Investment in UK companies with international founders falls by a third since 2021

Equity investment deals into UK companies with international founders has fallen year-on-year since 2021, with sums raised down by more than a third (36.2 per cent) since then, analysis from Rathbones has shown.

Using data from Companies House, Rathbones found that the number of deals into UK companies with non-UK resident founder was at its lowest level since 2020.

It has fallen from a 2021 peak of 2,035 with £10.3bn raised, down to 1,086 with £6.5bn raised.

The number of active companies with international founders peaked in 2023 with a high of 7,431.

In 2024, the number of active companies with non-UK resident founders fell for the first time in more than a decade, to 7,431.

Rathbones said that this new downward trend suggested a “marked cooling” of business activity in the UK from non-UK residents, which pointed to a more challenging environment for attracting global talent and raised concerns about inward investment in the UK.

As part of the same research, the wealth manager found that almost 6,000 high-growth business owners left the UK between January 2024 and January 2026, led by those in sectors such as technology and software.

“While the UK continues to be a recognised centre for innovation and globally minded entrepreneurship, this fall in investment activity is a real warning sign,” said Rathbones head of private office, Michelle White.

“These shifts mirror what we are seeing among internationally mobile clients - increasingly, people with greater wealth are more globally mobile and this trend is shaping investment in UK companies.

“Rising interest rates since 2021, alongside the abolition of the non‑dom regime and phasing out of Business Investment Relief, have also introduced new uncertainties for internationally minded founders weighing the UK against other global hubs.

“For the UK to remain internationally competitive, we must attract and retain the founders and wealth creators who drive long‑term growth.”

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