According to Dealroom data cited by the Financial Times, British start-ups raised just £16.2 billion last year, far less than the more than £65 billion raised by their counterparts in Silicon Valley during the same period. In fact, the U.S. appears to be pulling further ahead each year. In 2024, 57% of global venture capital funding went to U.S. startups — the first time that share has exceeded 50% in over a decade, per Dealroom.

This widening gap is part of a years-long trend that U.K. founders have taken note of, the FT reports, and it’s prompting many to consider relocating abroad.

“Recognizing that most venture funding comes from the U.S., we set up as a Delaware corporation, the preferred and familiar structure for American investors,” said Mati Staniszewski, co-founder of the London-based AI company ElevenLabs, in an interview with the FT.

Barney Hussey-Yeo, founder and CEO of the AI start-up Cleo, told the FT that he already spends four months a year in San Francisco and is seriously considering a permanent move. “You get to a certain size where there is no capital in the U.K. And the problem is getting worse,” he said. “Honestly, the U.K. is kinda f***d if it doesn’t address [the problem].”