- New NatWest research highlights London and the South East as the UK's largest innovation economy, home to almost 10,000 innovative businesses.
- Grant-backed firms across the two regions have attracted more than £40.5bn in follow-on investment
- NatWest is helping founders turn ideas into growth through its Growing Together ambition and Accelerator Hubs in London and Brighton.
London and the South East continue to cement their position at the heart of the UK's innovation economy, according to new research from NatWest.
The report, From Innovation to Impact, found the regions are home to 9,682 innovative businesses, 4,686 recipients of public innovation grants and 1,041 university spinouts, making them the UK's largest and most concentrated innovation ecosystem. Together, they account for almost 40% of the innovative businesses captured within the analysis.
The research shows businesses across London and the South East are already translating innovation into commercial success. Grant-backed firms have secured more than £40.5 billion in follow-on investment, while 1,392 businesses have raised additional equity funding and 483 businesses have successfully exited. London also boasts the highest follow-on investment rate of any major UK region.
While the regions already lead the country on many measures of innovation success, NatWest identified 1,685 innovative businesses that are continuing to develop new products and technologies but have yet to reach commercial scale. Supporting more of these firms to grow could help unlock further investment, jobs and economic growth.
One founder helping to demonstrate the strength of the South East's innovation ecosystem is Oxford-based healthtech business Peripear. Founded to improve outcomes for women through evidence-based maternity innovation, the business recently secured a prestigious Women in Innovation Award, received its third Innovate UK grant in six months and is currently closing an oversubscribed pre-seed funding round. Co-founder Nina van Schaick also won
NatWest's Oxford Accelerator Pitch Competition, securing £70,000 in funding to help grow the business.
Catherine van Weenen, Regional Managing Director, Commercial Mid-Market, London & South East, NatWest, said:
"Spend any time with founders across London and the South East and you quickly get a sense of the energy, ambition and creativity that's driving this region forward. There are thousands of businesses developing new technologies, creating jobs and finding new ways to solve problems.
"Our research shows just how important the region has become to the UK's innovation economy. Nearly 10,000 innovative businesses are based here and together they've attracted more than £40 billion in investment. That's an incredible platform for future growth.
"We're passionate about helping those businesses succeed. Through our Growing Together ambition and our Accelerator Hubs in London and Brighton, we're supporting founders with the funding, connections and expertise they need to scale, so more businesses can grow, stay local and contribute to the success of our communities and regional economy."
NatWest supports entrepreneurs at every stage of their journey through its Accelerator community, Venture Banking proposition and partnerships with innovation ecosystems across the UK. Its Accelerator Hubs in London and Brighton continue to help founders develop their ideas, grow their businesses and connect with the networks needed to scale.
The findings build on the latest NatWest and Beauhurst Startup Index, which showed almost 180,000 new businesses were launched across London and the South East during the first half of 2026, including 136,000 in London alone, reinforcing the regions' status as the UK's leading home for entrepreneurs and high-growth businesses.
London and the South East by Numbers – NatWest research showed London and the South East are home to:
- 1,791 innovative businesses
- 9,682 innovative businesses
- 4,686 public innovation grant recipients
- 1,041 university spinouts
- £40.5bn+ in follow-on equity investment attracted
- 1,392 businesses have secured follow-on equity investment
- 483 businesses have achieved an exit
- 1,685 businesses sit within the untapped innovation cohort
- 36.0% of grant-backed firms are in the untapped innovation cohort
- London and the South East account for almost 40% of the UK's innovative businesses captured within the dataset
