According to data from Dealroom, as reported by the Financial Times, British start-ups raised only £16.2 billion last year, compared to the over £65 billion raised by their Silicon Valley counterparts during the same period. The United States appears to be further widening its lead each year. In 2024, 57% of global venture capital funding was directed to U.S. startups, marking the first time in over a decade that this share surpassed 50%.
This growing disparity has been a long-term trend that has attracted the attention of U.K. founders, according to the Financial Times, prompting many to contemplate moving their operations abroad.
Mati Staniszewski, co-founder of the London-based AI company ElevenLabs, stated in an interview with the Financial Times that recognizing the majority of venture funding originates from the U.S., they established their company as a Delaware corporation, which is the preferred structure for American investors.
Barney Hussey-Yeo, the founder and CEO of the AI start-up Cleo, mentioned to the Financial Times that he spends four months each year in San Francisco and is considering a permanent relocation. He explained that beyond a certain size, there is a lack of capital in the U.K., and he believes the issue is worsening. He expressed concern that the U.K. faces significant challenges if it does not address this problem.
