Equity investment deals into UK businesses with international founders has dropped by more than a third since 2021, according to Rathbones.
The wealth manager’s analysis of filings at Companies House found that the number of deals into UK companies with non-UK resident founders is at its lowest level since 2020, down to 1,086 with £6.5 billion raised. This follows a peak of 2,035 in 2021 with £10.3 billion raised, marking a 36.2% fall in value.
It also showed that the number of active companies with international founders declined in 2024 for the first time in more than a decade, dropping to 7,364 from a 2023 high of 7,431. The figure has grown from just 4,203 in 2016, highlighting how sharply international interest in the UK had risen before a recent slowdown.
As part of the same research, Rathbones recently detailed how nearly 6,000 high-growth business owners left the UK between January 2024 and January 2026.
Michelle White, head of private office at Rathbones, said there are a number of factors that might deter international investors.
“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. 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.”
Rathbones’ analysis found that tech and digital sectors attract the highest proportion of internationally mobile founders, with Blockchain, cryptocurrencies, trading platforms and challenger banking among the sectors with most non-UK resident founders.
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