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UK Founders Grow Frustrated Over Dearth of Funding: ‘The Problem Is Getting Worse’
According to recent reports, British startups have raised a staggering £16.2 billion in funding last year, a figure far short of the over £65 billion raised by their Silicon Valley counterparts during the same period. Furthermore, data suggests that the US is continuing to pull ahead, with 57% of global venture capital funding now going to American startups – a milestone not reached in over a decade.
This widening gap has become a pressing concern for UK founders, who are beginning to take note of this years-long trend and considering relocating abroad. “Recognizing that most venture funding comes from the US, we set up as a Delaware corporation, the preferred and familiar structure for American investors,” remarks Mati Staniszewski, co-founder of London-based AI company ElevenLabs.
Barney Hussey-Yeo, founder and CEO of AI start-up Cleo, has already taken steps to adapt to this reality. He spends four months of every year in San Francisco and is seriously considering a permanent move. “You get to a certain size where there’s no capital available in the UK And the problem is getting worse,” he emphasizes. “Honestly, the U.K. is kinda f***d if it doesn’t address [the problem].”
Source: https://techcrunch.com/2025/04/13/uk-founders-grow-frustrated-over-dearth-of-funding-the-problem-is-getting-worse/
