London has consolidated its status as the unicorn capital of Europe with almost 50 start-up valued at more than $1 billion based in the capital, according to new research.
The study of unicorns and “near unicorns” - start-ups expected to pass the $1 billion valuation threshold in the next few years - ranks London as the fifth biggest centre in the world behind only San Francisco, New York, Shanghai and Beijing.
The report from researchers Hurun counted 46 unicorns in London, as well as 35 “gazelles” - start-ups since 2000 forecast to reach unicorn status within three years - and 27 “cheetahs” those likely to get to the $1 billion mark within five years.
The combined figure of 108 is more than the next three European capitals combined with Paris on 46, Berlin on 38 and Amsterdam with 12.
It also dwarves any other city in the UK with six unicorns based in Cambridge and three each in Bristol and Oxford. Across the UK as a whole there are 137 unicorns, gazelles and cheetahs but 80% are based in the capital.
To qualify for the index the companies must have been founded this century and not yet sold or listed.
The report identifies the UK - and London in particular as one of the fastest growing hotspots with the combined value of British unicorns tripling from $54 billion in 2020 to $172 billion in 2024. The value of the London-based Unicorns in the Hurun Index is $160 billion. The UK’s future unicorns – gazelles and cheetahs - are today worth $46 billion.
Hurun chairman and chief researcher Rupert Hoogewerf said: “The UK is the best place in the world for unicorns outside of the US, China and India, showcasing that Britain is a magnet for entrepreneurs from around the world, complimenting the extensive homegrown talent already present in the country.
“Since the turn of the millennium, London has firmly established itself as Europe’s centre for high-growth startups, making up 46% of the EU’s unicorns and future unicorns. “This is testament to the city’s unique ability to attract talent, investment and innovation. London continues to set the benchmark for entrepreneurship in Europe, with the city already fostering a next generation of world-class companies able to thrive on the international stage.”
He said the biggest threat to London was the “bigger salaries and ability to write bigger investment cheques” of the US markets.
Almost half the founders of British cheetahs, were born outside the UK, mainly coming from Europe but also from India and the US, suggesting that the UK is a magnet for talent from across the world.
The biggest UK unicorn is listed as Revolut with a valuation of $45 billion. The banking app was founded in London in 2015 by British Russian Nikolay Storonsky, and British Ukranian Vlad Yatsenko .
Next comes payment platform Checkout.com founded in 2012 by Swiss born entrepreneur Guillaume Pousaz and worth $11 billion.
Energy provider Octopus Energy is the most valuable UK Unicorn founded by someone born in the UK. It was set up in 2015 by Greg Jackson, James Eddison and Stuart Jackson, and valued at $7.8 billion. This year Octopus Energy overtook British Gas to become Britain’s largest household energy supplier and is growing in value.
The fintech sector accounts for 38% of the startups on the list, followed by healthcare.
There is also a strong representation for the e-commerce sector, led by recipe box delivery service founded by James Carter and Timo Boldt.
According to the Hurun Research Institute gazelles have an average valuation of US$700 million and are mostly growing at an annual rate of about 20% while cheetahs have an average valuation of US$400 million, and are mostly growing at an average rate of 25%.
Hurun Research found 3,184 unicorns and future unicorns in the world, with the UK taking fourth spot accounting for 4.3% of the world's total, behind the US, China and India.
