London’s technology sector is heading for another bumper year of investment after 2021 saw record amounts of venture capital (VC) injected into the capital’s tech firms, new research has revealed.
London-based tech firms raised $25.5bn last year, doubling 2020 investment levels and minting a record 20 so-called ‘unicorns’ – firms valued at over $1bn – according to a report from London & Partners and Dealroom.
London now boasts 75 unicorns with insuretech firm Marshmallow, SaaS company TrueLayer and fintech firm Starling Bank among the newest additions to the pack.
Eileen Burbidge, Partner at London VC firm, Passion Capital said: “London and the rest of the UK’s tech sector continues to go from strength-to-strength and means that the UK is now competing on the global stage.
“It’s fantastic to see that London tech companies are attracting large volumes of capital across all stages of the funding journey as a sign that our tech ecosystem is truly flourishing and our entrepreneurs are second to none.”
London-based VC firms also raised $9.9bn in new funds in 2021, providing record levels of dry powder to pump into the sector this year.
The capital saw a spate of major new London-based funds launching in 2021, including Index Ventures ($3.1bn), Balderton ($600m) and 83North ($550m).
London ranked fourth globally for VC investment in 2021, trailing only the San Francisco Bay Area ($98.5bn), New York ($46.3bn) and Greater Boston ($28.3bn).
Laura Citron, CEO at London & Partners said: “London is now a truly mature global technology capital – we have big pools of later stage funding, nearly two new unicorn companies every month, and massive funding rounds and exits.
“This data shows that London is not only a brilliant place for entrepreneurs to start businesses, but also to grow them to a global scale.
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