- New analysis from IMS Digital Ventures reveals that the UK has created almost three-times as many billion-dollar companies as the US per dollar in seed and early-stage VC investment in the last decade.
- From 2014–2024, UK start-ups outperformed the US, Canada, and Germany in converting early-stage investment into billion-dollar valuations, with 57 unicorns from $18.5bn invested.
- The US creates just 1.22 unicorns per $1bn in seed and early-stage funding despite a massive $625bn in investment since 2014.
The UK has created almost three-times more ‘unicorns’ for every dollar in seed and early-stage VC investment than the US since 2014, according to analysis from venture-building firm IMS Digital Ventures.
Using OECD and CB Insights data, IMS Digital Ventures’ analysis ranked European and North American countries according to their levels of seed and early-stage VC investment between 2014–24 and the number of companies that have achieved ‘unicorn’ status — privately held companies valued at $1bn or more — since 2014.
UK second-best destination for early investment in start-ups
According to IMS Digital Ventures’ International VC Investment Index, the UK is the second-most attractive major economy in Europe and North America for seed and early-stage VC investors, proving to be highly efficient at converting this investment into companies with unicorn valuations.
The data shows that 57 companies founded in the UK have reached unicorn status since 2014 from a total of $18.5bn VC deployed between 2014 and 2024 — a ratio of 3.08 unicorns per $1bn in seed and early-stage VC. This was the second-highest ratio of any major European or North American economy that has received at least $5bn in seed and early-stage VC investment since 2014, establishing the UK as a premier destination for VC investors seeking returns.
US home to the most unicorns, while European markets show strong VC efficiency
IMS’s research shows that the US has generated more unicorns than any of its international competitors since 2014, with 764 companies achieving unicorn valuations in the last decade. However, the analysis also finds that the US has seen a total of $625bn in seed and early-stage VC investment from 2014 to 2024 — a ratio of 1.22 unicorns per $1bn .
Germany follows with 32 companies reaching unicorn status from $14bn in seed and early-stage VC, a ratio of 2.3. The Netherlands has seen 10 firms reach billion-dollar valuations since 2014, with a total of $5.1bn in seed and early-stage VC investments between 2014 and 2024.
Finance and insurance at the heart of UK innovation
Almost half of the UK’s unicorns since 2014 have been in the fintech or insurance sectors, highlighting London’s continued status as a global centre for finance and innovation. Fintech start-ups, neo-banks, insurance companies, and insurtech firms represented 27 of the UK’s 57 companies (47%) that have reached unicorn status since 2014.
This includes the neobank Monzo, which raised around $50m in series A to C funding between 2015 and 2017 (link) and is now valued at $5.9bn (link), and Marshmallow, an insurtech firm that reached a $2bn valuation in 2025 (link) from $190m in funding rounds from series A to C (link). Other success stories include Wise, a payments firm that raised $90m through funding rounds up to series C, and now has a market capitalisation of over $14bn after going public in 2021 (link) and Revolut, which has recently offered shares at a $75bn valuation.
Whilst the UK’s fintech sector continues to thrive, the research also finds that 6 UK start-ups in the cloud, cybersecurity, and artificial intelligence (AI) sectors have reached billion-dollar valuations since 2014. This includes cybersecurity and AI firm Darktrace, which achieved unicorn status before its 2020 IPO and was taken private at a valuation of $5.3bn in 2024 (link), and datacentre operator Global Switch, which is reportedly exploring a sale at a rumoured valuation of $6–7bn (link).
UK seed and early-stage investment grows five-fold over decade
VC investors are recognising the returns available in the UK, and have significantly increased the levels of capital available to start-ups over the last decade. Seed VC investment in the UK has risen almost tenfold over the last decade, rising from just $50m in 2014 to $538m in 2024, while seed and early-stage VC investment has grown fivefold from $576m to $3bn over the same period.
This growth reflects the UK’s reputation as one of the world’s premier destinations for founders to start and grow businesses. The country is home to universities that are consistently ranked among the world’s top 10, while its strong legal framework and London’s status as a major financial centre provide start-ups with the stability and access to capital they need to thrive.
Anastasios Papadopoulos, Founder and CEO at IMS Digital Ventures, said: “Our International VC Investment Index shows that the UK has been a breeding ground for some of the world’s most innovative and exciting start-ups in the last decade. From leading universities producing world-class talent to London’s status as a global financial centre, the UK has all the right ingredients to thrive as a hub for the companies that can shape the industries of the future in tech, finance, pharmaceuticals, and professional services.
“That is why we continue to see investors, family offices, and high-net-worth individuals partnering with us to provide the capital required to build the next British unicorn, because they recognise the strong value and returns the UK has to offer.
“While we’ve seen tremendous success in financial innovation, there’s a clear opportunity to support more start-ups in high-growth areas such as artificial intelligence, cybersecurity, and biotech. With the right regulatory environment and continued support for emerging technologies, the UK is well-positioned to build on its strong foundation and create the next generation of British tech unicorns.”
