We recently discovered the news that investors are losing faith in the United States, and as a result, are moving to the UK. This creates a lot of opportunities for the UK, especially for UK startups.
With Bank of America’s latest survey having shown that fund managers dumped United States shares after the White House revived its tariff plan. They went from 17% to 23% below, making this the lowest on record.
This sudden change then, in turn, brings new cash toward London quoted firms. Cheaper valuations and a softer pound make the main board look like a worthy investment choice from trade crossfire. Venture partners say the same thinking colours early‑stage deals, as overseas funds hunt sterling assets that can grow without heavy reliance on United States demand. Many funds also like the City’s legal talent and long record of exits.
Founders report term sheets arriving quicker than at any time since late 2021. Pension funds from Canada and Singapore ask to join seed rounds that once leaned on domestic backers. Larger cheques let teams hire engineers sooner and spend longer refining products before the next round. Those cheques often arrive with lighter governance terms than the boom year of 2021.
Manchester, Bristol and Cardiff hubs also stand to benefit. Managers who once flew straight to San Francisco now split trips between those cities and Shoreditch, eager to spot talent priced at half New York levels. Incubators say interest cuts closing a round from three months to five weeks.
Who Set Up Shop In Britain Last Year?
One early arrival, even before this recent move, was FTV Capital. The growth‑equity firm opened a Mayfair base in June 2024 and hired partner Richard Earnshaw to guide European deals. The office builds on two decades of backing payments and enterprise‑software firms such as Liberis and Paddle.
Having that team on the ground changed founder expectations. FTV scouts talent across the continent but channels many first cheques through UK vehicles, adding depth to local cap tables. Rival American funds see the appeal and quietly search for desks in the capital, according to recruiters who specialise in venture hiring. Their presence boosts confidence among sovereign funds that prefer a local reference marker before wiring cash overseas.
The upshot for startups is greater choice. A founder seeking two million pounds in Leeds this spring secured three competing bids in a single week, one from a New York family office that had never invested in Britain before. As long as tariff noise keeps Wall Street nervous, founders across the country may keep that edge.
What Are Experts Saying?
Here’s what experts think startups should do to leverage this move in the UK…
Our Experts:
- Dan Lifshits, Co-founder, Dwelly
- Richard Olsen, CEO, Pegasus Funding
- Joosep Seitam, Co-founder, Icecartel
- Luther Yeates, Co-founder and Head of Mortgages, UK Expat Mortgage
- Andrew Noble, Partner, Par Equity
- Michael Baron, Managing Director, BWS
Dan Lifshits, Co-founder, Dwelly
“As more investors shift their focus from the US to the UK, UK startups are in a prime position to seize this opportunity. Traditionally, when we think of the “next big thing,” our minds often turn to Silicon Valley, New York, or emerging hotspots like Austin and Miami. And with good reason—the US market is vast, unified, and highly receptive to risk and innovation, making it a natural breeding ground for groundbreaking startups.
“However, while the EU—home to the UK—is one of the world’s largest economic zones, it presents a different landscape. The market may not be as conducive to product-first companies that are focused on creating entirely new markets or customer needs, which are often better suited to the more novelty-driven US market.
“That said, Europe’s economy still offers enormous potential, particularly in sectors that are ripe for disruption and not looking for a new customer “use case” being found. Many traditional industries—such as logistics, construction, healthcare, and education—remain bogged down by outdated systems, heavy regulation, and a resistance to change. These sectors are practically crying out for innovation.
“UK startups have a unique opportunity to introduce tech-enabled solutions—whether through automation, AI, or smarter workflows—to transform these industries. Not only can they streamline operations, but they can also redefine entire sectors, creating new business categories along the way.
“This strategy holds significant financial upside, aligning perfectly with the aggressive, category-defining investment approach that many US investors are known for. With the right vision and execution, UK startups can tap into this wave of investment, drive meaningful disruption, and emerge as market leaders in Europe.”
Richard Olsen, CEO, Pegasus Funding
“As more US-based investors look towards the UK, we see a real opportunity for British startups — not just to access capital, but also an opportunity to change-up the speed of work.
“US investors bring a more ambitious mindset than traditional UK funding sources. They’re comfortable with higher levels of risk, ticket size, and scaling expectations. UK founders who meet that energy, with bold vision, route to revenue, and strong storytelling skills, these are the ones that stand to benefit the most.
“It’s not just about pitching harder. It’s aligning your business to the methodologies of this new audience. It’s tightening up on reporting, getting metrics investor-ready, and speaking the language of venture-scale ambition.
“Now’s the time to build bridges, not just pitch decks, so get out networking in the relevant circles, and be prepared to step up to the conversation.
“For UK startups, now’s the time to internationalise your outlook, position yourself for cross-border investment, and make yourself visible where these investors are already looking.”
Three practical tips for founders:
1. “Get due diligence ready – Have your financials, cap table, and customer pipeline clearly documented.
2. Think beyond SEIS/EIS – Many US investors don’t benefit from UK tax schemes, so your fundamentals need to stand on their own.
3. Be present where they are – Attend global investor events, update your LinkedIn with international growth metrics, and consider raising via platforms or funds with US reach.”
Joosep Seitam, Co-founder, Icecartel
“US investor migration to the UK is a golden opportunity for UK startups. Investors do not only bring money, they bring networks and global ideas. UK startups must make use of this opportunity and begin to develop trust as soon as possible. Investors like to see that you are solving real problems with scalable solutions. As a UK startup, you must have the capacity to execute your ideas.
“Simplify things as much as possible, and be precise. Investors don’t like overexaggeration. You must fine-tune your pitch simplicity. Don’t overcomplicate it. Highlight your unique advantage, market knowledge, or ability to learn faster than others.
“US investors seek fast growth. Show them that you are scale-ready. Have your metrics sharp—customer acquisition cost, lifetime value, burn rate—and show that you’re building a business. Highlight showing profit potential or the capability to show a clear path to it.”
Luther Yeates, Co-founder and Head of Mortgages, UK Expat Mortgage
“We’ve deliberately marketed towards US investors who are considering a shift to the UK market – particularly the UK property market. UK property has become more and more attractive to international investment – note for example that it’s been very resilient to the Trump tariffs, despite the UK stock market falling circa 4%.
“I think start-ups just need to pivot their offering to cater to the new demographic – whether that’s tweaking their branding or core sales messaging, or publishing new content that’s dedicated to that target audience, either via an SEO strategy, social media, or paid ads. That’s the advantage of a start-up – being flexible and agile enough to hone in on new opportunities where larger, more established companies will be slower to react.
“Think about what US investors will need coming to the UK, and how you can give them value. In our case, that’s property financing. Mortgages can be very difficult to acquire as a non-UK resident – a US bank won’t facilitate a loan – and you really need a specialist fighting in your corner to get a good deal from a mainstream UK bank. That’s where we come in. While traditionally we help Brits who have moved abroad, we’ve been more flexible with our offering to cater to this new market and have seen plenty of clients relocating since Trump was re-elected.”
Andrew Noble, Partner, Par Equity
“The growing presence of US investors in the UK signals the country’s attractiveness as a global innovation hub. While the trend began gaining momentum in 2021-2022, with notable names like Sequoia, General Catalyst and Andreessen Horowitz entering the market and, whilst Andreessen has since closed its London office, recent moves such as Voyager’s new office in 2025 suggest that US investors view the UK as an attractive destination. For UK startups, the influx of US capital raises the bar for local VCs, fostering a more competitive and dynamic ecosystem. It also brings deeper pools of capital, global networks, and sector expertise that can help startups scale faster, especially in later-stage rounds.
“The key is ensuring that US capital isn’t just concentrated in London. The North has a wealth of scale-up companies – c. 50% more than in London by some reports – that are poised for growth with the right support and resources. To truly diversify capital geographically, there are three key ingredients: regional VC firms with strong local roots and national/international syndication strategies, government and institutional LPs backing funds outside of London, and founders and talent choosing to stay and scale in their home regions, rather than defaulting to London or Silicon Valley. If these elements align, and we can encourage further capital outside of London, the North has the potential to become a powerhouse for innovation in areas like deep tech, healthtech, and clean energy.”
Michael Baron, Managing Director, BWS
“With investors shifting their attention from the US to the UK more and more, startups on this side of the pond are in pole position to capitalise on new funding opportunities. However, this opportunity doesn’t automatically guarantee success, which will very much hinge on the business’s strategic readiness.
“This influx of capital will be driven by factors such as a strong talent pool, more favourable market valuations, and fast-growing tech clusters outside of the overcrowded US market, so founders will need to act quickly and smartly in order to capitalise.
“Presenting yourself as a strong local player is good in some circumstances, but here you’ll want to position yourself as a globally scalable business. Investors – particularly US investors – will be accustomed to clean governance, aggressive and ambitious growth plans, and polished narratives, so if your startup hasn’t quite got these processes ironed out, you may want to consider tightening up your legal structures – and being ready with compelling and data-backed stories to show both your traction and vision.
“Sectors like climate tech, AI, and deep tech are particularly hot right now, so if you’re in one of these sectors, you’re already on people’s radars. But there’s a certain cultural element to navigate; US-based investors have very different expectations – they want faster timelines, higher risk tolerance, and more assertive pitches – so having these will give you a real edge over the competition.
“This is not the time to wait for the “perfect moment” or those spot-on metrics; this is a rare opportunity when there is more capital available than deals. If you’re a founder who is prepared and can move fast to bridge the cross-Atlantic mindset gap, then you are in an incredibly strong position to scale.”
