London crowned capital of European tech

Almost three times as many startups chose London as their nursery ground over Paris, the next-most attractive European city for tech entrepreneurs.

Around 1,000 “international tech investment projects” based themselves in London between 2005 and 2014 – compared with 381 in Paris, and 853 in the whole of France.

Mayor of London Boris Johnson said it was “hardly surprising” that the world was “clamouring to be part of the incredible London tech story”.

The research, published by EY to mark London Technology Week found that 52% of global investors cited London as the most attractive European city for foreign direct investment.

“This sector has flourished beyond recognition in the last five years, creating thousands of jobs and outpacing the rest of the economy,” added Johnson.

“London Technology Week is rightly a celebration of that success. Now we need to continue our work to boost connectivity across the capital and arm the tech stars of the future with the skills they will need to drive forward this valuable industry for years to come.” 

Caroline Artis, EY’s London Senior Partner, commented: “In the eyes of international investors, London is a truly world-class magnet for FDI. 44% of respondents quoted the city’s ‘international business culture’ as a stand out feature, compared to their European counterparts.

“Fostering innovation, the capital has a rising reputation as a location for R&D investments and appears to reflect the electrifying impact of the fast-growing East London Tech city, commonly known as ‘Silicon Roundabout’.

“Asked which three cities in the world are the most likely to produce the next tech giant, investors ranked London in fifth place.”