London
U.K.
London, famous for its world-class universities, museums and theaters, is one of the oldest and most cosmopolitan cities in the world.
The capital city has four UNESCO World Heritage Sites (the Tower of London, Kew Gardens, Westminster Palace/Abbey/Saint Margaret’s Church, and Maritime Greenwich), and it has long been the world’s financial center. Today it’s also one of its most active innovation ecosystems with a value of $342 billion in 2024. It is consistently recognized as one of Europe’s top three startup ecosystems alongside Paris and Berlin, and Global Startup Ecosystem Index 2025 placed it 12th in the world. London accounts for around 65% of the UK’s total startups, and it has a density of nearly 1,000 startups per million residents, with 9 million people and 8,600 startups (StartupBlink 2025). According to London & Partners, the city’s growth agency supported by the Mayor of London, over the past decade the city has seen more tech foreign-investment projects than any other city globally.
A thriving innovation economy
As the financial capital of Europe and home to major banks and insurance firms, London is a magnet for fintech startups. It also has strong clusters in sectors of the future, such as deeptech, life sciences and cleantech. It was ranked as the #3 world leader in life sciences by the Life Sciences Global Cities Comparison Report 2024, achieving the highest global ranking for its health-research environment, and it has a large life sciences cluster made up of the Imperial College, King's College London, University College London and hospital networks.
In 2024, London-based AI startups raised $3.5 billion in VC funding, making it Europe’s top AI hub and ranking third globally. After the government began focusing on the expansion of AI and data centers and committed to net zero in 2030 (almost doubling funding to renewable energy projects), the International Investment Summit announced a record-breaking $82 billion in investments spanning AI, life sciences, infrastructure and tech. In sustainability, London leads Europe in low-carbon technologies; a 2020–2022 Grow London study ranked it #1 in Europe for low-carbon startup deals.
Other strong arenas are the creative industries such as design, media and gaming; and education, with more than 250 edtech companies, 7 of which place in the UK’s top 10 for equity investment. Grow London reports that edtech startups raised $1.3 billion between 2021 and 2024.
The city is supported by business-friendly policies and initiatives, and programs such as Grow London Global, run by London & Partners, help high-tech scaleups connect to international markets. The £10 million Creative Economy Growth program will also deliver over £3.5 billion in inward investment over the next four years across film, TV, games, animation, visual effects, fashion and design (The Mayor of London's Annual Report 2024-25).
An interconnected academic and talent ecosystem
London has one of the most diverse populations in the world, and 88% of tech business leaders believe that inclusive recruitment and retention is key to driving innovation, creating better products and services, and positively impacting profitability. A significant portion of graduates come from abroad or are fluent in multiple languages, and the city’s high number of universities and research centers feed into its diverse and world-class talent pool. Nine of its universities appeared in the QS World University Rankings 2025 top 500 universities, more than any other city, and it was named the world’s best student city for the sixth year running. Schools such as UCL, Imperial College London, King’s College London and the London School of Economics are global leaders in engineering, business, life sciences and AI research. London’s tech labor pool is among the largest worldwide, with CBRE’s Global Tech Talent Guidebook 2025 reporting between 300,000 and 500,000 tech workers in 2023, on par with New York and Paris.
International delegations and investors
London’s global reputation is reflected in the steady flow of international delegations, investors and trade missions. The city hosts flagship events like London Tech Week and the Global Investment Summit, drawing thousands of foreign entrepreneurs and executives. London Tech Week 2025 is expected to attract 45,000 attendees from 128 countries, including over 200 founders and 30 unicorn CEOs. In 2025, the largest-ever Indian tech delegation, with 350 companies, visited London. India has recently emerged as London’s top foreign investor, with dozens of new Indian companies establishing UK operations every year. The Grant Thornton India Meets Britain Tracker 2025 reported that 505 London-based companies were Indian-owned in 2024, employing 118,000 people in the UK and generating $68 billion in revenue.
The city’s VC community also grew, with London & Partners reporting nearly $10 billion in new London-based VC funds were raised in 2024, close to double the prior year. And London-headquartered startups raised about $10.8 billion in total, putting them collectively at a valuation of around $736 billion.
Living and working in London
London is a truly global city, and its multicultural population is generally very welcoming to outsiders. The city is extremely well-connected: its six airports carried about 177 million passengers in 2024, flying to every major continent, and Heathrow Airport is the world’s top international hub. It’s connected to Europe by high-speed rail, and within the city the transport system is extensive with buses, rail, the Tube, and bike lanes. It’s also increasingly green. Sadiq Khan’s administration has added thousands of electric buses and bike paths in recent years. On average, 97% of individuals are able to access their nearest railway station on foot within 30 minutes. Greater London has 35,000 acres of public parks and green spaces (approximately 20% of the area). In 2019, London became the world’s first National Park City, with almost 50% of the area green and blue (e.g., parks, trees, green roofs, and canals). The city’s commitment to sustainability can also be seen in its extensive bus electrification, cycle hire network and green-building initiatives. For quality of life, London offers cultural richness with internationally recognized theaters, museums, restaurants, and vibrant neighborhoods such as Shoreditch, Canary Wharf and King’s Cross.
Facts and Figures
The London Underground opened in 1863 (making it the oldest metro in the world) and now carries around 4 million passengers daily.
London’s leading industry is software and data, with a ranking of 3rd globally, 1st in Western Europe and 1st nationally. It hosts 4.53% of the world's software and data startups (StartupBlink, 2025).
London hosts more than 200 festivals every year, from the Notting Hill Carnival to the Thames Festival, showcasing its cultural diversity.
The British Museum was the world’s first national public museum, established in 1753, and it now holds over 8 million works.
Over 30 bridges cross the River Thames, including Tower Bridge (1894), one of London’s most recognized landmarks.
Startups
Puraffinity develops advanced adsorbent materials to remove toxic PFAS (forever chemicals) from water. Its Puratech technology delivers broad-spectrum capture with a lifespan of up to seven times longer than conventional resins, and faster treatment, enabling safer, more sustainable water solutions for industries and municipalities.
PhysicsX applies AI to transform industrial engineering, accelerating product development across sectors like aerospace, defense, semiconductors and materials. Its platform optimizes design, manufacturing and operations, enabling breakthroughs in climate transition, resilience and performance by replacing slow simulations with intelligent, scalable models.
Lindus Health is creating a better clinical research experience. It’s rethinking the traditional CRO (contract research organization) and replacing it with a whole new model. By combining software, access to 30 million health records and fixed-price execution, it delivers end-to-end clinical trials up to 72.9% faster for biotech and pharma innovators.
Field develops and operates grid-scale battery storage sites that stabilize renewable energy supply, charging when renewables peak and discharging at high demand. It helps to build the flexible infrastructure that is critical for achieving net zero.
Cocoon develops low-carbon construction materials by transforming industrial waste like steel slag into sustainable cement that permanently stores CO2. By decarbonising steel and cement simultaneously, Cocoon turns waste streams into revenue for manufacturers.
Biohm develops nature-led biotechnologies that replace fossil-based materials with regenerative alternatives. From mycelium insulation to waste-based composites, the scalable innovations help corporations meet decarbonization goals while creating hyper-local supply chains that restore ecosystems, regenerate communities and enhance long-term profitability.
Interviews
Programs to know about
Early-stage startups with industry-specific solutions
Startupbootcamp runs three-month, industry-focused accelerators in fields such as health and life sciences, deeptech and robotics, energy and climate, food and agritech, AI and Web3, and more. Founders gain funding, tailored mentorship, corporate partners and global networks with lifelong post-program support.
Early-stage startups in fintech, deeptech, climate, health
Founders Factory Accelerator partners with startups for six months, combining capital, hands-on operational support and corporate partnerships. With over 400 startups accelerated, it helps founders scale faster through expert guidance, investor access and a global entrepreneurial network.
Exceptional, ambitious individuals (scientists, engineers, technologists or operators)
Entrepreneurs First is a global talent investor that trains and backs exceptional individuals before they have teams or even ideas, through their hackathons and bootcamps. In London, there are four cohorts per year, and in only eight weeks, 80% of participants will find a cofounder.
Early-stage founders with social impact ideas and ambitions to scale
This program invests £60,000 (~$79,000) in ambitious founders whose ventures are creating positive impact. It provides six weeks of intensive support, mentoring and community building to help founders scale solutions that tackle inequality, drive sustainability and improve lives globally.
Funding Opportunities
Octopus Ventures is a B Corp VC firm backing purpose-driven founders from idea to growth. With deep sector expertise, hands-on support and a global entrepreneurial community, it helps build companies that prioritize people, the planet and long-term positive impact.
The London Co-Investment Fund is an £85 million (~$110 million) public-private VC initiative backed by the Mayor of London. It partners with leading investors to match capital and provide strategic support, helping startups scale while strengthening London’s economy and job market.
Having invested in over 250 startups, Balderton is known for its groundbreaking portfolio, its people-first approach, and its transparent sustainable investing policy and reports. The firm cares for founders, recognizing that long-term success requires wellbeing as much as performance.
Atomico is a founder-built VC firm backing Europe’s most ambitious entrepreneurs. It seeks rulebreakers and world shapers and offers hands-on experience and global networks to help transformative tech companies to scale consciously and contribute meaningfully to a better future.
Urban Impact Solutions
London councils are constantly innovating when it comes to climate action. Islington pioneered the Bunhill Heat and Power Network, the world’s first system to capture waste heat from an underground train network and use it to provide low-cost, low-carbon energy to homes and schools. In Hackney, a £1 million (~$1.3 million) community energy fund helps schools, charities and faith groups install solar panels and run education programs. Its microgrid, a UK first, supplies discounted renewable electricity to households across 28 estates. And Kensington and Chelsea are retrofitting schools and social housing, replacing outdated gas systems with efficient heat pumps and insulation.
Launched in 2025 during London Climate Action Week, the Green Roots Fund is a £12 million (~$15.6 million) mayoral initiative to make London’s neighborhoods greener, healthier and more climate resilient. The fund provides grants of up to £500,000 (~$649,000) to boroughs, community groups and local organizations to create or improve parks, gardens, wetlands and rivers. By rewilding communities, restoring habitats, and planting trees and wildflowers, the program tackles both the ecological emergency and social inequality, addressing the fact that one in five London households has no garden. The fund builds on earlier city-greening schemes, empowering communities to benefit directly from nature.