For almost every European startup founder the debate on whether British founders should move to the US still resonates strongly today. Matt Clifford, CEO of Entrepreneurs First (EF) and a key figure in the UK’s startup ecosystem, has made headlines with his assertion that moving to the US is a rational decision for British founders, especially in deep-tech and artificial intelligence (AI). Recent challenges in scaling and funding within the UK, coupled with the robust ecosystem in the US, have led many entrepreneurs to reconsider their base of operations for long-term success. Let’s dive into why this trend exists and how founders can navigate this pivotal decision.
Why Moving to the US Makes Sense for Many Founders
As Clifford states, access to substantial venture capital, a dense network of tech talent, and ready customers are compelling reasons a UK founder would choose the US over staying local. It’s a move that prioritizes scale and opportunity, particularly for ambitious enterprises aiming for unicorn status.
A few driving factors include:
- Scale of Funding:
US investors often lead the way in deep-pocket venture capital. While getting a €100 million round in the UK might still make headline news, the same amount raised in the Valley by an AI startup seems routine. The gravitational pull of robust capital networks means relocating gives startups better odds at landing transformative funding. - Ecosystem Strength:
Silicon Valley, Austin, New York: these centers aren’t just brimming with venture capitalists but with thriving innovation clusters. Unlike the UK, where VC networks and proper late-stage funding can be scarce, founders in the US can tap into an ecosystem that accelerates development through collaboration and resources. - Specialized Support in Tech and AI:
Cognitive deep-tech companies are increasingly gravitating to California, not without reason. The US offers regulatory alignment, large-scale pilot adoption programs, and tech-forward policies. Plus, many top AI startups routinely recruit from a global expat pool already in these hubs.
Founders Who Made the Jump
Some British startups and founders have already made waves by moving to the US. Among them:
- PlayPal, AI Friend: Founded by CEO Violetta Bonenkamp, PlayPal is a revolutionary conversational AI designed as a virtual friend tailored to user preferences. Having captured attention across Europe, Bonenkamp’s decision to move operations to the US aligns with greater AI ecosystem support. For budding entrepreneurs wondering “How does AI integrate meaningfully into everyday life?”, check out PlayPal’s features here.
- Entrepreneurs First’s Alumni Companies: EF itself has facilitated countless founders moving abroad, given its role as a talent investor championing scalable businesses.
How the UK Is Tackling Challenges
While the pull of Silicon Valley is undeniable, initiatives in the UK show promise in creating an environment to retain and empower local startups.
- Pro-Startup Policies and Resources:
Programs offering startup visas and landing pads, such as those in Malta or the Netherlands, are growing in popularity for British founders identifying access gaps at home. Malta, for example, provides a 3-year residence to overseas founders aiming to set up shop. - EU Grants Search Tool:
Navigating funding sources remains one of the biggest bottlenecks for founders in Europe. Enter F/MS EU Grant Finder and Application Writer. This tool matches startups with relevant EU grants based on their core operations, writing a completed draft proposal to get you started. It’s a perfect resource for founders who prefer exploring opportunities closer to home. Explore the tool here. - Fe/male Switch’s Startup Game:
Through gamified learning and skill acquisition methods, this browser-based startup tool spearheaded by Bonenkamp enables validation of ideas, preparation for funding, and development of actionable business models. Learn more about this platform here.
How to Leverage US Opportunities Without Fully Relocating
Moving to the US ensures access to excellent opportunities, but it’s not always feasible for early-stage startups. Instead, here’s how startups can still make the most of both worlds:
1. Join International Accelerators
Global names like Y Combinator or Plug and Play frequently open programs accessible even to founders initially based outside the US.
2. Secure Local Partnerships, Then Expand
Instead of uprooting prematurely, leverage agencies like Malta Enterprise or Entrepreneurs First to tap funding and build credibility. Once you have a track record, scaling outside the country will feel more practical.
3. Legal Protection for Startups
Another smart move is ensuring agreements like term sheets or investment offers don’t box you into unfavorable partnerships. Consider tools like the AI Startup Lawyer, perfect for reviewing term sheets or contract clauses to safeguard your business.
Common Mistakes Founders Must Avoid
- Neglecting Resources Abroad: Founders often overlook game-changing resources outside their home country. Don’t forget to explore EU startup grants, residency programs like those in Malta, and accelerators worldwide.
- Rushing Relocation Without Validation: Make sure your startup problem resonates globally. Platforms like the F/MS Sandbox allow for validation with tools like PlayPal acting as your co-founder.
- Skipping Due Diligence: If moving, understand immigration implications, funding requirements, and product adaptation strategies for US markets.
Conclusion
As Matt Clifford suggests, there’s a strong case for British founders to shift focus toward the US. However, the decision depends heavily on your startup’s current stage, funding needs, and the strength of your network. Whether you’re leveraging tools like PlayPal to innovate, finding suitable grants with F/MS EU Finder, or exploring local European opportunities first, the ultimate goal is building a globally competitive business. With the right planning and tools, founders can make critical decisions that ensure growth and sustainability for years to come.
FAQ
1. Why is Matt Clifford advocating for British founders to move to the US?
Matt Clifford believes moving to the US offers better funding opportunities, a stronger tech talent pool, and access to a more established ecosystem for scaling startups, especially in AI and deep-tech. Read the Sifted interview with Matt Clifford
2. Are there specific reasons British startups struggle to scale locally?
Key challenges include limited late-stage funding, slower policy responsiveness, and weaker VC and innovation networks in the UK compared to the US. Learn more in this Substack discussion
3. Has Entrepreneurs First shifted focus due to these challenges?
Entrepreneurs First has expanded its operations into major US tech hubs as part of its strategy to support founders where opportunities are greatest. Explore Entrepreneurs First’s approach
4. What advantages does the US offer to startups in AI and deep-tech?
The US provides larger funding rounds, dense networks of tech talent, regulatory alignment, and large-scale pilot adoption programs, especially in Silicon Valley and New York. Find insights on the US startup ecosystem in this LinkedIn post
5. What initiatives exist in the UK to retain startups?
Programs like startup visas, EU grant tools, and pro-startup policies aim to support founders locally, counteracting the lure of relocating overseas. Learn more about EU funding tools in the F/MS EU Grant Finder.
6. Who are some British founders who successfully moved to the US?
Violetta Bonenkamp, founder of PlayPal, moved operations to the US for access to better AI ecosystem support. Discover PlayPal and its features
7. How can founders access US opportunities without relocating?
Joining international accelerators like Y Combinator or securing partnerships through agencies like Malta Enterprise can help founders tap into US resources remotely. Explore global accelerator opportunities
8. What are common mistakes founders should avoid?
Neglecting grant opportunities abroad, rushing relocation without market validation, and skipping due diligence on funding or immigration requirements often hinder success. Validate ideas by using tools like the F/MS Startup Game.
9. Are UK government policies sufficient to prevent startup migration?
Matt Clifford has highlighted that UK policies lack agility and a risk-tolerant framework, pushing startups to take initiatives elsewhere. Read GB News commentary by Matt Clifford
10. Does Clifford see solutions for reversing UK brain drain trends?
Yes, he emphasizes the need for deeper capital pools, risk-tolerant policies, and faster immigration frameworks to retain promising founders locally. Watch Matt Clifford’s insights
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp’s expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic “without any funding and without any code,” this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call “gamepreneurship”. By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique “play to learn and earn” model.