AI startups in London have received record-high investments, now accounting for 32% of all venture capital funding in the city, according to the latest data from London & Partners and Dealroom. AI startups based in London raised a record $3.5 billion in venture capital in 2024. This is a 52% increase compared to the $2.3 billion raised in 2023 and 21% higher than the previous record of $2.9 billion set in 2022. Startups based in London raised a total of $10.8 billion in 2024 and are now valued at $736 billion combined. London has created 120 unicorns so far, withvarious new ones added by 2024. These include EyeBio, IntraBio, Flo Health, Builder.ai, Minute Media, and Preqin, along with AI companies Wayve, Lighthouse, and ElevenLabs.
London health AI startups raise second highest year on record
AI in London’s health sector is drawing a lot of investment. In 2024, health AI startups in the city raised over half a billion dollars ($556 million). This was the second-highest amount ever, following 2019’s $740 million, which included a big $550 million funding round for Babylon.
In 2024, 33 health AI startups in London secured new funding. Among them, 10 companies raised over $10 million each, including Flo Health, Huma, Basecamp Research, LabGenius, Relation Therapeutics, Scarlet, IMU Biosciences, Bioniq, Limbic AI, and Baseimmune.
London VCs almost double levels raised in dry powder
London-based venture capital investors raised $9.9 billion in new funds in the past year. This is nearly double the $5 billion raised in 2023 and almost matches the $11 billion raised in 2022.
In 2024, eight large London-based funds, each worth $400 million or more, were raised. These included Index Ventures, two funds from Atomico, Corten Capital, two funds from Balderton, Plural, and 20VC.
Megarounds of $100M+
London startups raised a total of 20 large funding rounds of $100 million or more. These included rounds for companies like Wayve, Monzo Bank (twice), Highview Power, Lighthouse, WorldRemit, Deep Green, Flo Health, Nscale, Flagstone, Char.gy, Myricx Bio, Skyports, Purespring Therapeutics, Builder.ai, Abound, MAR mining, Amber Therapeutics, Vicebio, Kaluza, and Tessl.
Laura Citron OBE, CEO of London & Partners, the growth agency for the capital, said:
“In 2024, London proved its status as a global hub for AI, with record investment flowing into our companies. The numbers say it all – this milestone reinforces our leadership in driving AI innovation worldwide. Frontier innovation, including AI and life sciences, will be at the heart of London’s 10-year Growth Plan, to be published next month.”
Catherine Lenson, COO at investors Phoenix Court, said:
“It is no surprise to see such growing momentum in London. With its combination of world-class talent, access to capital, and a supportive regulatory environment, a new generation of technology companies with the potential to become national, regional, and global champions are being born. From our own neighbourhood of Somers Town, nestled between Kings Cross, St Pancras and Euston stations, we are investing in companies solving real-world problems who are also making sure the benefits of their innovation are being truly distributed”
Hannah Seal, Partner at venture capital firm Index Ventures, said:
“The record-breaking investment in AI startups in 2024 highlights both the immense growth opportunity of the sector and the continued strength of the UK’s talent pool. Index Ventures-backed companies are set to create over 2,000 new jobs in the UK this year, thanks in no small part to AI’s momentum. So, tackling the talent bottleneck must be a top priority for the government to maintain London’s competitive edge on the global stage.”
Mati Staniszewski, Co-founder of AI voice generator ElevenLabs, which opened a European headquarters on Wardour Street last year, said:
“The ElevenLabs team was initially attracted by London’s leading universities, as well as the city’s strengths in AI research and safety. London provides access to a deep pool of talent across AI, tech, as well as media and entertainment, which is central to our customer base. London’s status as a creative hub has also enabled us to build valuable partnerships while growing our business.”
Joshua Blight, Co-founder and CEO of Baseimmune, said:
“As a Biotech using AI to design next-generation vaccines, access to exceptional talent, high-end laboratories, and highly developed support networks is key to success. London offers this in huge quantities, making it a simple decision when founding Baseimmune.”
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