5 Reasons Why Startups Are Flocking to London (and What that Means for You)
Could London be the right city to land your startup dream job? See why you should consider it despite the slightly higher cost of living.
London may not be first on the list of startup cities, but it certainly deserves a spot near the top if you’re job-hunting.
A recent report crowned London the sixth-best startup city[*]. It comes in just after Berlin, Tel Aviv, Helsinki, Stockholm, and Bengaluru.
And London may surpass them all in the next few years.
This city already beats out Boston and San Francisco, which sit at seventh and tenth place, respectively, as a startup powerhouse.
So get ahead of the flock and find out why all the startup jobs are heading to London (and you should too).
5 Reasons Why London is the Next Hot Spot for Startups
New businesses and startup employees alike are taking advantage of a unique and attractive combination of factors.
Here’s why London’s poised to explode:
#1. It’s the Fastest Growing City on Its Continent
London is the fastest growing city in Europe and the third-largest tech hub in the world (behind San Francisco and New York)[*].
It currently has close to 52,000 tech businesses. And these employ roughly 263,000 people[*]. Some reports put this figure even higher at 315,000 employees[*].
Stats from 2018 show that 216,700 new businesses were registered in London[*]. So now the city boasts “1,563 businesses for every 10,000 adult residents”[*].
This makes London an attractive place to find work, especially at a startup. Financial services, pharmaceuticals, AI, data, and energy companies are leading the pack[*].
Plus, London is one of the most accessible cities to begin a career move from Canada or the US to the European market. Transitioning is typically smooth and exciting (versus terrifying and unfamiliar) thanks to a similar way of life and zero language barrier.
Not only that, if you’re leaving a US-based startup, you may also slash your work hours from 15+ hour days to a less stressful eight.
#2. Its Centralized Location Allows Startups to Tap Into Many Nearby Global Markets
London is centrally located, offering both employers and employees access to many different markets.
Many Nordic startups have planted roots in London with the hopes of getting well-established in Europe and one step closer to the US market[*]. This recent shift has been dubbed the “Scandinavian Invasion.”
American startups are also taking advantage of London’s strategic access point.
Having offices in London gives US companies better access to key markets that span the Eurozone[*].
#3. It’s Well-Funded by Venture Capitalists
More venture capitalists are moving money and investing in London-based enterprises. The number of digital upstarts increased by 50% just in the last five years[*]
Current estimates report that London has received $9.4 billion in venture capitalist investments to grow their startup base[*].
Big tech companies like Google, Facebook, and Apple have also hedged their bets on London by building offices and expanding there[*].
#4. Startups Have Access to Local and International Talent
London’s central location also works well for recruiters to source top talent.
Startups can tap into the growing market of local employees, or they can find candidates across the European Union and beyond.
London’s special visa programs make it easier for non-EU tech employees to work in the UK.
But this also means there’s extra competition for jobs. With so much talent to choose from, startups can easily find highly-skilled workers to help them grow their business.
So your resume, cover letter, and application must stand out and get noticed.
#5. Attractive Government Incentives
Finally, new businesses and startups can’t ignore hard-to-beat government incentives.
The Financial Conduct Authority (FCA), or the main financial regulator in the UK, passed a few new ideas to help more startups plant their roots in London.
First, they streamlined the application process so new businesses can get started without needing costly legal representation[*].
Startups that do need legal advice have access to the FCA’s Innovation Hub, which could potentially save new businesses thousands of dollars[*].
On top of that, startups that settle in London may receive two tax breaks: the enterprise investment scheme and the seed enterprise investment scheme.
These were designed to help London-based startups put money back into their business and continue growing. These tax breaks give investors up to $9,000 for every $1,300 they put back into their company (up to $200,000)[*].
The government also benchmarked £2 billion per year for investments in research and technology development[*]. This includes money for robotics, biotech, and more to “ensure the global competitiveness of the UK as a home for scientists, innovators, and tech investors.”
See why more startups are choosing London as their headquarters?
Think you might be interested in checking out your opportunities?
How to Get Your Foot in the Door of a London Startup
If you’re wondering about the best way to find your next startup job in London, you’re in the right place.
We’ve compiled a list of the most current job openings in startups across London. It literally doesn’t get any easier than that.
To see current startup jobs in London, please visit this link now.
Despite being number six on the list of best startup cities, the competition will be fierce. Show hiring managers your personality, tenacity, experience, and confidence. If you don’t land the first job, check back for an even better gig and try again!
Each month we also post hundreds of startup jobs in cities all over the world. Check back often and you’ll never be far from finding your next big opportunity.
After reading this article, are you considering a startup job in London?
If so, check out our latest openings now to find your next gig!
