San Francisco may have its Silicon Valley for hi-tech companies but now London has its own, very British, internet hot spot - silicon roundabout.

The area surrounding Old Street roundabout boasts some of London's most exciting internet companies.

Internet radio station last.fm, sold to CBS last year for £140 million, became an international name from their office just off the roundabout - and more companies hoping to follow in their footsteps are arriving by the day.

Matt Biddulph, of travel networking website dopplr.com, has set up a new site to track silicon roundabout businesses.

"In San Francisco there is an amazing social scene around the internet companies and with silicon roundabout we are really starting to see the same thing happen here," he said.

"There's a buzz around the area and we are all incredibly close to each other. There are now investors ready to fund internet companies again for the first time since the dotcom crash and it seems Old Street is really becoming a hub for these companies.

"We're also seeing a lot of freelance workers moving into office space in the area, as generally most of their clients are just round the corner. It's become a really exciting place to be and has a definite San Francisco feel to it - a lot of people work from the coffee shops."

Mr Biddulph's website, bit.ly/siliconroundabout, which features a map showing every known internet company in the area, has attracted thousands of hits.

He has also launched a social networking site for local workers at siliconroundabout.com.

He said: "We all have a lot in common, so there is a thriving social scene here. But I think we've all been surprised at how quickly the idea of the silicon roundabout has spread. It started off as a bit of an in joke but it's now beginning to spread. I think the description silicon roundabout is also very British."

Matt Webb, 30, of electronic design consultancy Schulze and Webb, moved into a warehouse building just off Old Street three days ago. "The networking possibilities are amazing," he said. "On our first day here we were having lunch in the park and we came across the guys from last.fm, who we are really keen to work with.

"It's really about being around likeminded people. We all have the same challenges and do broadly similar jobs, so it's great that we are all so close to each other. Previously we were in Kentish Townand we always seemed to be having to come down here for meetings, so we just decided to make the move." Alexandra Deschamps-Sonsino, of interactive consultancy tinker.it, said the area had developed a sense of community, adding: "We are based in a building with a courtyard in the middle and everyone around is doing really exciting things. Generally we all end up having coffee together and comparing what we are working on. I think a lot of deals have been done that way."

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