British unicorns, startups valued at over $1bn, have played a leading role in fostering new businesses, surpassing any other European country, according to a new report by Accel and Dealroom. Over the past 25 years, 45 UK-founded unicorns have collectively fuelled the launch of 393 startups, reinforcing the country’s position as a hub for entrepreneurship.
The research highlights a common pattern in the tech industry, where entrepreneurs gain experience at established firms before setting out to build their own ventures. In the UK, this phenomenon has been particularly strong, with former employees of successful unicorns going on to create new startups, contributing to the country’s innovation landscape. London has been central to this growth, accounting for 327 of these startups, while other key cities include Edinburgh, Cambridge, Manchester, Bristol, and York.
“Back in 2000, Europe’s tech ecosystem was nascent,” said Accel partner Harry Nelis. However, 25 years on, our data highlights the vibrant tech ecosystem that exists today and how the network effects that Silicon Valley has long benefited from are now at work across Europe and Israel. A strong pipeline of talent and capital means the flywheel across the region is spinning. Beyond repeat founders, teams with experience across product, engineering, and management have also been on the startup journey before and are applying their insights and learnings to building the next generation of businesses set up for long-term success.”
London at the centre of startup growth
Among the most influential British unicorns, Deliveroo has been linked to 53 new startups, Revolut to 46, Wise to 30, and Monzo to 23. Skyscanner, the only company outside London to make the list, has played a role in launching 23 businesses, including electric courier firm Packfleet. Other notable unicorns contributing to startup creation include OakNorth, Checkout.com, and Cazoo.
Despite this success in startup creation, the UK has long struggled with scaling its businesses into unicorns at the same rate as the US or China. Many British startups face difficulties in securing later-stage funding, forcing them to sell or relocate before reaching billion-dollar valuations. However, this report suggests that while unicorn creation remains a challenge, the UK has excelled in generating a continuous cycle of startup activity.
The study found that the UK outperformed other European nations in startup generation. While Swedish firms Klarna and Spotify led in individual startup creation with 66 and 61 startups, respectively, the overall impact of British unicorns was far greater. In total, 26 European unicorns have each led to the creation of more than 20 startups, with a significant number of them based in the UK.
A key finding of the report was that most new startups founded by former unicorn employees remain in the same city, reinforcing London’s status as a major technology hub. While the UK still faces barriers to scaling businesses into global giants, the data suggests that its unicorns are playing a crucial role in sustaining a strong pipeline of innovation.
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