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London’s climate tech startups raised all-time-high levels of venture capital investment in 2023

London – WEBWIRE
  • London Climate Tech startups raised $3.5B in 2023, up from $2.2B in 2022
  • London ranks number two for climate tech investment globally in 2023
  • London startups collectively raised over $12.9B in venture capital investment in 2023
  • London-based VCs have raised over $24B in funds in last three years
  • London continues to lead as Europe’s number one tech hub

London’s technology sector demonstrates resilience and sustained growth, according to new data from London & Partners and Dealroom. The data shows that London startups collectively raised over in venture capital (VC) investment in 2023, marking a return to pre-pandemic levels of investment following a global pullback in VC after a spike in 2021 and 2022, with the Climate Tech sector showing a clear lead.

The data shows that London continues to lead as Europe’s number one tech hub with London’s startups having raised almost as much investment in 2023 as the next three European cities combined (Paris, Stockholm, and Berlin).

Globally, London ranks as the fourth city by VC raised, after the Bay Area, New York, and Boston. The report also shows that the UK remains the third country globally by venture capital raised in 2023, after the US and China.

Unicorns and High-performance sectors for Climate Tech and AI

Among London’s most promising tech sectors, Climate Tech is blazing a trail having raised $3.5B in 2023, up from $2.2B in 2022. London is also number two globally for climate tech investment behind Stockholm. The top London climate tech startups that have raised the biggest rounds in 2023 included electric vehicle battery company Zenobe Energy (£870M), Octopus Electric Vehicles (£150M), and modular housing company TopHat (£70M).

In addition, in 2023, climate tech made up 23% of Foreign Direct Investment (FDI) into London, twice the percentage of 2022.[1]This includes the world’s largest electric vehicle maker, BYD, which selected London as its UK headquarters, as well as award-winning Cloverly from Atlanta, renowned for its climate action tech, as well as Allume Energy from Australia, specialists in providing shared solar solutions to flats.

In line with the global interest in AI, investment in Generative AI companies in London has exploded in the last two years. In 2023, London-based GenAI startups raised $232M in 2023, which is 20x the total of 2020.

Companies include Synthesia, a Gen AI video company which also achieved unicorn status with a $1.0b valuation. 2023 was a strong year for unicorns in London, with three additional startups achieving valuations over $1 billion, including Quantexa in Decision Intelligence, Reward Gateway offering HR tools, and Zyber 365 in Web3 Cybersecurity.

Venture capital strength in London

VC strength in London remains remarkably resilient, London-based VC investors have raised over $24B of dry powder in the last three years. London-headquartered VC funds account for over 30% of all VC raised in Europe in the last three years.

In addition, London continues to attract a series of large international VCs and funds including A16z, Antler, and BDA Partners, as well as several impact funds including Sustainable Ventures, Octopus Ventures, and 2150.

Laura Citron, CEO of London & Partners said:“London has established itself as one of the global leaders for climate tech. We have fantastic London-based climate innovation, green tech businesses flocking to London from all over the world, and big VC funding for the sector. As VC levels begin to return to pre-pandemic levels, our job is clear: keep building on this momentum to make London an even better ecosystem for startups and small businesses to succeed.”

Janine Hirt, CEO of Innovate Finance said: “It is great to see London continuing to attract large investments for the tech sector, including FinTech. Despite challenging economic headwinds, London and the UK maintain their position as the second-largest global hub for FinTech investment, far surpassing other European counterparts, a true testament to our outstanding ecosystem of founders and entrepreneurs. We are hopeful for positive growth in 2024, and we look forward to working with industry, government, and regulators to maintain the UK’s international leadership in financial innovation, including ensuring proactive regulation and attracting investment across all stages, from seed to critical growth funding”.

Russ Shaw, Founder, Tech London Advocates & Global Tech Advocates: “In difficult economic circumstances, the London tech sector has once again shown its resilience and attractiveness as a home for ambitious companies looking to solve the big issues of our time. Record investment in climate tech highlights the vital role innovation must play in achieving net zero ambitions, while the explosion in funding for AI companies cements London’s leading position in the development of the technologies which will dominate global economies for years to come.”

Andrew Wordsworth, Managing Partner at Sustainable Ventures said: “It comes as no surprise that the latest data from London & Partners and Dealroom shows London is a leading global hub for Climate Tech. Sustainable Ventures is thrilled to be part of the exciting growth of climate tech in London. As Europe’s largest tech ecosystem, London is where we are able to successfully combine our unique model of investment, access great workspaces and expert support services.”


About London & Partners

London & Partners is the business and destination agency for London. Our mission is to create economic growth that is resilient, sustainable, and inclusive. We are a not-for-profit company and operate as a social enterprise, half funded by the Greater London Authority (GLA) and half from other sources including our portfolio of commercial ventures. For more information, visit:

About Dealroom is the foremost data provider on startups, growth companies and tech ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, now works with many of the world’s most prominent investors, entrepreneurs and government organizations to provide transparency, analysis and insights on startups and venture capital activity.

[1] London Welcomes 100th International Tech Company (

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