,[Camden] The world has a much more diverse, multicultural environment than either of the larger tech regions, the Bay Area or Beijing. It is one of the best places in the world to start a business.
Emden’s emerging technology and fintech cluster has been dubbed the “new Palo Alto” when the borough was named London’s most entrepreneurial part of the city, with more new start-ups per capita in the previous year than any other region. was home.
Research exclusive to the Evening Standard found that a total of 1055 new small businesses were created in Camden between 2020 and 2021 – more businesses per capita than anywhere else in London. The level of new business creation is in stark contrast to the national decline in SME start-ups across the UK.
According to the Federation for Small Business, the number of small businesses in the UK fell by 369,000 between 2020 and 2021 as firms shut down by Covid.
But Camden saw a 3.3% increase in new companies in the borough between 2020 and 2021, according to data analyzed by specialist SME insurer Superscript. The start-ups have joined the neighborhood tech giants, including newly-listed car giant Kazoo, Google in King’s Cross and Camden’s legendary fashion powerhouse ASOS.
The North-West borough has become a technical cluster, with recent government employment figures showing technical roles make up more than 11% of the available vacancies. Tech firms founded in Camden during 2020 and 2021 include tenancy deposit app Fronted & Causal, which earlier this year raised $4.2 million for a data-focused rival of Microsoft’s Excel.
Former Tech Nation president Eileen Burbidge identified Camden’s potential in 2009, basing her venture capital firm Passion Capital (one of the first backers of online bank Monzo) in Clerkenwell, Camden.
“The environment is far more relaxed than in the city — more trainers and casual dress than business shirts — and more dynamic, diverse, and inclusive than in other parts of the capital,” she says. “There is an unbeatable buzz in the field and the energy is contagious.
“Even when we first founded what would become Passion Capital in 2009, we knew we wanted to be based in Clerkenwell amongst creative and developer minds. For more than 10 years and we have been at LocalGlobe, Balderton and are associated with investment firms like GV [Google Ventures] In area.”
Second in the race for the title of London’s most entrepreneurial city was Hackney, where 935 new firms were established. Unicorns established in the area include Wise (formerly TransferWise) in Shoreditch’s Tea Building and Gocardless in Goswell Road.
Hackney business founders made 4.2% more firms in the 12 months hit by the pandemic than in the previous year.
Barnett ranks third in North London with 1230 new companies founded.
Superscript compared the number of small businesses with 49 employees between 2020 and 2021 with the government’s latest population data to generate a ‘business per capita’ score for each location. The higher the score, the higher the density of small businesses in the area. The change from year to year reflects the number of new businesses created.
Camden has 0.38% of small businesses per capita, with Hackney, number two in the ranking of the capital’s hottest start-ups, far behind with 0.33%. Barnett has 0.31%.
“With the spike we saw in young London companies looking for flexible and bespoke insurance cover on lockdown, and an entrepreneurial spirit growing in the capital, we wanted to identify the boroughs of London that had the most to small businesses. Have seen more growth,” said Superscript co-founder Ben Rose.
Serial entrepreneur Saul Klein, founder of the LocalGlobe venture capital firm, calls the Camden-Kings cross-somers town area where his firm is based “the new Palo Alto”.
They say: “In Camden, there is a research and talent base with UCL, the University of the Arts, LSE, and the London Business School. We have one of the world’s top financing systems, whether you need early stage capital, growth stage capital, or Need access to public markets. There are millions of consumers. We can walk to Whitehall in 10 minutes, or go by train to Brussels in 90 minutes, with regulators willing to work with start-ups.
,[Camden] The world has a much more diverse, multicultural environment than either of the larger tech regions, the Bay Area or Beijing. It is one of the best places in the world to start a business.”