In recent months, there’s been a lot of news that AI startups are leaving the UK for other countries. Back in February, the House of Lords Communications and Digital Committee published a report, expressing concerns about this trend. It warns that unless the UK steps up its support for AI and tech companies, it risks becoming an “incubator economy” — a place where promising startups are born but quickly move elsewhere after outgrowing their home market.
One example of this trend is the AI company 11X, which recently secured a $24 million Series A round and then relocated to the U.S. The UK has long been a thriving startup hub, but it seems to be losing its ability to keep these businesses within its borders.
The two big questions now are: why is this happening, and what can be done to turn things for the better?
The way I see it, this startup exodus is driven by multiple factors. The UK faces serious competition from other jurisdictions with more attractive regulatory environments, tax incentives, and funding opportunities. This issue is particularly pronounced…
