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How London became the rest of the world’s startup capital

economist.com

11–20 of 374 posts

Re: How London became the rest of the world’s startup capital

#11
post #9

Yup, London has consistently showing up in geographic hotspots in my job postings data. I think it could be also be due to success of companies like DeepMind. https://jobswithgpt.com/blog/global_software-engineering_job...

Another British company swallowed by the US :(

Re: How London became the rest of the world’s startup capital

#12
post #6

A different perspective: https://x.com/aakashgupta/status/2016375397131420005 TL;DR: What London actually built is Europe’s most efficient farm system for US acquirers. The city does the expensive, risky work of finding founders, funding early rounds, and proving product-market fit. American companies wait until the risk is de-risked, then buy the winners at discounts enabled by London’s shrinking public markets.

> enabled by London’s shrinking public markets

That doesn't seem to be true?

Re: How London became the rest of the world’s startup capital

#13
post #6

A different perspective: https://x.com/aakashgupta/status/2016375397131420005 TL;DR: What London actually built is Europe’s most efficient farm system for US acquirers. The city does the expensive, risky work of finding founders, funding early rounds, and proving product-market fit. American companies wait until the risk is de-risked, then buy the winners at discounts enabled by London’s shrinking public markets.

London and UK for that matter is great and seeding Startups...high quality universities, entrepreneurialism and attractive tax benefits for angels but for real growth capital it lags massively behind US and has forever.

The Kraken story is one to follow to see if this changes...https://www.british-business-bank.co.uk/news-and-events/news...

Re: How London became the rest of the world’s startup capital

#14
post #6

A different perspective: https://x.com/aakashgupta/status/2016375397131420005 TL;DR: What London actually built is Europe’s most efficient farm system for US acquirers. The city does the expensive, risky work of finding founders, funding early rounds, and proving product-market fit. American companies wait until the risk is de-risked, then buy the winners at discounts enabled by London’s shrinking public markets.

This.

Also UK contract law is well established and it's easy to find experienced transatlantic lawyers and firms (there's a reason UK lawyers can practice in NY and why both Hong Kong and the Emirate of Dubai kept poaching British judges with contract dispute into their business judiciary).

In most cases when we'd invest in a startup abroad, the founder would often structure their startup as a subsidiary of a US, UK, Singapore (especially Indian/Chinese startups), or Cayman Islands (it's a BOT so you basically get it for free) corporation.

Ironically, this ease of financial access is what makes it difficult to seed a lasting DeepTech startup in the UK because capital would often be deployed to invest in other startup ecosystems. I wrote about this before on HN as well [0][1][2]

[0] - https://news.ycombinator.com/item?id=42768018

[1] - https://news.ycombinator.com/item?id=42767986

[2] - https://news.ycombinator.com/item?id=42763734

Re: How London became the rest of the world’s startup capital

#15
post #6

A different perspective: https://x.com/aakashgupta/status/2016375397131420005 TL;DR: What London actually built is Europe’s most efficient farm system for US acquirers. The city does the expensive, risky work of finding founders, funding early rounds, and proving product-market fit. American companies wait until the risk is de-risked, then buy the winners at discounts enabled by London’s shrinking public markets.

> enabled by London’s shrinking public markets That doesn't seem to be true?

It is - https://www.bloomberg.com/news/articles/2025-09-30/london-dr...

Edit: can't reply

The majority of IPOs in 2025 were in 4 markets - US, China, Hong Kong, India, and South Korea [0]. It's really hard to exit in the LSE currently, and this article is self congratulatory while ignoring major recent (past 2-3 years) mistakes that negatively impacted the entrepreneurship scene in the UK (eg. the revocation of funding for Tech Nation [1] and the ongoing leadership crisis at Monzo [2] which makes no one look good).

[0] - https://www.ey.com/en_pt/insights/ipo/trends

[1] - https://sifted.eu/articles/tech-nation-shutting-down

[2] - https://www.ft.com/content/3405c6f3-931b-4fe3-a169-a9665a132...

Re: How London became the rest of the world’s startup capital

#16

This checks out. I live in Silicon Valley but now work for a startup in London. Same vibe, less attitude. They are not the same. The energy/resources in SF/SV are 5x at a minimum - but London has it going on.

Yeah SF is 10x every other place in earth. People that think things are comparable have never lived here.

Re: How London became the rest of the world’s startup capital

#17

This checks out. I live in Silicon Valley but now work for a startup in London. Same vibe, less attitude. They are not the same. The energy/resources in SF/SV are 5x at a minimum - but London has it going on.

Working for London startups in the past, I've found they're much more polite, but much less honest and straightforward. There's a layer of britishness you have to get past sometimes to get to what people really want instead of directness.

Re: How London became the rest of the world’s startup capital

#18
post #9

Yup, London has consistently showing up in geographic hotspots in my job postings data. I think it could be also be due to success of companies like DeepMind. https://jobswithgpt.com/blog/global_software-engineering_job...

Another British company swallowed by the US :(

At least Elon Musk didn’t end up getting it, which he tried before Google swooped in.

Re: How London became the rest of the world’s startup capital

#19
post #6

A different perspective: https://x.com/aakashgupta/status/2016375397131420005 TL;DR: What London actually built is Europe’s most efficient farm system for US acquirers. The city does the expensive, risky work of finding founders, funding early rounds, and proving product-market fit. American companies wait until the risk is de-risked, then buy the winners at discounts enabled by London’s shrinking public markets.

In football we’d call the US “tap-in merchants”.
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