London-based AI start-ups secured a record $3.5 billion (£2.9 billion) in venture capital investment last year, maintaining the city’s position as Europe’s leading tech hub.
According to the latest figures from analysts Dealroom and the Mayor’s growth agency London & Partners, AI investment surged by over 50% from $2.3 billion in 2023 and surpassed the previous record of $2.9 billion set in 2022 by 21%.
The data reveals that London continues to dominate AI venture capital investment in Europe, ahead of Paris ($2.4 billion) and Munich ($763 million). Globally, the capital ranks third, trailing only New York ($6.1 billion) and the Bay Area ($60.7 billion) in California’s Silicon Valley.
Health emerged as a particularly strong sector, with 33 companies raising $556 million.
These impressive figures coincide with Keir Starmer’s recent launch of an action plan aimed at positioning the UK as a global AI leader.
AI start-ups accounted for over a third of the $10.8 billion raised across the broader tech sector. London now boasts 120 unicorns, with eight companies achieving unicorn status in 2024. Notable additions include EyeBio, IntraBio, Flo Health, Minute Media, and Preqin, alongside AI pioneers Wayve, Lighthouse, and ElevenLabs.
