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London is the ‘founder factory of Europe’

New data reveals that London‘s tech unicorns are leading Europe in generating a substantial number of startup spinouts, indicating the capital’s major firms are establishing a foundation for long-term success in the sector.

A report from venture capital firm Accel, highlights that 27 London-based unicorns have given rise to an impressive 185 startup spinouts. This figure surpasses Berlin’s count by 20 and Paris’ count by nearly 50.

Among the London unicorns, Fintech giant Revolut takes the lead with 26 spinouts, followed by the popular takeaway app Deliveroo with 24 spinouts, and money transfer service Wise with 22 spinouts. Accel partner Harry Nelis stated, “For every big company, you can create the seeds of seven other companies. That is a flywheel that should sustain and further grow the ecosystem. We are now at a point where the European ecosystem can benefit similarly to Silicon Valley’s advantages of past decades.”

This report emerges during a challenging period for the tech sector, marked by layoffs, declining valuations, and funding difficulties for startups. Global tech companies have witnessed nearly 200,000 job cuts since the beginning of the year, according to Nelis acknowledged the current difficulties but emphasized that the tougher conditions of the past few years were the exception rather than the norm. He highlighted that the startup game involves risk and failure, and that this is an acceptable aspect of the journey.

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