It should be based on the number of successes relative to the amount raised or ROI and that picture is quite different. In that sense London is way behind SV.
Eh, I know quite a few. LegalTech, hardware, obviously fintech, quite a bit of AI. But I work at a London startup so my social circle might be different to yours.
Having a London domicile often leads to an overstating in venture capital raised for the UK ecosystem.
For example, I've funded Polish and Indian startups that chose the UK as their legal domicile because we couldn't be bothered to hire a legal team to draft a contract to Polish or Indian specifications.
Builder.ai [0] is a great example of that - it was an Indian startup that was domiciled in London to simplify raising capital from Gulf investors.
Does this also impact US metrics for capital raised? My understanding is that the Delaware C-Corp is still the startup standard for founders from anywhere in the world to raise global capital, which I imagine skews where the capital actually ends up flowing if they are actually building a company in a foreign location and just using the Delaware entity as a holding co.
Startups like Builder AI use London because a.) they want to raise money from filthy rich Arab investors and b.) those guys are not known for doing much due diligence. They go more by vibes and hype and who's on the existing cap table. Also c.) they are very comfortable with London because it was so much easier back in the day to launder or siphon away funds from their home countries. London is an extremely popular destination for Gulf Arabs.
You'll get a lot of shady startups of that kind in London for this reason.
That would be pretty funny to say. Where are America's startups founded? Principally the San Francisco Bay Area. What about the Rest of the World? Oh, principally the San Francisco Bay Area.
It reminds me of the funny fact that for years I worked at a building in Bush St. that was nice but not particularly remarkable only to find out that that's where Saudi Aramco was originally headquartered when some Twitter post counted them for the Bay Area for their "Where are the top market capped public companies from?" segment.
Could you give only a few examples from those PLENTY of other places that are better? Like the first 10 that come to your mind, you made me very curious!
It's not based on marketing, it appears to be based on metrics like amount of venture capital raised.
It should be based on the number of successes relative to the amount raised or ROI and that picture is quite different. In that sense London is way behind SV.
The article doesn't dispute that London is way behind SV. What it's saying is that for non-US funding, London dominates.
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Given that London has little else going for it other than a financial industry it's not surprising money is raised and companies are registered there.
That said I don't know anyone doing a startup in London. But I know dozens in Berlin without even thinking about it.
Eh, I know quite a few. LegalTech, hardware, obviously fintech, quite a bit of AI. But I work at a London startup so my social circle might be different to yours.
Having a London domicile often leads to an overstating in venture capital raised for the UK ecosystem.
For example, I've funded Polish and Indian startups that chose the UK as their legal domicile because we couldn't be bothered to hire a legal team to draft a contract to Polish or Indian specifications.
Builder.ai [0] is a great example of that - it was an Indian startup that was domiciled in London to simplify raising capital from Gulf investors.
[0] - https://www.ft.com/content/926f4969-fda7-4e78-b106-4888c8704...
Does this also impact US metrics for capital raised? My understanding is that the Delaware C-Corp is still the startup standard for founders from anywhere in the world to raise global capital, which I imagine skews where the capital actually ends up flowing if they are actually building a company in a foreign location and just using the Delaware entity as a holding co.
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Startups like Builder AI use London because a.) they want to raise money from filthy rich Arab investors and b.) those guys are not known for doing much due diligence. They go more by vibes and hype and who's on the existing cap table. Also c.) they are very comfortable with London because it was so much easier back in the day to launder or siphon away funds from their home countries. London is an extremely popular destination for Gulf Arabs.
You'll get a lot of shady startups of that kind in London for this reason.
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For you specifically that may be true, but the numbers say London dominates by far.
Sand Hill road
That would be pretty funny to say. Where are America's startups founded? Principally the San Francisco Bay Area. What about the Rest of the World? Oh, principally the San Francisco Bay Area.
It reminds me of the funny fact that for years I worked at a building in Bush St. that was nice but not particularly remarkable only to find out that that's where Saudi Aramco was originally headquartered when some Twitter post counted them for the Bay Area for their "Where are the top market capped public companies from?" segment.
Could you give only a few examples from those PLENTY of other places that are better? Like the first 10 that come to your mind, you made me very curious!
Not the person you asked but I am thinking of France and Germany. France has Station F (https://en.wikipedia.org/wiki/Station_F).
There are also Portugal, Spain and Romania that are rising contenders. I am also very dubious of UK being "world first"
I'm waiting for the yearly "Waterloo is the Silicon Valley of Canada" article that always fails to deliver its promise.
I grew up in Waterloo but it's just not it lol.