Cambridge leads globally in transition from Seed fundraising to Series A

According to new analysis by Dealroom for Founders at the University of Cambridge, Cambridge startups and scaleups raised an impressive $2.3 billion in 2024, the second-best year on record and almost double 2023’s $1.2 billion. 

The research finds that Cambridge’s ambitious founders and venture scientists have reversed the wider declines in funding across Europe. 

Leading cities have seen funding fall, such as:

• Stockholm (down -57 per cent to $2 billion),
• London (-12 per cent to $11.3 billion) and
• Berlin (-7.25 per cent to $2.7 million)..

However, overall funding in deep tech hubs, including Cambridge, is on the up, along with:

• Oxford (up +1 per cent to $706 million),
• Zurich (+5.1 per cent to $990 million) and
• Munich (+21 per cent to $2.9 billion). 

This has driven the value of the Cambridge tech ecosystem to $222 billion, up 16 per cent compared to last year, making it the second most-valuable tech ecosystem in the country.

Cambridge is now top globally for the number of Seed companies that mature to Series A, ahead of the Bay Area, Oxford, and London. 

On average, 41 per cent of Cambridge tech companies reach Series A, compared to 40 per cent of startups for the Bay Area and 35 per cent and 33 per cent respectively for Oxford and London. 

The ROI for has increased too: Cambridge startups produce $17.7 in value for every dollar for VC invested, up from $16.9 last year.

Cambridge tech companies have already raised $420 million in VC funding so far this year. 

University spinouts such as Nyobolt ($30 million) and Cambridge GaN Devices ($32 million) raised breakout rounds to fund their ambitious goals. 

Further, Cambridge also remains one of the most important ecosystems for deep tech, ranking third by deep tech spinout value, behind Oxford and ETH Zurich. 

Founders at the University of Cambridge supports and accelerates University founders to achieve greater impact, by ensuring deep tech companies with a connection to the University have the guidance, support, mentoring and funding to have a global impact.

Last year’s inaugural programme saw 11 companies participate, including lithium-sulfur battery startup Molyon, which raised $4.6 million 

According to Gerard Grech CBE, Managing Director of Founders at the University of Cambridge:

 "To get more venture scientists to breakout stage, we need to back them with the right support — from mentoring and business development to funding.

We’re making sure they have what they need to build the deep tech companies that will shape our future."

Yoram Wijngaarde, founder of Dealroom, said: 

“Cambridge continues to be a shining example in the European ecosystem, at the heart of New Palo Alto with its deep scientific and technological research heritage.

Its success in producing global tech companies like Arm, Wayve and Quantinuum is inspiring the new cohort of founders.”

Professor Dame Clare Grey, Co-Founder and Chief Scientist, Nyobolt; Royal Society Professor of Chemistry at Cambridge University, said: 

“'Cambridge provides unparalleled foundations for deep tech ventures with its unique international networks and expertise.

We must maintain focus on our ultimate mission: transforming breakthrough science into scalable solutions that tackle universal challenges, particularly those that ensure a more sustainable future for all.”

Image: Freepik.