Is it still worth building a startup in the UK?

+ weekly list of handpicked startup events for founders and investors in London

Author

Vasily Alekseenko
April 09, 2025

Is it still worth building a startup in the UK?

I saw a report this week that made me pause.

It’s from the TaxPayers’ Alliance — and it breaks down just how brutal the UK tax system is for entrepreneurs. The kind of brutal that makes you wonder why anyone’s still trying.

According to the report, if you’re building a business in the UK, you could end up paying up to 93% in taxes by the time you’ve earned, invested, scaled, and maybe one day tried to pass something on to your family.

Yes, that’s not a typo.

The government basically lets you keep 10p out of every £1 you generate.

Now let’s be honest — most founders don’t get to that point. Most don’t make millions. Most don’t even make a salary in the early years. But the message this sends is loud and clear: Don’t bother.

Because here’s the thing — even if you “make it”, you don’t really. You’ll still be hit at every stage:

  • Corporation tax when your company earns

  • Income tax and NI if you pay yourself

  • Capital gains if you exit

  • Inheritance tax if you die (cheerful, I know)

  • And VAT along the way for good measure

There’s a lot of talk about making the UK a “startup nation”. But the reality is we’re punishing the very people we’re relying on to create jobs and fuel the economy.

And it’s showing.

  • The number of new firms is down

  • The total number of UK businesses is falling

  • The fear of failure is rising

  • And people are simply giving up before they even start

I’m not saying entrepreneurs shouldn’t pay taxes. But if we keep sending the message that success will be punished — why would anyone bother?

What’s your reality right now as a UK founder?

(Anonymous, but the point is to show what we’re all really dealing with)

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So what could actually help?

Nothing radical. Just a bit of common sense:

  • Reward risk properly: If someone puts everything on the line to build something, let them keep more than 10% of the upside.

  • Make tax policy predictable: Founders already deal with chaos. Constant changes in tax rules make it even harder to plan.

  • Bring back incentives: More support for early-stage investors, better capital gains treatment, proper breaks for small businesses.

  • Cut the noise: Simplify the tax system so founders can spend more time building — and less time with accountants explaining why their spreadsheet has five tabs just for tax.

And what can we do as a founder community?

We stop waiting for someone else to fix it.

  • We start speaking up — not just in echo chambers, but to policymakers, to the media, to anyone who will listen.

  • We share stories, not just wins. The real cost of building something here — emotionally, financially, practically.

  • We collaborate — align with other founder networks, investor groups, and platforms already working on these issues.

  • And when there’s an election? We make noise. We ask candidates what they’re doing for small businesses, not just big corporations.

If we want change, we need to be louder, more united, and harder to ignore.

Otherwise, this cycle will continue — and the next generation of founders won’t even get started.

Full report is here if you want to dive deeper.

Before we jump into events, a quick personal update…

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RARE FOUNDERS EVENTS🔥

Rare Founders

TOP 100 - Pitch Practice

​We’re hosting an online pitch training session to help TOP 100 founders sharpen your pitch ahead of Demo Day on 25th April. Join and learn from their live pitching and feedback.

Online event

Fri 11 Apr, 9:00 - 10:00 BST

Fri 11 Apr, 16:00 - 17:00 BST

Rare Founders

London’s Largest Demo Day

100 pre-selected founders will get on stage to pitch to the audience of hundreds of investors. Join 30+ founders who secured funding at the last demo day in Oct.

Tickets to attend are FREE. Join the waitlist here.

In-person event

1 Wimpole Street, Westminster, London, W1G 0AE, UK

Fri 25 Apr, 9:00 - 17:00 GMT

Rare Founders

The Great Startup Market

​After a jam-packed day at London's Largest Demo Day, we're bringing you 'The Great Startup Market' as our evening event!

Join our rapid-fire high-energy event where hundreds of startups ‘trade’ their products and services with one another in order to gain those all-important early-adopters and champions.

In-person event

1 Wimpole Street, Westminster, London, W1G 0AE, UK

Fri 25 Apr, 18:00 - 22:00 BST

OTHER LONDON EVENTS🌟

Can We Design AI To Support Human Flourishing?

A symposium explored how AI can be designed and deployed to enhance the human experience across emotional, social, professional, intellectual, and creative dimensions. Through panels, talks, and live research demonstrations, it invited reflection on the kind of future people want to build with AI.

Online event

Thu 10 Apr, 08:30 - 17:30 BST

Founders Virtual Lunch

Join an intimate virtual gathering designed for startup founders to connect, share wins, and gain expert insights on fundraising and growth from top investors and advisors. Join for direct feedback, candid conversations, and relationship-building in a relaxed, supportive setting.

Online event

Fri 11 Apr, 20:00 - 21:00 BST

Join this immersive three-day AI experience in Shoreditch, where developers, industry leaders, and top AI talent collaborate to shape the future of AI through a hands-on hackathon. Participants will have 24/7 access to work on innovative projects inspired by the latest AI advancements.

In-person event

41 Pitfield St, London, N1 6DA, UK

Fri 11 - Sun 13 Apr, 10:00 - 17:00 BST

Alternative Funding Show

This session explores bootstrapping strategies, focusing on how to reach early revenue through low-cost MVPs. It highlights practical insights for founders seeking to grow with limited resources.

Online event

Fri 11 Apr, 10:30 - 11:00 BST

The Decentralised Science Conference 2025

This event explores the global movement of Decentralised Science, showcasing over 150 projects aimed at solving major challenges in science such as funding, reproducibility, and data ownership. Attendees can expect a mix of project showcases and practical workshops designed for all backgrounds, with no prior knowledge required.

In-person event

Gower St, London, WC1E 6BT, UK

Sat 12 - Sun 13 Apr, 10:00 - 18:00 BST

London Fintech Breakfast

Join a relaxed, no-agenda breakfast meetup that brings together top minds in fintech for casual networking over coffee, juices, and pastries. Drop in anytime to connect with fellow founders, operators, and investors in a laid-back setting.

In-person event

34 Charlotte Rd, London, EC2A 3PB, UK

Mon 14 Apr, 8:30 - 10:30 BST

The UK's Biggest Blockchain Education Event

The UK's largest student blockchain event brings together students from over 25 universities for a day of expert-led panels, workshops, and networking focused on Web3 innovation. Attendees can explore topics like DeFi, NFTs, and AI, engage with 40+ industry speakers, and experience immersive digital art and interactive sessions with leading Web3 companies.

In-person event

1-3 Rivington St, London, EC2A 3DT, UK

Mon 14 Apr, 09:30 - 18:00 BST

Online Small Business Meet-Up: Leicestershire

Join an online meet-up designed for small business owners to connect, share ideas, and support each other in a relaxed and collaborative setting. Attendees join to gain insights, solve challenges together, and build valuable relationships to grow their businesses.

Online event

Mon 14 Apr, 22:00 - 23:00 BST

London AI Design Night

An open Q&A explores what it takes to design fast-growing AI companies, hosted in an intimate setting at Granola’s new offices. Attendees can expect insights, drinks, and pizza—spaces are limited and punctuality is essential.

In-person event

Hoxton St Area, London, UK

Mon 14 Apr, 18:00 - 20:30 BST

Building Agentic AI Workflows for Fintech and Professional Services

Join a deep-dive session exploring how Agentic AI is transforming workflows in Fintech and Professional Services through autonomous systems. Discover real-world applications, implementation strategies, and key ethical considerations shaping this emerging technology.

Online event

Thu 17 Apr, 11:00 - 12:00 BST

How To Make Your First Hires

A group of VCs and founders share insights on building an early team, offering advice on what to look for in the first 10 hires. The session covers key topics like hiring strategy, compensation, and lessons from real-world experience.

Online event

Thu 17 Apr, 12:30 - 13:30 BST

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Vasily Alekseenko
Founder
@ Rare Founders

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

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