Cambridge’s thriving tech ecosystem now has a combined value of $191bn (£150bn), worth more than that of Spain and Italy combined, according to new data from Dealroom.
The quaint east England city known for its university has earned its reputation as Europe’s deep tech leader after birthing innovative companies such as chip designer Arm and cybersecurity company Darktrace.
In the first half of this year, mega-rounds by start-ups, including autonomous vehicle company Wayve and quantum computing firm Quantinuum have fuelled a record-breaking funding total of $1.6bn (£1.3bn).
Gerard Grech, managing director at Founders at the University of Cambridge, said: “Cambridge is a powerhouse of innovation thanks to its combination of groundbreaking entrepreneurs, forward-thinking scientists, research institutions and investors, and this data proves that.
Cambridge now represents 18 per cent of the entire UK’s tech ecosystem, according to a new analysis by Dealroom for Founders at the University of Cambridge. By comparison, London makes up 60 per cent of the UK tech ecosystem.
However, when dividing the total enterprise value of companies founded in Cambridge by venture capital dollars invested, Cambridge has outpaced both the rest of the UK and London.
The smaller city produced 16.9 times the value for every dollar of VC investment, significantly ahead of the UK average of 5.4 times, and London’s 4.8 times.
“But we can’t rest on our laurels,” continued Grech, “we have to ensure that the next generation of venture scientists have the support, mentorship and funding to build the next Wayve or Arm and that is what we are hoping to achieve with Founders at the University of Cambridge.”
Founders at the University of Cambridge is an initiative aimed at supporting and accelerating the success of university founders. Successful companies started by Cambridge alumni include Arm by Hermann Hauser, Wayve by Alex Kendall, Slack by Stewart Butterfield, DeepMind by Demis Hassabis, and Olio by Tessa Clarke.
Yoram Wijngaarde, founder of Dealroom, said: “Cambridge is a force in the scientific and technology world and for good reason, with the university producing more valuable spinouts than any other in Europe and more successful alumni founders.
“It’s particularly strong in technologies such as quantum computing, AI drug discovery and semiconductors, as well as life sciences, which are some of the most in-demand sectors for funding and development at the moment.
“The city needs to ensure it can harness its deep tech expertise to remain top and keep producing category-defining companies in the future,” added Wijngaarde.
The report comes ahead of the first Investor Demo Day for the Start Accelerator programme by Founders at the University of Cambridge.
Eleven early-stage deep tech companies with strong ties to Cambridge completed the 12-week accelerator, which included up to £2m in investment from Cambridge Enterprise Ventures and Parkwalk Advisors.