Data from PitchBook places London in the top ten for having the most ‘developed’ tech ecosystem in the world. London is placed amongst cities like San Francisco, Beijing and Seoul, it’s the only European city to make the top ten with its closest placed city- Berlin – in the top 20.
The ranking is based on the value and number of deals, exits and funds raised from Q3 2017 to Q2 2023.
What does this mean for SMEs?
Essentially, the PitchBook data shows that VCs in London are willing to fund and support innovative small and medium enterprises which optimise tech. It also highlights the quality of SMEs in London, due to the developed ecosystem and willingness to fund.
Further stats from the government show that the UK has more high-growth companies than its European peers having created 144 unicorns, with eight cities that contain more than two unicorn companies including Edinburgh, Nottingham and Oxford.
Data like this shows that London and the UK is still a desirable economy for startups, and in Europe, it provides the best opportunity. Secondly, due to the diversification created by these businesses, the business economy creates roles for other businesses. For example, when a tech company needs an office, property businesses will supply the office, insurance businesses will provide insurance, furniture businesses supply furniture, stationery businesses supply stationery and so on.
As the UK continues to develop, fund and nourish these tech businesses, the general environment for SMEs will improve and develop too, allowing for a road towards a healthy business economy.
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How to make the most of the economy as a small business owner.
As a small business owner in the UK, you have a multitude of options in order to take advantage of London being a VC hub. Firstly, there are many opportunities to pursue external investment. The UK benefits from retaining a status like having a top 10 economy for tech. Therefore, VCs and the government will be working towards investing more and nurturing the economy, which means they will be looking for companies to invest in. Research VC firms which work towards solving problems in your industry. Work on your business plan and evaluate how to incentivise your company for investment.
Finally, if you are not based in the UK, or based in the UK but not registered, this could be your sign to incorporate your company in the UK. Having a Limited Company structure allows you to add an extra level of professionalism to your company, as well as opening you up to investment from UK banks and VCs.
Incorporating your company has never been easier, with included options to protect your personal address from the public register and services to help you get your company in running order.