Is London a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

London has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what London gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in London

Funding is one of the most critical ingredients in building a successful startup – and London offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

London remains a significant hub for early-stage startup funding, attracting investment from various sources. Notable VC firms active in the early rounds include Seedcamp, Passion Capital, and LocalGlobe. Angel networks like London Business Angels and Angels Den also play a crucial role in providing capital and mentorship. Government support is available through initiatives like Innovate UK grants and the Seed Enterprise Investment Scheme (SEIS), which offers tax relief to early-stage investors. Despite this, challenges persist. Competition for funding is high, and while early-stage investment is strong, there's a recognized "scale-up gap" where companies struggle to secure later-stage funding compared to ecosystems like the US. Total UK startup funding saw a decrease in 2024 compared to 2022 levels, indicating a tighter capital environment.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

London has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

London boasts a dynamic startup and innovation culture, marked by a high concentration of entrepreneurial activity and a thriving tech sector. The city is home to numerous coworking spaces catering to startups of various sizes and stages, fostering a sense of community and collaboration. London hosts a wide array of tech events, conferences, and networking opportunities throughout the year, including major events like London Tech Week, which attract global participants. While the ecosystem supports startups at different stages, there's a recognition of the need for tailored support for early-stage founders, moving away from purely standardised programs towards more personalised guidance. Government initiatives and various funding schemes also contribute to supporting entrepreneurship, including those specifically aimed at early-stage companies.

For many entrepreneurs, the energy and resources available in London can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like London, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in London is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

London has a large and diverse talent pool, making it a strong ecosystem for startups. The city benefits from numerous world-class universities that produce skilled graduates across various disciplines, including technology, business, and finance. Industry-specific skills are abundant, particularly in tech sectors like FinTech, Healthtech, Edtech, and Greentech. There is high demand for technical skills such as software development, cloud computing, cybersecurity, data science, and AI/ML. Beyond technical expertise, startups also seek soft skills like problem-solving and adaptability. Local talent supports entrepreneurial growth through a strong network of experienced professionals, mentors, and a diverse workforce. Universities actively support startups through incubators, entrepreneurship programs, and by providing access to expertise and resources. This combination of educational output, specialized skills, and a supportive ecosystem contributes significantly to London's position as a leading startup hub.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in London can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

London boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

London offers a robust infrastructure for startups, including numerous co-working spaces and a strong network of accelerators and incubators like Techstars London and Seedcamp. These provide essential resources, mentorship, networking opportunities, and access to funding, helping businesses scale. Key areas like Shoreditch and Old Street are hubs for tech startups, while Canary Wharf focuses on FinTech. Government initiatives also support the ecosystem. The UK Shared Prosperity Fund co-funds programs aiding small businesses and promoting growth in sectors like the net zero economy. National schemes like Start-Up Loans provide finance and mentoring, while Innovate UK offers funding for innovative projects. The Seed Enterprise Investment Scheme (SEIS) encourages investment in early-stage companies through tax relief. These combined resources contribute significantly to London's thriving startup environment.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in London. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can London Be Considered the Best Place to Launch a Startup?

There’s no doubt that London provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in London face significant challenges. Competition is fierce across various sectors, requiring founders to be strategic and innovative. The high cost of living and doing business in London is a major barrier, impacting everything from office space rent to attracting and retaining talent who face high living expenses. Additionally, navigating complex regulatory requirements, including tax and employment laws, can be daunting and costly for new businesses. Post-Brexit regulations also add complexity, particularly concerning trade and hiring.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in London or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while London offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash