The UK is effective at providing seed-stage support for tech companies, but struggles to back them through their growth phases, a panel at the SCALE Summit in London heard on 23 April. Marcus Stuttard, Head of AIM & UK Primary Markets at the London Stock Exchange Group (LSEG), and tech founders discussed the challenge of retaining high-potential tech companies in Britain.
While the UK's initial conditions for startups are strong, with panellists praising the talent-to-cost ratio and regulatory approach, a gap in funding emerges as businesses look to scale. Michael Smith, co-founder of Sagittal AI, noted that investors often require significant revenue before providing substantial investment, unlike in the US where vision is more readily backed.
Lewis D’Ambra of Space Forge, which raised £22.6m in 2025, stated that most of his company's private capital came from outside the UK, with the largest single cheque from Germany and the bulk from the US. He attributed this to a greater risk appetite among overseas investors.
Stuttard highlighted that the UK attracts considerable overseas investment, which is a strength, but argued for increased domestic capital to underpin British businesses. He suggested that changes in pension fund regulation, moving beyond a sole focus on cost to consider long-term returns, could have a significant impact in the coming years.