London Tech Week: Capital ranks as “world leading” tech startup hub with £259bn value

London continues to rank as one of the world’s leading places to set up and grow a tech startup, according to a new report from Startup Genome.

Launched at London Tech Week, the 2022 Global Startup Ecosystem Report, placed London as the world’s number two startup hub alongside New York, and second only to Silicon Valley.

According to the research, London’s startup ecosystem has demonstrated its resilience despite Brexit and the pandemic, securing the second spot for the third year in a row.

The findings also confirmed London’s status as the undisputed tech capital of Europe, with an ecosystem value of $314bn (approx. £259bn), significantly higher than the likes of Berlin (£77bn) and Paris (£73bn).

The report ranks the leading 140 startup ecosystems globally based on seven success factors including talent, market reach and connectedness. Silicon Valley held onto the top spot this year while Boston and Beijing came in fourth and fifth respectively.

A number of other UK hubs also featured in the reports ‘Top 100 Emerging Ecosystems’ including: Bristol, Manchester-Liverpool, Birmingham, Edinburgh-Glasgow, Belfast and Durham.

The Global Startup Ecosystem report ranked London highly for access to funding, with the study recognising the UK capital’s strengths for access to early-stage investment and the amount of local investors.

London’s “impressive” start to 2022 has been boosted by major funding rounds for some of its fastest growing tech companies, including: a £257m Series G for London fintech, GoCardless; £165m Series D for software payments provider, Paddle; and £82m for online recipe kit firm, Gousto.

Mayor of London Sadiq Khan, commented: “London is the undisputed tech and innovation capital of Europe, and this independent report demonstrates that our start-up ecosystem is also one of the most diverse and vibrant in the world.

“The record levels of investment we’ve seen so far this year offers further proof that London’s tech sector continues to go from strength-to-strength.

“I’m looking forward to welcoming the global tech community for this year’s London Tech Week, a great opportunity for us to strengthen partnerships across the world and build a better London for everyone.”

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