Northern tech firms consider moves to US as funding frustrations mount in the UK

• By Rachael Hesno​ | April 22, 2025​

Frustrated by the ‘risk averse’ nature of some UK investors, a number of Northern founders appear to be setting their sights across the Atlantic thanks to the temptation of bigger markets, wider talent pools and deeper investor pockets.

Despite Trump’s latest tariff frenzy recently sending shockwaves across the stock markets, is this the start of a ‘Northern brain drain’ overseas or simply a case of savvy entrepreneurs chasing the capital, talent and infrastructure needed to fuel their ambitious visions? 
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As part of Prolific North’s GRAFT tech series to spotlight the triumphs, tensions and untapped opportunities across the North’s tech ecosystem, we’ve taken a deeper look at why some founders are considering moving to the US.

Anita Frost, founder of children’s entertainment platform Green Bean Studios, couldn’t agree more. 
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“We recently were approached by a launchpad in Denver and they offered us such a great opportunity. I would love to remain a Northern business that’s founded and invested in here but ultimately, the US is making it more attractive.”
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While she believes there is plenty of support for start-ups across the North thanks to R&D grants and the government’s EIS or SEIS schemes, there is “no playing field” for companies that want to grow.

READ MORE: From Pet Sounds to Hollywood Hills – meet the unconventional founder headlining GRAFT
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“It’s about us scaling from where we are to move forward, and there isn’t an approach for that in the UK. At pre-seed, investors want sales to be in the millions. How are you going to get a million sales with no investment? It’s silly. 

“Yet some will invest two or three million in a tech idea that’s got no sales attached to it. It doesn’t really make sense at all.”

Green Bean Studios recently launched in the US after securing IP in a lengthy two-year process. 
With organic sales already flowing in and a better “risk appetite” mentality from investors, she admits moving to the US is something she has considered despite securing a number of grants from the likes of Innovate UK.

“We need a policy change for investment. There’s a lack of investors’ appetite here. Why? Because investing is not attractive, and it’s only attractive in some sectors.”

“I don’t think the landscape, investment wise, is friendly to young founders”
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She’s not alone in that view. Harry Panter, the co-founder behind fast-growing student living platform Housr, says the US is where the future of the market is for his business. READ IN FULL