London is one of the world’s most influential and integral centres for life sciences development. According to Grow London, it is home to more than 2,400 life science companies, around 90 new spinouts are created each year and the sector has seen an average annual turnover increase of 5.8% in the city over the past five years.

With £2.1 billion raised by AI and data-led life sciences businesses and over 75,000 science and medicine students enrolled annually, London continues to attract significant investment and world-class talent. In this article, we shed light on why so many early-stage companies are choosing London as their home and explore how specialised spaces like Victoria House are helping life science startups scale at pace.

Location: A Global Centre for Research and Discovery

In MedCity’s 2024 Global Cities Comparison Report, London ranks first globally for its healthcare research environment. The city’s strengths include a high density of clinics, rapid enrolment for Phase I clinical trials and efficient regulation. London also hosts the second-highest number of clinical trials in Europe.

Several of the world’s top academic institutions are based in the capital, including Imperial College London and UCL, ranked 2^nd and 9^th globally, plus the Francis Crick Institute, Europe’s largest biomedical research facility, and the Institute of Cancer Research are also located here. This concentration of research activity provides a rich foundation for startups, enabling early access to expertise, partnerships and talent.

Looking further afield, London is also part of the UK’s “Golden Triangle”, alongside Oxford and Cambridge. The three cities are well-linked by public transport and well-known for producing high volumes of scientific research, spinouts and investment opportunities. For startups, this opens the door to an even more expansive, collaborative ecosystem.

Victoria House, located in Bloomsbury, offers direct access to this huge network of opportunities. Neighbours include UCL, Great Ormond Street Hospital and the Wellcome Trust, and our central location supports collaboration with academic, clinical and funding partners, as well as fast links across the capital and beyond.

Investment and Infrastructure: A City Designed for Growth

London continues to attract significant capital, particularly in high-growth areas such as AI-driven drug discovery, diagnostics and digital health. AI-focused life science companies in London alone have raised over £2.1 billion – more than anywhere else globally.

The city’s digital infrastructure and access to real-world data make it especially attractive to early-stage ventures. NHS datasets, covering cradle-to-grave patient information for over 65 million people, are a powerful resource for developing and validating new technologies. In parallel, regulation is evolving to support innovation. The Medicines and Healthcare Products Regulatory Agency (MHRA) has launched both the International Recognition Procedure and the AI Airlock, offering faster routes to approval for new products.

Looking to the near future, the Chancellor’s Spending Review confirms that science and technology will play a central role in the UK’s economic agenda, with £86 billion earmarked over the next four years. We’re particularly encouraged by targeted commitments, including:

• £520 million for life sciences manufacturing
• A new £410 million Local Innovation Partnerships Fund
• Support for clinical research through UKRI and Horizon Europe
• Further investment in AI and data infrastructure

We know from our own experience that long-term ecosystems are built by recognising and supporting local strengths, not just through centralised investment, so the emphasis on regional growth and high-impact areas like drug discovery is a welcome shift.

Turning the Tables on Talent and Diversity

While London offers significant advantages, the city has also faced some recent, well documented challenges, particularly in its talent pipeline. Brexit and international competition have led to skills shortages in recent years, which in turn created hiring pressures for life science companies, particularly in specialist roles.

However, the city is proactively responding to these issues. Imperial College London recently hosted a roundtable event with the Mayor of London as part of the new Inclusive Talent Strategy – a key action of the London Growth Plan – aimed at aligning skills provision with industry demand. Deputy Mayor for Business and Growth, Howard Dawber, said at the event: “We know that growth depends on people, which is why we’re developing a new Inclusive Talent Strategy in partnership with London Councils and BusinessLDN. We want to build an employer-led skills and careers offer that aligns education and training with industry demand, helps employers connect with talented Londoners, and supports more diverse and inclusive hiring across the capital.”

London’s population itself is another strategic advantage. The latest statistics from Trust for London show that 46% of residents identify as Black, Asian, mixed race or another ethnic background. This makes the capital one of the most representative cities for conducting clinical research, with direct benefits for trial diversity and product relevance across populations.

National initiatives are also helping bridge the talent gap. The Global Talent Fund, launched by the Department for Science, Innovation and Technology (DSIT), is supporting 12 selected UK institutions, including Imperial College London, in recruiting international research teams and strengthening their global competitiveness.

Victoria House: Lab Space for Startups in London

Victoria House is playing an essential role in supporting London’s life sciences ecosystem. The distinctive, grade II listed building offers 300,000 sq ft of modern workspace, laboratories and amenities, designed for startups, scale-ups and multinational life science companies.

Located in the heart of the Knowledge Quarter, Victoria House provides advanced infrastructure alongside access to academic institutions, clinical research centres and capital networks. The environment has been designed to help life science organisations of all sizes to grow, with flexibility to support changing needs and space to expand.

Indeed, the newly launched incubator space on the seventh floor of Victoria House is fully fitted with shared instrumentation, a cell culture suite, cold storage, and high-spec lab equipment. These premium facilities enable early-stage companies to conduct advanced research without the upfront costs of setting up a lab from scratch.

Dr Jess Corry, CEO and Founder of Xterna and one of the first residents of the incubator labs, shares her experience. Read the full interview: Victoria House London Launches Incubator Labs, with Xterna Among the First Residents.