came in rounds of $100m or more. There were 64 of those last year, far more than in 2019 (18) and 2020 (19). And there are no signs of a slowdown, the agency notes. 

London also saw more tech companies worth $1bn or more in 2021, up 20 in a year, with 75 new "unicorns" in the UK capital.