Global technology venture capital (VC) investment into startups hit a record level of $675 billion in 2021, nearly doubling the previous all-time high of $340.6 billion in 2020, according to a latest report conducted jointly by London & Partners and dealroom.co.

The investments in 2021 were led by startups in the US at $328.8 billion, followed by those in China at $61.8 billion and India coming in third with a $44.6 billion funding into the sector. The United Kingdom ranked fourth at $39.8 billion followed by Germany at $19.9 billion, the report said.

London & Partners is the business growth and destination agency for London and dealroom.co provides market intelligence to startups, investors and companies.

Bengaluru made it to the top five leading VC investment hubs across the world, accounting for $18.6 billion of the global pie, after London that attracted $25.5 billion. The top three city hubs were the Bay Area, New York and the Greater Boston Region, all in the US, the report said.

Last year was a record year for VC investment into India and Bengaluru, with the Indian tech VC investment having grown three times between 2020 and 2021. India also jumped ranks from 4th in 2020 to 3rd globally in 2021.

2021 was also a landmark year for London’s tech sector, with a large increase in megarounds (more than $100 million rounds), an unprecedented number of exits and more new unicorns than any previous year. The UK capital’s tech firms raised an all-time high of $25.5 billion in VC funding, 2.3 times the investment levels in 2020.

In terms of unicorns (startups valued at $1 billion or more) produced in 2021, 133 new unicorns came from the Bay Area, 69 from New York, 21 from the Greater Boston Area. London produced more new unicorns than in any previous year at 20 and Bengaluru also had a record year, producing 16 new unicorn companies.

“The record venture capital investment figures for the UK and India in 2021 demonstrate that tech and innovation are thriving across both regions. With an increasing number of unicorns and exciting tech startups, cities such as London and Bengaluru are now recognised by VCs as some of the best places to find game-changing companies to invest in," said Hemin Bharucha, India country director, London & Partners.

"This is great news for tech businesses across both ecosystems and creates lots of opportunities for collaboration between London and Indian tech hubs – especially in areas of mutual strength such as fintech and edtech,” he added.