Is United Kingdom a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

United Kingdom has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what United Kingdom gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in United Kingdom

Funding is one of the most critical ingredients in building a successful startup – and United Kingdom offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The UK's early-stage funding environment is dynamic, supported by various players. Notable early-stage VC firms include Seedcamp, Passion Capital, and LocalGlobe, while angel networks like the UK Business Angels Association (UKBAA) are crucial for connecting founders with investors. Government support is available through initiatives like the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS), offering tax reliefs to investors, and Innovate UK grants for innovative projects. The Start-Up Loans Scheme also provides low-interest loans and mentoring. However, challenges persist, including intense competition and complexities in accessing funding. While the UK remains a leading VC market globally, there are concerns about a "scale-up gap," where later-stage funding is harder to secure compared to the US, potentially leading companies to seek investment or relocate overseas. Despite a dip in total investment in 2023, early-stage deal flow has shown some resilience, though investors are increasingly focused on companies demonstrating stronger traction.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

United Kingdom has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

The UK boasts a dynamic startup and innovation culture with significant entrepreneurial activity. Coworking spaces and tech events are prevalent, fostering a collaborative ecosystem, particularly in hubs like London, Manchester, Cambridge, and Oxford. While the UK has a thriving early-stage investment ecosystem, there's a recognized challenge in supporting startups to scale up. The support landscape is evolving, with a move towards more personalised support mechanisms rather than solely competitive, standardised programs. Various accelerators, incubators, and government initiatives offer tailored guidance, funding, and networking opportunities for founders at different stages. However, concerns exist about retaining innovative companies and talent in the UK to prevent becoming an "incubator economy" where startups are developed but scale elsewhere.

For many entrepreneurs, the energy and resources available in United Kingdom can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like United Kingdom, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in United Kingdom is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

The UK possesses a strong talent pool for startups, significantly supported by its renowned educational institutions. Universities like Oxford, Cambridge, UCL, and Imperial College London are notable for producing entrepreneurial graduates and fostering innovation, particularly in tech and STEM fields. Many universities also offer accelerator programs and support for student startups. Key industry-specific skills available include those in technology, such as AI, data handling, cybersecurity, and cloud computing, as well as essential business skills like marketing, finance, and management. Local talent supports entrepreneurial growth by providing a skilled workforce with valuable local market knowledge. While competition for talent can be fierce, especially in hubs like London, various recruitment agencies specialize in connecting startups with suitable candidates. Government initiatives and university programs also aim to connect businesses with skilled graduates and provide support for innovation.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in United Kingdom can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

United Kingdom boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

The UK offers a robust ecosystem for startups, featuring extensive infrastructure and support systems. This includes a wide network of incubators and accelerators providing mentorship, resources, and networking opportunities. Co-working spaces are prevalent, fostering collaboration. Government initiatives play a significant role. Schemes like the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) offer tax incentives to attract investors to early-stage businesses. Innovate UK provides grants and support for R&D and innovative projects. Start Up Loans offer government-backed funding and free mentoring. These resources help businesses access crucial funding, gain expertise, and navigate the challenges of growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in United Kingdom. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can United Kingdom Be Considered the Best Place to Launch a Startup?

There’s no doubt that United Kingdom provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in the UK face significant challenges. Competition is fierce across many sectors, making it difficult for new businesses to stand out and attract customers. The high cost of living, particularly in major cities like London, translates to steep operating costs, including rent and energy bills, and can impact hiring as employees seek higher wages. Additionally, navigating the UK's complex regulatory landscape, encompassing areas like tax, employment law, and data protection (GDPR), requires careful attention and can be time-consuming and costly for startups. Post-Brexit regulations have added further complexity, especially concerning trade and hiring.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in United Kingdom or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while United Kingdom offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash