London is globally ranked fourth for VC tech investment

London setting new records is a significant moment for the city and a milestone in the United Kingdom's development as a world-leading tech nation, according to Russ Shaw CBE, Founder of Tech London Advocates and Global Tech Advocates. According to Shaw, our tech sector has now become an essential part of the global tech industry, alongside the United States, China, and India.

London recorded $25.5 billion in VC investment last year, making it the fourth-biggest capital for VC investment globally.

London ranks behind San Francisco ($98.5bn), New York ($47.5bn) and Greater Boston ($29bn) for venture capital investment.

London & Partners and startup data firm Dealroom's research reveals that large megarounds of $100m or more and high-profile exits propelled London up the VC investment rankings.

There were a record 20 unicorns in London's tech ecosystem in 2017, made up of dry powder and new fintech Starling Bank, among others.

London has 75 unicorns, putting it once again in fourth place globally behind San Francisco Bay Area, New York, and Boston, in terms of the number of unicorns.

64 megarounds occurred in 2021, a sign that London's tech sector is maturing since such rounds usually occur in later-stage scaleups.

Fintech Revolut raised $800 million in London in 2021, and clean energy supplier Octopus Energy raised $900 million.

In 2019, London fintechs attracted the most capital – $11.6bn – but telecoms, health, and impact technology startups all experienced strong growth in 2021.

The UK ranks behind the United States, China, and India in terms of VC technology investment nationally.

London's record-breaking tech scene has been identified as a critical sign of the UK's global reputation as a tech powerhouse, according to Russ Shaw CBE, Founder of Tech London Advocates and Global Tech Advocates. "Our tech sector has grown to the stage where it is now comparable to the US, China, and India, all of which are renowned for their tech sectors," Shaw said.

London is the "beating heart" of British tech.

Non-London founders and investors might view London investment figures differently. Across the UK, tech firms raised $14.3bn - just over half of the capital pumped into the capital - excluding London.

According to UKTN, investment is being diverted away from other parts of the United Kingdom due to London's fixation with the technology sector.

According to Gerard Grech, founder and former CEO of Tech Nation, London is the "throbbing heart" of the UK's network of tech hubs, which house startups and scaleups across the nation.

London-based venture capital firm LocalGlobe's Saul Klein is of the opinion that this viewpoint is true.

Klein noted that capitals connect tech clusters like Cambridge, Oxford, and Manchester to Paris and Amsterdam, and beyond.

Last year, London-based VCs raised a record $9.9bn, accounting for 35% of all new European VC funds.

Index Ventures, Balderton, and 83North all raised significant amounts, ranging from $3.1 billion to $600 million.

Investors in the US are expected to continue investing heavily in UK tech startups in 2022, driving the upward trajectory.

According to Eileen Burbidge, Partner at London VC firm Passion Capital, London and the UK tech sector as a whole are doing better than ever before, making the UK a global competitor. It's wonderful to see that London tech companies are attracting large amounts of funding across the funding phases, demonstrating that our tech ecosystem is thriving and that our entrepreneurs are the best.

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