Startups, too, have faced their share of difficulties, particularly in securing venture capital funding. In the UK, late-stage funding for startups witnessed a 75% decline in the first half of 2023 compared to the same period in 2022.

However, challenging times often spur adaptation and innovation, opening doors for new industries. For instance, artificial intelligence startups are experiencing a significant increase in capital, raising 66% more on average than in 2021. Additionally, data from LinkedIn indicates a more rapid growth in green entrepreneurship compared to entrepreneurship in general.

The seventh annual LinkedIn Top Startups list celebrates this spirit of innovation, spotlighting 20 UK companies that have demonstrated rapid growth and garnered attention. These startups have navigated recent economic and workplace challenges, distinguishing themselves to investors and top talent.

To curate this list, LinkedIn analysed data focusing on four key areas: employee growth, jobseeker interest, member engagement with the company and its employees, and the company's ability to attract talent. This year, LinkedIn has modified its criteria, reducing the age limit to five years or younger, allowing it to include more companies in the initial stages of growth.

Below are the top 20 companies on this year’s UK Top Startups list:

1. Peppy – a health app for businesses
2. V7 – creates software to help machine learning experts train their AI systems
3. Otta.com – a platform designed to help people find jobs in the technology industry
4. Ecologi – an environmental firm that provides climate action services
5. Sylvera – provides carbon data to help businesses and governments invest in real climate impact
6. GetHarley – an aesthetic dermatology company
7. Ben – provides businesses with a flexible employee benefits platform
8. THIS – makes plant-based food products
9. Wild – sells natural, refillable deodorants, shampoos, and soaps
10. ConnectFibre – provides broadband services to homes and businesses across the UK
11. BeZero Carbon – a global carbon ratings agency
12. Titanbay – a platform that allows investors to access funds across the world and build diverse portfolios
13. Robin AI – sells software to law firms that helps them create, review, and search contracts
14. Zilch – a buy-now-pay-later product
15. HelloSelf – an online therapy and coaching platform
16. Hofy – a service that businesses can use to provide employees around the world with the equipment they need to do their jobs
17. Teya – helping small businesses to take payments and reward loyal customers
18. Veed.io – an AI-powered online video editing platform
19. Wagestream – an app designed to enable frontline workers to manage their pay and overall financial wellbeing
20. Numan – a men’s health company selling erectile dysfunction and hair loss products

Methodology

LinkedIn's evaluation of startups hinges on four critical pillars: employment growth, engagement, job interest, and the ability to attract top talent. The process for measuring these pillars is precise and comprehensive.

Employment growth: this is assessed by the increase in employee numbers within the designated methodology time frame, requiring at least a 10% rise in headcount.

Engagement: this metric gauges the level of interaction with the company's LinkedIn page by non-employees, including views and follows, as well as the frequency of non-employees viewing profiles of the startup's employees.

Job interest: LinkedIn tracks the rate at which job positions, both paid and unpaid, at the company are viewed and applied for. This serves as an indicator of the startup's appeal in the job market.

Attraction of top talent: this measures the startup's success in recruiting employees from any global LinkedIn Top Company, expressed as a percentage of the startup's total workforce.

All data is normalised across eligible startups to ensure fair comparison. The methodology time frame spans from July 1, 2022, through June 30, 2023.

For a company to qualify, it must meet certain criteria: it should be fully independent, privately held, employ 50 or more full-time workers, be five years old or younger, and have its headquarters in the country of the respective list. Exclusions apply to staffing firms, think tanks, venture capital and law firms, management and IT consulting firms, nonprofits and philanthropy, accelerators, and government-owned entities. Furthermore, startups that have announced layoffs of 10% or more of their workforce, as corroborated by corporate announcements or reliable public sources during the specified time frame, are deemed ineligible. These decisions are made by the LinkedIn News team, drawing on company statements and credible news reports.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.