London leads as Europe’s deeptech capital, raising $4.2B in 2024

I think VC is moving deep, in general - and I think that opens a gap for Europe and the UK to compete on our strengths.

With GenAI dropping the execution bar for B2B SaaS, scale is no longer a moat. Fewer engineers, faster builds, and hyper-targeted, profitable niches make traditional growth capital less necessary. If 'vibe coders' replace full-stack teams, the venture model - rooted in power laws and scale - will shift from SaaS to deeper tech where capital intensity and defensibility still matter.

In that context, London is cementing its role as Europe’s undisputed deep tech capital, raking in a record-breaking $4.2 billion in funding in 2024 alone - more than double the amount raised by Paris or Berlin and nearly five times the total raised by Stockholm.

According to the newly released 2025 European Deep Tech Report by Dealroom, Lakestar, Hello Tomorrow, and Walden Catalyst the UK’s capital city has emerged as the beating heart of Europe’s deep tech ecosystem. While countries like Germany and France continue to invest heavily in next-gen technologies, London has carved out a unique advantage as a magnet for capital, talent, and commercialization expertise - particularly in AI, biotech, and compute.

In 2024, European deep tech startups collectively raised $17.7 billion. Of that, UK-based companies attracted $5.3 billion - 30% of the continent’s total haul - with London alone accounting for $4.2 billion. That means nearly a quarter of all deep tech investment in Europe last year was funneled into London-based startups.

To put this in perspective, the UK raised more than the next two countries combined: Germany raised $2.8 billion and France pulled in $2.3 billion. The data confirms that London isn’t just holding its own on the continent - it’s lapping the field.

This is no accident. As the report notes, London combines deep academic excellence, a robust investor network, and a strong startup-to-scaleup pipeline - critical ingredients for deep tech success.

London’s dominance is powered by emerging clusters in AI, quantum computing, and biotechnology. AI alone accounted for $2.7 billion of the UK’s deep tech funding in 2024. Companies like Synthesia, Wayve, and Stability AI are capturing global investor attention and, in some cases, setting the pace internationally.

Quantum computing is another standout. The report highlights the UK’s position as Europe’s quantum leader, with companies like Oxford Ionics and ORCA Computing raising rounds and expanding globally. This momentum is supported by a national quantum strategy backed by £2.5 billion in government funding over the next 10 years, with London universities like UCL and Imperial College contributing cutting-edge research.

This fusion of academia and entrepreneurship is particularly potent in London. The city benefits from a high density of spinouts and lab-based startups, many supported by venture builders, accelerators, incubators, and corporate partnerships. According to the report, 26% of deep tech funding in Europe goes to university spinouts, and London-based institutions like UCL, Imperial, and King’s College are playing outsized roles in that mix.

While Paris is home to powerful government-backed accelerators like Station F and receives strong public funding via Bpifrance, London seems to be winning the private capital race. The UK’s relatively founder-friendly equity culture and deeper late-stage capital markets make it easier for companies to scale.

The UK also dominates in IPOs and public market exits. Despite macroeconomic headwinds, the report notes that London-based deep tech companies made up a majority of the continent’s IPO pipeline in 2024. This includes companies targeting markets in defense tech, synthetic biology, and next-gen materials.

Venture capital continues to flow into London at a rate that puts other hubs to shame. The report shows that the UK is home to over 50 dedicated deep tech funds, more than any other European country. These include specialist players like IQ Capital, AlbionVC, and Future Planet Capital, alongside multi-stage giants like Balderton, Molten Ventures, and Index Ventures.

Crucially, the UK also attracts significant non-European capital, particularly from US-based investors. Roughly 28% of the capital invested into UK deep tech companies in 2024 came from non-European VCs - double the European average. That global investor appetite is vital for capital-intensive sectors like semiconductors, nuclear fusion, and space tech.

Despite London’s clear lead, challenges remain. The report flags the “valley of death” between early-stage innovation and late-stage scale-up capital as a persistent risk. While London excels at seeding and growing deep tech startups, the UK still lags behind the US and China in terms of domestic manufacturing, infrastructure, and sovereign tech investment.

Policy momentum is building to address that. The UK’s recent £25 billion commitment to AI compute infrastructure, plus new public-private partnerships in defense and health tech, signal a more proactive stance.

Still, the message from the report is clear: London’s deep tech ecosystem has a competitive edge. With over $4.2 billion raised in a single year - and an unmatched blend of talent, capital, and ambition - London is positioned well to lead on deep tech globally.