How Founders Can Fix the UK Startup Ecosystem

The US is the undeniable leader in the global startup ecosystem. While the UK has made significant strides in recent years, creating better opportunities for businesses to grow, the reality is stark: eventually, many UK startups flee to the US for better funding and greater opportunities.

UK Reality Check:

• No significant pension fund support (3-10% vs. 72% in the US)

• Low appetite for risk

• Painfully slow decision-making

• Disconnected ecosystem

• Most UK VCs lack operator experience

This paints a clear picture—the UK has work to do. But instead of waiting for institutions to change, what if we could fix it? As founders, we have the power to reshape the UK startup ecosystem from the ground up. And it starts by investing in each other.

The Power of Founders Backing Founders

As founders, we know the challenges of building a business—the sleepless nights, the pivots, the relentless grind. That lived experience gives us a unique ability to support other founders in ways traditional investors often can’t.

Why Founders Make Ideal Early-Stage Investors

• Operational Expertise: You’ve scaled businesses, navigated challenges, and made tough decisions. This expertise is invaluable to early-stage startups.

• Empathy and Insight: You’ve been in their shoes, making you a more understanding and supportive partner.

• Network Power: Your connections can open doors for other founders, from finding customers to attracting follow-on funding.

Early-Stage Investments: A Massive Opportunity

Research highlights the transformative potential of early-stage investments:

• Higher Success Rates: Startups receiving funding from experienced founders in their first year are 60% more likely to achieve an exit through acquisition or IPO within eight years (Bhalisa Sodo study).

• Exponential Returns: Early-stage investments can yield returns of 10x, 50x, or even 100x.

• Market Outperformance: Seed-stage investments often outperform later-stage funds, with top VC funds delivering annual returns of 15%-27%.

Founders are uniquely positioned to spot and support the next wave of innovative startups. By becoming angel investors, you’re not only creating wealth but also shaping the future of entrepreneurship.

Be the Change: Why It Matters Now

Waiting for pension funds or large institutions to step up isn’t a viable solution. Founders backing founders is the fastest and most impactful way to bridge the gap and strengthen the UK startup ecosystem.

By investing in each other, we validate ideas, amplify voices, and create a ripple effect of opportunity. It’s about more than funding—it’s about building a legacy of collaboration and support.

Rare Founders: Leading the Charge

At Rare Founders, we believe there are RARE founders out there with groundbreaking ideas who aren’t being heard. Our mission is to change that by providing a platform where these visionaries are not just heard but noticed.

We’re working on something exciting for next year to support founders at the super early stage—a movement to empower those with untapped potential.

If you’re a founder ready to join this movement and support startups, join the waitlist here to be the first to hear about it.

Let’s not wait for change. Let’s be the change.

By investing in each other, we’re building a stronger, more innovative UK startup ecosystem—one that doesn’t rely on anyone for success. Together, we can create a future where UK startups thrive on home soil.

While we gear up to tackle 2025, take a look at the recordings from some of the events we hosted over the past few weeks in case you couldn’t join us.

🌟OPEN MIC PITCHING NIGHT🎤 

🙉FOUNDER PITCH RELAY📣 

🤓USER RESEARCH MASTERCLASS❤️

🌿WHERE TO START WITH YOUR MVP💸

💥BUILDING A BUSINESS WHILE NAVIGATING MOTHERHOOD🦸🏽‍♀️

Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.