The London tech scene has been named as one of the best technology ecosystems in the world, according to Startup Genome.
Startup Genome’s ‘The Global Startup Ecosystem Report 2020’ investigated the best environments for early-stage startups to thrive.
In the 2019 report, London came joint third, an improvement on its 2012 ranking of 8th, but improved on that this year, coming in at joint second with New York. Silicon Valley was first in the rankings, with Beijing and Boston at fourth and fifth.
According to Startup Genome, London’s ranking was due to “access to capital, investment and global talent”. It also found that the UK’s capital benefits from connectivity to other global cities, overtaking New York and Silicon valley in this area, which is based on the number of tech meetups, accelerators and incubators, research grants, and R&D anchors.
Startup Genome also highlighted London’s strong talent pool, particularly STEM and tech talent. The city is the only top-five ecosystem with a startup visa programme.
In the context of the global Covid-19 pandemic, London’s life sciences sector has also stood out due to its 350 medtech companies and world-leading universities. Edtech and fintech were also highlighted as two of the London tech scene’s strongest sub-sectors.
Furthermore, access to high-quality funding also “demonstrates the depth of capital in the ecosystem”, with the average seed round in London standing at $650k, compared with the global average of $494k.
JF Gauthier, Founder of Startup Genome said:
“Today’s global report ranks the best cities where startups can build global success. Startup ecosystems outperform when their entrepreneurial community is not only open to but deeply integrated within the global startup community.
“This is certainly the case for London, as it continues to play a central role in the global fabric of startup ecosystems and in only eight years has risen from number eight to a tie in second place. The Covid-19 crisis has accelerated the transition to the digital economy and has called for entrepreneurs to innovate faster. This is a unique opportunity for all of us to take concrete actions to make our economic communities stronger and more inclusive, so they are powerful engines of economic recovery.”