In line with Dealroom knowledge cited by the Monetary Instances, British start-ups raised simply £16.2 billion final 12 months, far lower than the greater than £65 billion raised by their counterparts in Silicon Valley throughout the identical interval. In actual fact, the U.S. seems to be pulling additional forward every year. In 2024, 57% of world enterprise capital funding went to U.S. startups — the primary time that share has exceeded 50% in over a decade, per Dealroom.
This widening hole is a part of a years-long development that U.Okay. founders have taken word of, the FT studies, and it’s prompting many to contemplate relocating overseas.
“Recognizing that almost all enterprise funding comes from the U.S., we arrange as a Delaware company, the popular and acquainted construction for American buyers,” mentioned Mati Staniszewski, co-founder of the London-based AI firm ElevenLabs, in an interview with the FT.
Barney Hussey-Yeo, founder and CEO of the AI start-up Cleo, instructed the FT that he already spends 4 months a 12 months in San Francisco and is significantly contemplating a everlasting transfer. “You get to a sure dimension the place there isn’t a capital within the U.Okay. And the issue is getting worse,” he mentioned. “Actually, the U.Okay. is kinda f***d if it doesn’t deal with [the problem].”
