AI venture capital (VC) investment in London has hit an all-time high, making up 32% of overall VC investment in the city according to the latest data from London & Partners and analysts Dealroom.
London-headquartered AI start-ups raised a record $3.5bn in VC in 2024, a 52% increase on the levels raised in 2023 ($2.3bn) and 21% higher than the previous record set in 2022 ($2.9bn).
The data also shows that London leads in Europe for AI VC investment, followed by Paris ($2.4bn) and Munich ($763m), and ranks third globally following only New York ($6.1bn) and the Bay Area ($60.7bn).
Overall, London-based start-ups collectively raised $10.8bn in 2024 and are now worth a combined $736bn. London has produced 120 unicorns to date, with eight companies becoming unicorns in 2024, including EyeBio, IntraBio, Flo Health, Minute Media, and Preqin, as well as AI companies Wayve, Lighthouse and ElevenLabs.
Second highest year on record
When it comes to AI in London, the health sector is attracting considerable investment. In fact, over half a billion dollars was raised by London health AI start-ups in 2024 ($556m). This was the second highest year on record, after 2019’s $740m total, which included a significant round of $550m for Babylon.
When looking at companies, 33 London health AI start-ups raised fresh funding in 2024. In addition, 10 companies raised rounds of more than $10m: Flo Health, Huma, Basecamp Research, LabGenius, Relation Therapeutics, Scarlet, IMU Biosciences, Bioniq, Limbic AI, and Baseimmune.
The past year saw London-based VC investors raise $9.9bn in new funds. This is almost double the levels raised in 2023 ($5bn) and close to meeting 2022 levels ($11bn).
Overall, in 2024, eight London-based funds of $400m-plus were raised including Index Ventures, Atomico (x2), Corten Capital, Balderton (x2), Plural, and 20VC.
Twenty megarounds of $100M-plus were raised by London startups last year. These include rounds for: Wayve, Monzo Bank (x2), Highview Power, Lighthouse, WorldRemit, Deep Green, Flo Health, Nscale, Flagstone, Char.gy, Myricx Bio, Skyports, Purespring Therapeutics, 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 start-ups 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 alone 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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