London has one of the world’s best ecosystems for globally ambitious start-ups, second only to Silicon Valley, according to The Global Startup Ecosystem Report 2020 from Startup Genome.
This year’s study puts London in joint second place (with New York), up from joint third place last year and ahead of Beijing (4th) and Boston (5th). In the inaugural report in 2012, London was ranked eighth.
Factors that make London an ideal launchpad to scale and grow internationally include its favourable time zone; high levels of connectedness between different ecosystems (e.g. medtech, edtech and fintech); good access to capital and investment – an average seed round in London is $650k, compared to $494k globally; and a strong, global talent pool thanks in part to the startup visa program launched in 2019.
Since 1990, London’s startup ecosystem has produced 38 unicorns (companies valued at over $1bn), more than any other city in Europe, according to analysis by Dealroom.