Great Britain offers Ukrainian startups in the early stages of development unique opportunities for growth and investment. The country has a developed ecosystem, favorable tax legislation and active support for innovation, which makes it attractive for entrepreneurs from Ukraine and Central and Eastern Europe.
Opportunities for startups
Investment climate in Great Britain
The British market of venture capital investments occupies a leading position in the world. In the first quarter of 2024, local venture funds attracted a record $50.2 billion. The technology sector of the country for the first time in history crossed the mark of $1 trillion in 2023. According to Beauhurst, there are 547 active venture capital and private equity funds in the UK.
UK investors are increasingly favoring startups with balanced growth models that include strategies diversification, optimization of costs and improvement of operational efficiency.
Advantages of the British market for Ukrainian startups
According to Denys Gursky, partner of 1991 Ventures, Great Britain is the most attractive country for Ukrainian startups startups looking for investment in Europe. Geographical proximity to Ukraine, stable political climate, active support for innovations and international environment create favorable conditions for business development.
Among the most active British funds for early stages, Antler and SFC Capital should be singled out. Other notable funds include Balderton Capital, Octopus Ventures, Index Ventures, Earlybird Venture Capital and Accel Partners.
Preparation for investment attraction
In order to successfully attract investment from British funds, startups are recommended to: - Establish contact with potential investors by 6-12 months before the start of the round - Provide regular updates on the startup's achievements - Demonstrate international traction - Be ready for business due diligence
Ecosystem and networking
Great Britain has a developed network of accelerators and incubators to support early-stage startups. There are private clubs and communities for entrepreneurs in London, such as Home Grown and Tech London Advocates , which organize regular networking and experience sharing events.
A strong community of Ukrainian technological entrepreneurs has also formed in the country (UA Tech in London) , which has more than 300 participants.
Company registration and visa
The process of registering a company in the UK is simple and affordable. Registration is through Companies House and costs just £12. Global Talent and Innovator Founder visas are popular for the physical presence of startups in the country.
The UK government actively supports the involvement of foreign start-ups through various programs and services such as such as the Global Entrepreneur Program (GEP) and Help to Grow from the Department for Business and Trade (DBT).
Tax advantages
The UK tax system offers a number of advantages for innovative companies: - General corporation tax rate: 19% on profits up to £250,000 and 25% for larger amounts - R&D Tax Credits: tax credits of up to 230% on research and development costs for small and medium-sized enterprises - Patent Box: reduction of the corporate tax rate to 10% on profits from patented inventions - Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS): tax benefits for investors investing in new start-ups
Conclusions
Great Britain offers a favorable environment for Ukrainian startups seeking to enter the international market. An open startup community, government support and a developed ecosystem will help you quickly adapt and find the necessary resources for business development.
Glossary
- 1991 Ventures is a venture fund founded by Viktor and Denis Gursky, which invests to innovative entrepreneurs from Ukraine and the CEE countries
- UK-Ukraine Tech Bridge - an initiative to support Ukrainian startups in entering the UK market
- Companies House - the government organization of Great Britain, responsible for the registration of companies
- Department for Business and Trade (DBT) - the Ministry of Great Britain, which deals with issues of business and trade
- R&D Tax Credits - a system of tax credits for companies carrying out research and development in Great Britain
Link
- Announcement of UK tech sector reaching $1 trillion
- sifted research on active funds
- Site Business Club Home Grown
- Community site Tech London Advocates
- Ltd company registration guide on UK government website
- Official UK Government website
- Information about Innovate UK grants
Answers to questions
What are the advantages of the UK market for Ukrainian startups?
How can Ukrainian startups attract investment in Great Britain?
What tax benefits are available to innovative companies in the UK?
How to register a company in Great Britain?
What networking and growth opportunities are available for startups in the UK?
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Discussion of the topic – How Ukrainian startups conquer the UK market: insights from 1991 Ventures
The article reveals the key aspects of the entry of Ukrainian early stage startups to the UK market, based on the experience and support of 1991 Ventures - a new venture fund announced in London in the spring of 2024.
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Olena
Wow, what great news about 1991 Ventures! 🚀 This really opens up new opportunities for Ukrainian startups. I was particularly interested in the UK-Ukraine Tech Bridge program. Does anyone know more details about how it works?
Markus
Olena, this is really impressive! I heard that the program helps with entering the UK market by providing mentorship and connections. But I'm more interested in how they choose startups to participate. Does anyone know the selection criteria? 🤔
Sophie
Markus, as I understand it, they are looking for innovative projects with the potential to scale. But what struck me was the list of participants of the first cohort! Birb, Cardiomo, Zibra AI - it's all about AI and healthcare. It seems that these are the key areas for investment now 🧠💊
Viktor
Oh, these trendy startups and their trillions... 🙄 It's all like a soap bubble. Who guarantees that these investments will not turn into another financial crisis? It would be better to focus on the real sector of the economy.
Lucia
Viktor, I understand your skepticism, but the potential of innovation cannot be ignored! 💡 Look at the numbers: in 2023, the UK technology sector will exceed $1 trillion. This is a huge market of opportunities for our talented developers!
Olena
Lucia, absolutely agree! And another important point is the geographical proximity of Ukraine to the UK. This is an ideal springboard for our startups to enter the European market. Sophie, what other sectors besides AI and healthcare do you think could be promising?
Sophie
Olena, great question! 🌟 I would pay attention to fintech and green energy. The UK is famous for its financial sector, and green energy is a global trend. By the way, does anyone know if there are projects from these industries on the list of Investment Accelerator participants?
Markus
Sophie, yes I noticed Spendbase on the list - definitely a fintech. As for green energy, FortuneGuard seems to be working in this direction. This proves your point! 🌿💳 By the way, I was impressed that British funds prefer balanced growth models. That's a great sign for our startups, which are often more pragmatic than their American counterparts, right?