The UK is positioned second in an annual report which analyses start-up ecosystems around the world for the sixth year in a row.
According to the StartupBlink Global Startup Ecosytem Index, the UK is second only to the US when it comes to factors including start-ups density, number of unicorns, funding raises and business environment.
Although the UK is second globally and Europe’s top start-up ecosystem for the sixth consecutive year, with its total score almost twice that of Sweden and more than double that of Germany, the report said the growth of 13.2% puts it among the slower growing ecosystems in the top 10 which indicates that “growth appears to have leveled 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 in the global top 1,000, two more compared to 2025. Four British cities are in the top 100, with London in third, Manchester in 78th, Cambridge in 85th and Oxford in 94th.
Edinburgh has entered the UK’s top five for the first time since 2020, which the study said partly reflecting a decline in Bristol which fell 25 places.
Leeds has the strongest growth among the UK top 10, rising 13 places to 189th globally with growth of 38.3%.
Newcastle (14.1%), Glasgow (18.5%), and Reading (44.9%, up 15 places to 216th) point to growth across regional cities, the report said, and Brighton has entered the UK top 15, rising to 256th globally with growth of 46.2%.
Liverpool, in 264th (up 17 places, 43.8%), has also entered the UK top 15 for the first time since 2020.
The country ranks 2nd globally in both ecosystem stakeholder strength pillar and ecosystem economic contribution pillar, which the study said indicates “depth in ecosystem participants and economic output.
The UK is also start-up support, funding and capital, talent and employment, ecosystem visibility, and ecosystem attractiveness.
The UK ranks second globally in eight of the 11 main industries tracked by the report: edtech, energy and environment, foodtech, hardware and IoT, healthtech, marketing and sales, social and leisure, and transportation.
It ranks third globally in the remaining three: ecommerce and retail, fintech, an software and data.
Summarising the UK start-up ecosystem, the report said:
“The United Kingdom has consistently delivered strong startup ecosystem outcomes,
supported by one of the world’s leading business environments. London remains a
global financial centre and a magnet for fintech innovation, producing companies like
Revolut and Wise, while universities such as University of Oxford and University of
Cambridge continue to drive deep tech pipelines.
“Brexit’s long-term impact has been less damaging than expected, and in some areas
has enabled more agile policymaking. The UK remains a highly attractive place to build
and scale businesses, but the concern is its current trajectory.
“The abolition of non-dom status, alongside rising corporate taxes, is creating friction and has already triggered early signs of talent and capital outflows. Efforts to offset this through targeted grants risk adding complexity and distorting market dynamics rather than strengthening the
fundamentals.
“For a country with such strong structural advantages, the priority should be clear:
maintain a simple, stable, and entrepreneur-friendly environment. The UK’s challenge
is not capability but ensuring policy choices do not gradually undermine its global
competitiveness.”
The global start-up ecosystem top 10 is:
