The recent departures of two major tech firms from the London Stock Exchange are just the latest signs that the UK is at a critical crossroads when it comes to supporting and scaling its tech ecosystem. Wise, once hailed as a poster child for UK fintech, has chosen to shift its primary listing to the United States. Alphawave, meanwhile, once considered one of the country’s leading semiconductor firms, is now being swallowed up by Qualcomm.
These developments signal a need for urgent attention to ensure the UK remains more than a stepping stone for foreign tech firms and becomes a global, self-sustaining hub for these businesses. We certainly have the resources to make it happen – the talent, ambition, and entrepreneurial spirit are all here – but the environment in which these companies grow, especially at the scale-up and public listing stages, remains deeply uncompetitive compared to the US. London is still a powerhouse for traditional sectors like energy and finance. But tech is different. It’s faster, riskier, and more capital hungry – and requires a different kind of support.
Too often, UK tech founders face a ceiling once they reach a certain stage. The capital markets here lack the appetite needed to fuel long-term, high-growth technology businesses. In 2024, UK tech startups raised $16.2bn, down from $19bn the year before, and barely half the $65bn raised by their US counterparts. That kind of disparity reflects a deeper problem. In the US, founders can tap into a broad base of investors, from tech-savvy institutional funds to aggressive growth capital, that understand the long game. In contrast, UK markets remain a little more cautious and a little more conservative when it comes to backing the next generation of tech.
Evolving the UK financial ecosystem
This isn’t just a policy problem. It’s a systemic one. If we want to build and retain world-class technology companies in the UK, the entire financial ecosystem needs to evolve. Banks, pension funds, and institutional investors all have a critical role to play. Right now, their support for UK startups is limited, both in volume and conviction. To build a more vibrant, resilient market, they need to get off the sidelines and start backing innovation in a meaningful way.
We’ve seen bold ideas floated in recent years: relaxing listing rules, unlocking pension fund capital for higher-growth investments, and encouraging more retail investor participation in IPOs. But momentum is still lagging. Meanwhile, the US continues to charge ahead, offering founders not just better valuations but better visibility, analyst coverage, and access to capital.
The implications of this trend go far beyond the headlines. If the UK can’t offer founders a compelling path to scale, the country will struggle to compete globally in the industries of the future, from fintech and AI to semiconductors and biotech. When companies like Wise and Alphawave choose to list elsewhere, it’s not just a blow to the LSE; it subtly affects the wider innovation landscape, influencing areas like job growth, research activity, and investor sentiment.
A new environment for UK startups to grow, scale and stay
The UK has a proud history of entrepreneurship and was home to huge success stories early on, such as DeepMind’s circa $500 million acquisition by Google in 2014, showing that market-leading tech can be born and scaled here. But history alone won’t secure our future. If we want to remain a global leader in technology and innovation, we need to create an environment where founders can start, grow, scale, and stay. That means competitive public markets, smarter financial regulation, and an investment culture that embraces risk and rewards long-term vision.
This is a pivotal moment. The choices we make now will determine whether the UK becomes a true destination for tech.
Lee Edwards is a VP for the EMEA region at Amplitude
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