London-based tech small and medium-sized enterprises (SMEs) have secured £7.2 billion in private investment since 2019, according to a report released by government agency the City of London Corporation.

The “Tech SME Landscape” report highlighted the strong performance of the city’s tech hub, where fintech, business and enterprise solutions and AI companies lead the sector. The city houses more than a third of the UK’s tech SMEs and nearly 75 per cent of its ‘tech unicorns’, or start-ups valued at over £780 million.

Investment in tech SMEs hit a record high in 2024, the report stated. In the first three quarters of the year, fintech companies raised £810 million, more than double the £354 million secured in 2023. Meanwhile, data and AI companies raised £383 million and remain on track to eclipse the £514 million raised in 2022.

The latest results follow a two-year slump in the sector and a bullish 2024 suggests signs of a tentative rebound.

The results come after the City of London Corporation launched its SME Strategy last year, which highlighted plans to improve access to support and visibility for small businesses, bolster underrepresented groups and nurture the city’s networks. The corporation also disclosed plans to launch a centralised online platform this month for SMEs to access funding and resources, dubbed the SME Gateway.

Chris Hayward, policy chairman of the City of London Corporation, stated that London “provides unparalleled advantages in terms of networking, talent acquisition, and funding”, underscoring the “need to do all we can” to nurture the tech sector.