UK vs US
The US remains the global leader in the technology industry. It is the home of the world’s largest tech companies and established, innovative and competitive tech ecosystems across multiple states.
That said - our survey results revealed that UK tech leaders have confidence at home. 74% responded they feel the UK is better compared to the US when it comes to access to funding and listing. They see the UK as the best place to build their business.
How, if at all, do you feel that the UK compares to the United States in terms of access to funding whether by debt, raising capital or exploring a listing on a public stock exchange?
The UK is significantly better than the US
The UK is somewhat better than the US
They are the same
The US is somewhat better than the UK
The US is significantly better than the UK
Feel the UK is a better place than the US on access to funding
Have aspirations to list in the UK
This raises intriguing questions about why the UK scored higher than the US. Factors like the cost of labour and operations might play a role. There is significant variation between the two countries. For example, software engineers in the US, particularly in places like Silicon Valley, command higher salaries compared to those working in the UK.
The startup culture in the US benefits from more established and wider innovation ecosystems which generate typically larger investment amounts. UK investors have tended to be more conservative. Despite this, UK tech businesses are attracting increasing levels of investment from the overseas, including the US. UK tech and IP remains attractive. Forecasts of a strong dollar into 2025 may embolden US investors to make further forays into UK tech across VC investment and M&A activity.
IPO aspirants
London is Europe's largest stock market, but IPOs have been subdued over the past couple of years. Market conditions, high interest rates and a fall in investor demand have all been contributing factors, but the recent economic improvements and rising confidence are helping businesses reconsider their options. Our survey showed that 53% would choose the UK, 47% of businesses would choose to list in the US, while 42% would prefer to list in Europe.
Does your business have any plans to become a public company?
Yes in the UK
No
Yes in the US
Yes in Europe
This challenges the prevailing narrative that tech companies prefer the US market and is a positive sign for the UK's strength in fostering innovation-led businesses and reflects confidence in the future growth of UK tech.