London Ranked Third in Global Startup Ecosystem Report 2025 by Startup Genome

The 2025 Global Startup Ecosystem Report (GSER) by Startup Genome has revealed London as the third-ranked startup ecosystem globally. The city generated $342 billion in Ecosystem Value between July 2022 and December 2024, excelling in funding, talent retention, and performance. 

London’s status as a global startup hub has been solidified once again with the 2025 Global Startup Ecosystem Report (GSER) by Startup Genome, where the city claims the #3 spot globally, trailing only behind two AI-centric powerhouses, the U.S. and China. 

The GSER, the world’s most comprehensive study of entrepreneurial ecosystems, provides crucial insights into the factors driving startup success across more than 350 innovation ecosystems worldwide. With a diverse set of innovations and an environment primed for AI-native startups, London’s continued dominance underscores its critical role in shaping the future of technology and entrepreneurship.

London: A powerhouse of startup growth

London’s ecosystem value has soared, with a reported $342 billion in ecosystem value generated between July 2022 and December 2024. Ecosystem value, calculated as the value of exits and startup valuations, highlights London’s robust economic impact in the global startup landscape. The city stands out globally in several key performance areas, continuing to solidify its position as Europe’s top startup hub.

Released at VivaTech in Paris, the report reveals the dynamics of global startup ecosystems, underscoring the continued rise of Asia and Africa while parts of Europe see a decline. 

For the first time, the report introduces an AI Factor, tracking how cities and countries are adapting their ecosystems to support the burgeoning AI industry. As AI funding concentrates heavily in the U.S. and China, London’s commitment to nurturing AI-native startups has been pivotal in its high ranking.

Impressive funding and talent metrics

The GSER ranks London as the #3 global ecosystem in both funding and talent & experience. These metrics focus on the ability of an ecosystem to generate early-stage funding, foster long-term trends in talent retention, and attract skilled professionals. London’s ability to lead Europe in these domains is indicative of its strong support for high-growth sectors and the ongoing evolution of its tech scene.

“London is undeniably a leader in creating and retaining talent within its startup ecosystem, which is integral to fostering long-term growth and innovation.This success can be attributed to London’s bold approach in incorporating AI-native policies into its entrepreneurial fabric,” said JF Gauthier, Founder & CEO of Startup Genome. “

Performance and knowledge excellence

When it comes to performance, London ranks #5 globally, with an impressive tech startup valuation built on strong funding and significant exits. In the field of innovation, the city is in the Top 10 globally and holds the #1 position in Europe for knowledge-driven growth. London’s investment in research and development, as well as its commitment to expanding patent activity, has ensured it remains at the forefront of global technological progress.

The GSER’s comprehensive analysis also brings attention to London’s key strategic focus on AI-driven growth. With AI’s integration into multiple industries, London’s efforts to build a thriving AI-native ecosystem will be crucial as the city seeks to expand its share of global AI investment. As startup ecosystems pivot towards AI, London’s leadership will help it retain its competitive edge in the evolving global market.

Global shifts and the role of AI in ecosystem growth

The 2025 report marks a significant shift in global startup dynamics. While the global startup ecosystem value has decreased by 31% compared to previous years, cities and regions that embrace AI innovation and implement AI-native policies are pulling ahead.

As highlighted by JF Gauthier, “The future belongs to nations and cities that combine bold vision with new AI-native startup policy action to hitch the AI wave.” London’s focus on AI provides a solid foundation for continued growth, even as the broader global landscape faces a correction.

With its top-tier rankings in several key categories, London’s startup ecosystem is clearly positioned to thrive despite the global downturn. The city’s commitment to nurturing talent, securing funding, and fostering innovation makes it a model for other ecosystems around the world. 

As the future of AI continues to shape the next wave of entrepreneurial growth, London is not just keeping pace—it’s leading the charge. Through strategic policy initiatives and targeted investments, London is set to continue its journey as one of the world’s most dynamic startup ecosystems.

About Startup Genome

Startup Genome is the world’s leading organisation dedicated to innovation ecosystem development, with a focus on catalysing startup success. Having worked with over 180 economic and innovation ministries, Startup Genome’s evidence-based ecosystem research, advisory, and scaleup programs continue to help cities and countries capture their fair share of the new economy. 

With a unique data-driven approach, Startup Genome has consistently demonstrated that startups can significantly impact economic growth and job creation, offering a clear roadmap for success.