London named 'Unicorn Capital' of Europe

London is the top choice for international scaleup businesses, according to new research.

The latest data compiled by London & Partners, shows that the UK capital is Europe’s number one tech hub for unicorn companies and attracted more foreign direct investment (FDI) than any other city in 2018.

According to findings by technology and investment advisory firm, GP Bullhound, London is producing more unicorn businesses than any other European city.

London’s technology ecosystem has helped 17 companies surpass the $1bn valuation mark since 2010, over double the amount of other major tech cities such as Berlin (seven) and Paris (four).

London is currently home to 13 unicorn businesses, more than Madrid, Stockholm and Amsterdam combined.

The UK capital’s burgeoning fintech sector is a leading source of scaleup companies, with Monzo, TransferWise and Revolut all featuring in the city’s current crop of unicorns.

The increasing number of high growth businesses coming out of London’s has boosted the UK to the top of the unicorn league tables, with the UK currently housing over a quarter (20) of the 64 total unicorn businesses across Europe.

Since 2010, the UK has created 26 unicorn companies with many going onto even bigger things in recent years.

Online fashion giant Farfetch and peer-to-peer lending platform, Funding Circle are the most recent London unicorn companies to achieve IPO status in 2018.    Latest figures show that, in 2018, London saw more overseas investment than other major international business hubs such as Singapore, New York and Dubai.

Laura Citron, CEO of London & Partners, the Mayor of London’s official promotional agency, said: “London is a top place to start, grow and scale an international business.

“From Artificial Intelligence to Fintech, London is home to lots of exciting companies that are leading the way in developing innovations and ideas to change the world.

“London’s business community is truly global, built on the values of diversity and progressive thinking.

“We’re delighted to welcome more international companies than any other city and today’s figures show that London is open to investment and talent from all over the world.”

Manish Madhvani, co-founder and Managing Partner of GP Bullhound added: “London is the beating heart of the European tech scene, and it is great to see so many unicorns currently based here, along with several contenders that are likely to hit the status next.”