According to transaction room data Cited by the Financial TimesBritish startups raised only £16.2 billion last year, far lower than the more than £65 billion raised by their Silicon Valley counterparts during the same period. In fact, the United States seems to be further ahead every year. In 2024, 57% of global venture capital is spent on U.S. startups, which is the first time in a decade that each trading room exceeds 50%.
FT report, which is part of the long-term trend that UK founders have noticed, is part of the long-term trend that UK founders have noticed, prompting many to consider considering moving abroad.
“Recognizing that most of the venture capital comes from the United States, we set up the Delaware company, a preferred and familiar structure for U.S. investors,” said Mati Staniszewski, co-founder of London-based AI company Elevenlabs, in an interview with FT.
Barney Hussey-Yo, founder and CEO of AI startup Cleo, told FT that he has spent four months a year in San Francisco and is seriously considering permanent action. “In places where there is no capital in the UK and the problem is getting worse, you can reach a certain scale,” he said. “Honestly, if it is not resolved, the UK is a bit of a [the problem]. ”
