Founders Pulse: Our Impact So Far

Want to drive UK Government policy and ensure your voice is heard? We created Founders Pulse to bridge the gap between what founders need and what the Government delivers, helping to create the conditions for UK tech to succeed. 

By joining our Founders Pulse community and participating in our regular founder surveys, you’ll contribute to insights that we share directly with our contacts at Number 10, the Treasury, and across government departments – and these insights have already driven meaningful policy decisions.

In just six months, we’ve helped secure major policy wins by putting founder priorities front and centre. The Government’s new Digital & Tech Sector Plan, as part of the Industrial Strategy, reflects many of the recommendations you’ve shared with us – including better access to scale-up capital, smarter immigration and procurement policies, and stronger support for regional tech. 

We successfully called for tech to remain central in the Spending Review, resulting in major innovation funding and a strong signal that tech will continue to power national productivity. And when the Treasury proposed new carried interest rules, we pushed back helping prevent added red tape for founders and investors. 

Here’s a roundup of our activities and impact so far:

Industrial Strategy: Delivering Founder Priorities

The new Industrial Strategy and its dedicated Digital & Tech Sector Plan reflect many of the recommendations you’ve shared with us over the past year which we’ve relayed directly to our contacts in government.

Following these efforts, in June we surveyed 150 UK tech founders who shared their views on the Industrial Strategy post-announcement.

• 1 in 3 said they believe their business will benefit from the Industrial Strategy.
• Although confidence in the Industrial Strategy is less keenly felt among later-stage founders (companies with $50m+ valuations).
• The Industrial Strategy landed with founders, with 1 in 2 identifying its key goal as improving innovation in industry, with other key goals listed including providing additional funding for key sectors and improving access to finance.
• Among those who don’t believe the Industrial Strategy will benefit them, more than half said they don’t believe the Government will achieve its goals, while others said only certain businesses in certain sectors will benefit.

Spending Review: Prioritising UK Tech

In February, we urged the Government to ensure tech remains central to the UK’s economic strategy via meetings with senior government leaders and our response to the Industrial Strategy consultation. 

The Spending Review delivered major capital commitments for tech, strong backing for the Department for Science, Innovation and Technology, and a clear signal that innovation will be key to driving productivity across the entire government.

Still, founders are less confident regarding the implementation of the announcements made in the Spending Review. In our June survey, the majority of founders who responded said the Spending Review would either make things worse for their business or have no positive impact, with later-stage founders especially pessimistic.

We continue to stay in touch with the Government on spending priorities throughout the year. Earlier this year, we submitted evidence to the Treasury’s consultation on carried interest. We argued that adding extra qualifying conditions would create unnecessary red tape for founders and investors. The Government has confirmed it will not proceed with its proposed changes – a clear win for the sector.

Additionally, before and after the Spring Statement, we surveyed founders to communicate their key priorities and concerns when it comes to government spending plans, which included:

• Support for Startups & Scaleups: Founders seek tailored policies to help innovative companies scale domestically. They want increased SEIS thresholds, more grants, and better public sector support to prevent early exits or relocations.
• Tax & Employment Incentives: The current environment is perceived as hostile to entrepreneurship. Founders desire revised tax relief, expanded startup investment incentives, reduced employer costs, and more flexible employment laws.
• Inward Investment & Global Competitiveness: Founders feel that the UK is losing the global race for talent and capital. Founders want bold moves to position the country as a startup powerhouse, including improved investment incentives and entrepreneur-friendly policies.
• Business Climate Challenges: Again, founders express concerns about increasing taxes, reduced innovation support, and a negative business perception. Many are considering shifting growth plans abroad due to perceived lack of government support for entrepreneurship.

Founders Pulse: Influencing Government Priorities

Our quarterly sentiment surveys completed by Founders Pulse members provide government with a regular barometer of UK founder sentiment. In May, we surveyed 420 UK tech founders, including 25% growth-stage founders of Series A+ companies:

• More than half were less optimistic about the country’s economic situation than they were 12 months previously.
• However, this didn’t dampen belief in their own business prospects: 50% rated their growth prospects as stronger than six months ago and around 60% said their business will grow in the next quarter.
• Founders are less sure on funding: Only 20% were confident in raising funding in the UK in the next six months.
• 60% had seriously considered relocating out of the UK in the last 12 months for business reasons.
• This was mainly due to several key challenges, principally UK taxation rates, followed by access to scale-up funding, economic uncertainty, regulatory burdens, and talent acquisition.

Clearly, there is work to be done. With Founders Pulse, we advocate for founders by raising the challenges you face and pressing the Government to deliver practical solutions that build a better tech ecosystem here in the UK.

By joining Founders Pulse you’ll:

• Have real policy influence: Share your views through quick, simple surveys on the issues that matter to UK tech.
• Connect with decision-makers: Join our roundtables with policymakers, investors and industry leaders.
• Get insider insights: Access the latest data on what other founders think and what’s coming in policy.
• Raise your profile: Ensure the founder voice is heard in government and inform our reports and updates that reach key policy decision makers.

Click here to sign up