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The unicorn phenomenon is not just a US-centric one. Across the world, there are dozens of companies that have achieved billion-dollar valuations. And Europe is no exception. In fact, according to MoneyTransfers.com, the UK is home to the highest number of unicorn start-ups in Europe.
MoneyTransfers.com has released a presentation showing that the UK has 47 unicorn start-ups. Germany takes the second spot with 30 firms while France takes the third slot with 28. Sweden (8) and the Netherlands (7) follow a distant fourth and fifth, respectively.
So What’s Behind the UK’s Prominence in the Unicorn Scene?
According to MoneyTransfers CEO, the UK’s prominence here is due to several factors. He explained:
One reason is that the UK has a very strong start-up sector. This is thanks to London’s status as a global financial center, as well as its strong tech sector. Different businesses have been able to tap into these advantages leading to some major successes.
MoneyTransfers CEO Jonathan Merry
He added that the UK has a robust entrepreneurial culture. The country has a well-developed venture capital market, meaning ample start-up funding is available. Consequently, firms can achieve high valuations relatively quickly.
These factors have helped create a thriving unicorn scene in the UK. And this looks likely to continue in the years ahead. Furthermore, the UK’s strong economy and favorable business environment make it an attractive place for start-ups to set up shop.
The UK's Strongest Regions
Data from technation shows that across the UK, certain regions creating more unicorns than others. With London, the South East and North West of England all showing promise for the future.
Region | Unicorns | Future Unicorns |
|---|---|---|
London | 55 | 82 |
South East | 7 | 11 |
East of England | 5 | 7 |
North West | 5 | 6 |
South West | 2 | 3 |
West Midlands | 2 | 2 |
Yorkshire | 2 | 2 |
Wales | 1 | 1 |
North East | 0 | 1 |
East Midlands | 1 | 0 |
UK and Germany Dominate Europe’s Top 10 Unicorns
MoneyTransfers’ presentation showed that the UK and Germany are clear front runners regarding the top 10 unicorns in Europe. They dominate the list with six and three unicorns, respectively. Additionally, Checkout.com, a UK Fintech firm, tops the list with a roughly $40 billion valuation.
So, what’s behind this domination? Merry explains that there are a few factors at work. Firstly, both countries have large economies and strong tech sectors. They also have a history of successful start-ups, with a lot of experience and funding available to help new companies get off the ground.
Another important factor is access to capital. Both the UK and Germany have a lot of venture capitalists who are willing to invest in high-growth startups. This enables companies to grow quickly and reach a larger scale.
Finally, both countries have a robust infrastructure for start-ups. This includes good laws and regulations and a supportive ecosystem of incubators, accelerators, and mentors. All of this helps entrepreneurs to succeed and grow their businesses.
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