Tech small and medium-sized enterprises (SMEs) in the City of London continue to thrive, attracting £7.2 billion in private investment since 2019, according to the Tech SME Landscape report released today by the City of London Corporation.
The report highlights the range and diversity of tech SMEs based in the Square Mile, including fintech, data, and AI firms, which are scaling rapidly and benefiting from London’s dynamic ecosystem, unparalleled market access, and vast support networks.
In the first three quarters of 2024 alone:
- Investment in tech SMEs across the City reached record highs, with fintech firms securing £810 million, more than doubling last year’s total of £354 million.
- Data and AI companies also saw substantial growth, raising £383 million, and are on course to surpass the record £514 million raised in 2022.
The City of London’s tech sector reflects the capital’s status as a global innovation hub. London remains home to over a third of the UK’s tech SMEs, as well as nearly 75% of the country’s tech unicorns—private companies valued at over $1 billion (£780m). The Square Mile’s combination of talent, market access, and investment opportunities makes it an ideal location for high-growth businesses across a range of tech industries.
The report follows the launch last year of the City of London Corporation’s first Small and Medium Enterprise (SME) Strategy, a comprehensive plan aimed at ensuring the City of London remains the premier destination in the UK for starting and growing a business.
The SME Strategy outlined several key initiatives. It aims to enhance the visibility and accessibility of support for small businesses, unlock the City’s unparalleled networks, and develop a new support offer aimed at early growth companies and underrepresented groups.
Additionally, it focuses on supporting growing firms to align with the City’s wider economic ambitions, in line with its “Destination City” vision. The strategy also seeks to streamline a fragmented business support landscape and promote inclusivity by assisting a diverse range of founders and teams.
In the next fortnight, the City of London Corporation prepares to soft launch the SME Gateway, an online portal to provide better information to SMEs about how the City Corporation offers to help them set up in the City and access private finance needed to scale up. It will become a key portal to attract, support and maintain relationships with start-ups and SMEs.
SME Gateway will be launched on the 20 February with an event titled Access to Finance for SMEs: Empowering growth through funding and innovation in partnership with major organisations such as British Business Bank, Company of Entrepreneurs and the Federation of Small Businesses.
Policy Chairman of the City of London Corporation, Chris Hayward, said, “As the UK’s leading tech hub, London provides unparalleled advantages in terms of networking, talent acquisition, and funding, making it a magnet for both start-ups and scale-ups. London’s tech sector is globally recognized, ranking first in Europe and fourth worldwide for venture capital investment.
“This vibrant investment landscape is supported by a steady influx of skilled talent, with top academic institutions contributing to a pipeline of tech-focused graduates. Such talent pipelines ensure London remains not only relevant but at the forefront of emerging tech trends.
“But we mustn’t be complacent. To support the tech sector to thrive in the Square Mile, we need to do all we can to encourage growth–a sentiment underpinning the City of London Corporation’s SME Strategy.”
