UK founders say Britain sells itself poorly despite record unicorn count

The UK has minted a record 80 unicorns worth a combined £242.4bn, placing it third globally behind only the United States and China, yet seven in ten founders believe the country does a poor job of selling itself to the world.

The finding comes from a survey of entrepreneurs conducted by The Entrepreneurs Network in partnership with Public First. Despite the boom in billion-pound valuations, including Synthesia, Darktrace and the two-year-old AI chip firm Olix, valued at £2.5bn this week, respondents said the government must fix both the narrative and the fundamentals.

Tax rates top the priority list

When asked what shapes their judgement of a country, founders ranked tax rates first, the pull of investor networks second, and cultural factors such as language and lifestyle third. The two strongest selling points for the UK were its Enterprise Investment Schemes, which offer tax breaks for investors, and its status as Europe's largest venture capital market, cited by 49% and 42% of respondents respectively.

The results echo warnings from financial leaders. Jane Fraser, chief executive of Citi, has cautioned that further tax rises could push banks toward rival centres, a concern that extends to the broader financial services ecosystem that supports high-growth startups.

London's appeal and its cost problem

For founders based in the capital, the single biggest draw is the established industry ecosystem, cited by 48%, rather than access to capital. Once established, 63% say a London base makes fundraising easier, while credibility, partnerships, media relations and government access also score highly. Hiring is the only area where a significant minority see a disadvantage.

However, the drawbacks are almost entirely financial. Eighty-three per cent name the cost of living, rent, commuting and daily expenses, as a top downside, while 73% point to high operating overheads such as office space and salaries. More than half of London-based founders have considered moving their company out of the capital in the past year, and over a quarter have seriously considered or actively planned to do so.

Where founders would go

If they leave, founders look west. San Francisco and New York were named far more often than any other cities, at 48% and 44% respectively, followed by Singapore (21%) and Dubai (14%). European hubs such as Berlin, Amsterdam and Paris trail well behind, suggesting UK entrepreneurs see their competition as transatlantic and global rather than continental.

Domestically, Manchester emerges as the leading alternative to London, ahead of Cambridge, a potential bright spot for the new Prime Minister, who previously led Greater Manchester.

The survey underscores a simple message: the UK no longer lacks billion-pound founders. What it needs, they say, are reasons for them to stay.