London is considered the largest and best-connected startup hub in Europe and is therefore attractive for all companies planning international expansion.
A super connected business ecosystem
Within a 25-kilometer radius, young and innovative companies in London find everything they need to grow quickly and successfully. Embedded in a dynamic and vibrant startup scene, nowhere else in Europe or the US do political decision-makers, regulators, corporations, and investors converge in such close proximity. London's mix of traditionally strong industries such as finance, fashion, and advertising, combined with innovative technologies and the creative industries, also offers numerous growth opportunities for Munich-based founders looking to expand.
Capital is crucial during growth phases. The conditions for finding investors are unique in London, as significantly more growth capital is available there than in other hubs. Startups in London raised almost twice as much venture capital last year as in any other European city (source: Dealroom.Co). As a result, the British capital is also the unicorn capital of Europe. Fintech pioneers such as Revolut and TransferWise, the e-commerce platform Farfetch, and the healthtech company Babylon Health have all successfully implemented their business ideas in London.
Another of London's strengths is its pool of skilled workers and talent. Its universities are among the world's best, guaranteeing the job market young, highly qualified graduates, many with international backgrounds. And because more software developers live there than anywhere else in Europe, it's no surprise that, in addition to thousands of startups from around the world, companies like Facebook, Google, and Spotify have chosen London as their second home. From Munich, Lilium, IDNow and Celonis found its way to London in the recent past.
Many German entrepreneurs experience London not only as an important business location, but also as a city with an immense quality of life. The countless restaurants and diverse cultural offerings enable a unique work-life balance. And with six airports, the city is one of the world's most interconnected transport hubs, providing convenient and reliable access from Munich, Germany, and the rest of the world.
London and Munich are closely linked on future issues
In addition to London's attractive startup ecosystem, Munich startups benefit from the close and diverse business ties between the two cities. The important economic centers of London and Munich are united by their European cultural heritage, with its progressive values of diversity and creative ideas. These shared ideals lead to close partnerships between our political decision-makers, businesses, and educational institutions, making it easier for startups to enter a new country.
In many future-oriented industries, such as artificial intelligence, immersive technologies, biotech, and smart cities, there is a lively exchange and collaboration to promote startups based on their respective strengths. For example, Imperial College London and the Technische Universität München have entered into a strategic partnership in education, research, and innovation. They are expanding their collaboration in the research fields of computer science, medicine and medical sciences, bioengineering, molecular sciences, life sciences, physics, energy and new materials, as well as mechanical engineering and aerospace engineering. Naturally, major Bavarian companies are also actively involved in the future of London. In 2019, Siemens announced that it would be testing its latest 5G and IoT technologies for the British market there. Adidas is also using the city as a testbed for innovative ideas: its new, state-of-the-art flagship store on Oxford Street integrates digital technologies into its customers' on-site shopping experience.
Trade and investment relations between London and Bavaria have strengthened in recent years. During a visit in August 2019, the Bavarian Minister of Economic Affairs signed an agreement to strengthen and intensify economic relations between London and the Free State of Bavaria. Since this agreement, the business development agencies London & Partners and Invest Bavaria have regularly cooperated on joint events and supported companies and stakeholders from both regions.
Top tips for expanding to London
- Finding the right cluster – Business clusters and support networks have developed in various sectors in the British capital – for example, in the financial districts of Canary Wharf and the City of London, for life sciences and AI around King's Cross, and the tech cluster in East London. In addition to potential customers, clients, and partners, startups can find opportunities there, such as industry-specific co-working spaces.
- Recruiting the right talent – A critical success factor for companies, whether newly founded or market leaders, is their employees. Highly qualified international talent with degrees from top universities lives and works in the global metropolis of London. Whether financial experts, software engineers, or developers, companies can find top talent in the British capital to help them achieve their corporate success.
- Network and leverage opportunities – The number of accelerators and incubators in London is immense. International and regional players offer a variety of programs that support startups from different industries and at different growth stages. Here, too, our collaboration with accelerators active in both locations is intensifying. Here East, Google Campus and Level 39 Startups gain access to important networks, advice and support from other startups and companies. Mayor's International Growth Program and the Business Growth Programs London & Partners also offers two programs with different objectives to help startups access the London ecosystem.
Whatever the final outcome of the Brexit negotiations, London will remain a cosmopolitan, global metropolis that is committed to working closely with Munich and other German business centers. And we will continue to welcome startups and international talent from Munich and around the world.
Help with founding and expansion
Anyone thinking about starting up or expanding in London is welcome to contact London & Partners As the official Trade, Invest, and Promotional Agency of the City of London, we and our partner network help companies, startups, and scale-ups enter the London market. We support them with market analyses and go-to-market strategies, offer advice on choosing the right company structure and taxes, and assist with finding office space and recruiting. Our teams of experts offer confidential, personalized, and free advice and open up paths and channels for companies into the London ecosystem.
Since 2019, London & Partners has been intensifying its relationships with local stakeholders directly from Munich, offering direct and easy-to-reach advice on-site. London & Partners also operates an office in Berlin, which serves as its German headquarters.
