The UK is positioned second for the sixth yr in a row in an annual report which analyses start-up ecosystems around the globe.
Based on the StartupBlink World Startup Ecosystem Index, the UK is barely behind the US in a research which considers components together with density of start-ups, variety of unicorns, funding raises, variety of co-working areas, quantity of occasions for entrepreneurs and the enterprise atmosphere.
Though the UK is second globally and Europe’s prime start-up ecosystem for the sixth consecutive yr, with its whole rating nearly twice that of Sweden and greater than double that of Germany, the report stated the expansion of 13.2% places it among the many slower rising ecosystems within the prime 10 which signifies that “development seems to have levelled off”.
The UK’s start-up ecosystem is valued at $996.9 billion. It has 52 unicorns, 23 exits above $1 billion, and 70 cities within the international prime 1,000, two extra in comparison with 2025. 4 British cities are within the prime 100, with London in third, Manchester in 78th, Cambridge in eighty fifth and Oxford in 94th.
Though cities exterior London have seen development, the report stated the UK ecosystem stays extremely targeting the capital. It scored 16 instances greater than Manchester, which the report stated is “nicely above the roughly eight instances degree usually related to extra balanced methods”.
Edinburgh is within the UK’s prime 5 for the primary time since 2020, which the research stated partly displays a decline in Bristol which fell 25 locations.
Leeds has the strongest development within the UK prime 10, rising 13 locations to 189th globally with development of 38.3%.
Newcastle (14.1%), Glasgow (18.5%), and Studying (44.9%) spotlight development throughout regional cities and cities, the report stated, and Brighton has entered the UK prime 15, rising to 256th globally with development of 46.2%.
Liverpool, in 264th (43.8%, up 17 locations), can also be within the UK prime 15 for the primary time since 2020.
In 2026, the report has launched three “pillars” to analyse how an ecosystem performs throughout completely different facets of its start-up atmosphere.
The nation ranks second globally for the ecosystem stakeholder power pillar protecting start-up assist, start-up neighborhood exercise and company engagement. It’s additionally second for the ecosystem financial contribution pillar, together with funding rounds, worth of exits and expertise.
The research stated these outcomes point out “depth in ecosystem individuals and financial output”.
The UK can also be second in “5 purposeful classes”: start-up assist, funding and capital, expertise and employment, ecosystem visibility, and ecosystem attractiveness.
The UK ranks second globally in eight of the 11 industries tracked by the report: edtech, power and atmosphere, foodtech, {hardware} and IoT, healthtech, advertising and gross sales, social and leisure, and transportation.
It ranks third globally within the remaining three: ecommerce and retail, fintech, and software program and knowledge.
Summarising the UK start-up ecosystem, the StartupBlink World Startup Ecosystem Index stated:
“The UK has persistently delivered sturdy startup ecosystem outcomes,
supported by one of many world’s main enterprise environments. London stays a
international monetary centre and a magnet for fintech innovation, producing firms like
Revolut and Clever, whereas universities similar to College of Oxford and College of
Cambridge proceed to drive deep tech pipelines.
“Brexit’s long-term influence has been much less damaging than anticipated, and in some areas
has enabled extra agile policymaking. The UK stays a extremely enticing place to construct
and scale companies, however the concern is its present trajectory.
“The abolition of non-dom standing, alongside rising company taxes, is creating friction and has already triggered early indicators of expertise and capital outflows. Efforts to offset this by way of focused grants threat including complexity and distorting market dynamics slightly than strengthening the basics.
“For a rustic with such sturdy structural benefits, the precedence ought to be clear:
keep a easy, secure, and entrepreneur-friendly atmosphere. The UK’s problem
shouldn’t be functionality however guaranteeing coverage decisions don’t regularly undermine its international
competitiveness.”
The worldwide start-up ecosystem prime 10 is:
