Image source: www. londontechweek.com
Yes, the question mark is deliberate and a rather solemn addition. It reflects an overarching feeling here that London is losing its tech edge. The US bidding frenzy for London’s start ups, the Wise dual-listing, the lack of AI infrastructure…it’s created a vibe shift, which is hard to ignore as you walk through the buzz at London Tech Week.
International investors are undoubtedly reaping the benefits of the supportive London tech ecosystem. To quote the Communications and Digital Committee of the U.K.’s House of Lords’ Communications “the UK risks being an incubator economy for other nations”.
There’s no denying that the UK has been amazing for start ups. The United Kingdom startup ecosystem ranks 2nd globally and 1st in Western Europe, according to StartupBlink. However, there are signs things are waning. Natwest Group and Beauhurst’s joint New Startup Index notes that the number of new incorporations in London declined by 3.75% in 2024.
At London Tech Week, there’s an urgent rallying call to empower founders to innovate here and – critically – stay here – without systems that stifle the scale up stage. Yes, Keir Starmer said the UK is “unequivocally, unashamedly and defiantly open for business”, but it’s difficult to square these words with the reality on the ground, when three UK companies were securing their exit while he was talking.
As a comms person, you always have to go back to the fundamentals. The London tech scene has a massive comms challenge, because it’s not clearly answering the hardest question facing it: What is London here to do for tech companies in 2025?
And once we have the answer, can we back it up and prove it?
Is it just a place to learn, develop and train? Is it a place to start your business, but not scale? A place for AI-led startups to scale models effectively and safely? The stable grown up in the room in the AI race?
Whatever it is, we’re in need of a narrative reset to remove the horrid question mark and change the vibe.
While indecision prevails, we’re now witnessing a trickle-down effect to the adjacent industries supporting tech brands. It’s abundantly clear that international owners of media groups are de-prioritising London and Europe more generally. The recent layoffs at TechCrunch Europe and Business Insider reflect a new media world order, which does not value the start of a company story, just the bigger US-centric finale.
There is a gap between rhetoric and reality. And we all know, if many start ups exit the UK, others continue to follow. Tight-knit tech communities, like the one found in London, are really impacted by the behaviour of their peers in the community.
With the right message and evidence to prove it, we can reshape the narrative and reassure community members that London is truly open to building and keeping industry leaders.
