The US remains the world’s most powerful venture capital (VC) market, offering scale and larger deal sizes than the UK. For UK founders looking to Series B and later-stage growth, understanding this fundamentally different investment culture is essential. While the UK offers strong early-stage support, the transition to scale still drives many founders to look west, where risk appetite, fund maturity and exit opportunities are higher, in an exponentially larger market.

Why the US Holds Appeal

UK startups have raised $17.3 billion in VC in the first three quarters of 2025, a peak we haven’t seen since 2022. Seed deals surged, with the companies securing funding climbing by 30%. Paired with strong incentives and governmental support, it is a recipe for early-stage strength, and has made the UK the world’s third-largest VC market.

But the difficulty rises when scaling beyond Series A. The US is the world’s dominant VC market, accounting for 163 high-value VC deals and over $80 billion in investment value in the first half of 2025, or 60% of deal funding and 80% of high-value VC deals. It also contains seven of the world’s top ten tech hubs, making it particularly appealing for cutting-edge industries.

This creates an interesting dichotomy: While the UK provides a supportive initial market, the US is the logical launchpad for further growth as they seek scale from Series B onward.

How the Investment Landscape Has Shifted

Between 2021 and 2023, the US market saw rapid capital deployment and high valuations. Today, however, we see tighter investor discipline, and the market will remain selective in 2026, emphasising:

Sector Depth, Not Breadth

AI, data infrastructure, biotech, and platform-driven technologies have the bulk of investment attention. Roughly one-third of global VC in 2024 went to AI, an 80% increase on 2023, and by mid-2025, AI deals matched the entirety of 2024 ($104.3 billion), indicating an accelerating trend. Mega-rounds and elite players dominate, with OpenAI seeing historic raises ($40 billion in early 2025 alone), and repeated $10 billion and multi-billion rounds creating a top tier of near-trillion aggregate private AI valuations.

Governance and Reporting Maturity

Structured reporting, clean financials and clear ownership are expected earlier in the investment cycle, with many of 2021-22’s unicorns struggling to justify valuations. Down rounds (raising new funding at a lower valuation) became common in 2023–25 as reality caught up with inflated prices.

Fewer Deals, Larger Cheques

For UK investors, deal activity fell, with Beauhurst tracking a 9.5% year-on-year decline. Likewise, in the US, deal volumes are below the 2021 peak, but median deal sizes, especially in the later stage, have risen, primarily through capital concentration in fewer, but larger, deals. Considering deals with non-traditional investors (NTIs) and corporate VC participation, 2025’s deal count was 3073, down from 2021’s 7,851, while median deal value rose to $115 million, up from $63 million, while CVC participation in Series D+ deals saw a median valuation of $1.35 billion. Again, AI deals attract premium valuations and larger rounds. This is a sign of a two-stage market, with early funding active, and mid-to-late companies seeing more condensed investment rounds. The venture market has shifted from “growth at all costs” to fundamentals first as we enter 2026.

We can also expect to see increased IPO market momentum, with more listings in 2026. With interest rates easing, inflation stabilising and public equity markets recovering from volatility, there is a more favourable environment for companies to go public. 2025 saw a resurgence in IPO activity, with volumes up 20%-50% and proceeds up 84%.Many mature tech and AI-driven firms delayed IPOs during 2025 due to market volatility and regulatory uncertainty. These companies now form a deep pipeline for 2026, especially in AI infrastructure, fintech, crypto and enterprise SaaS.

Overall, this creates a more cautious and focused investment climate that UK founders must align with to attract US investment.

How US Investor Expectations Have Changed with this Market Shift

As the US venture landscape becomes more selective and fundamentals-driven, investor expectations change with it. Understanding these structural and cultural differences, and how they reflect the new market, will help UK founders capitalise on the opportunities US investment can offer.

A Tighter Market Means More Emphasis on Scale and Fund Maturity

While UK funds perform well, they don’t match the top US funds, with the US’s greater maturity leading to larger fund availability. The result is well-funded companies able to both scale more and enjoy more exit opportunities with higher returns and greater VC capital allocation from institutional investors.

The Shift from “Growth at All Costs” Means a Higher Bar for Risk-Adjusted Judgement

US investors still, broadly speaking, have a more optimistic outlook that correlates with a higher risk appetite. In a more disciplined market, however, this comes with more assertive deal terms and targeted due diligence. Larger, faster investment amounts and quicker decision-making are still the norm, but scrutiny has increased, with investors prioritising clean financials and realistic, well-governed valuations.

Capital Concentration Means Stronger Preference for Founder-Led Engagement

The US investment community, in general, frowns upon using advisors or brokers to raise early-stage capital. Instead, US VC companies value being approached by founders or CEOs. The current emphasis on founder quality and capability amplifies this.

US Market Dominance Raises Expectations of Local Strategy and Faster Realisation

With the US economy valued at $30.486 trillion, vs. the UK’s ~$3.82 billion/£2.884 billion, US investors favour ventures with a US foothold, and a strong strategy for local market growth or local partnerships. Early relationship building should be a priority.

Investor expectations after an investment round also differ. With US companies dominating the stock market capitalization (50.2%),a massive domestic economy, and lower expansion barriers, US investors expect quicker realization on their investment, especially in a cycle where exits and IPO windows are gradually reopening.

The Rise of Ex-Operator Investors Means Higher Expectations

US fund managers do not typically stem from pure financial backgrounds, with many being ex-startup founders, or those with prior experience with high-growth companies and successful exits. In a market increasingly driven by sector depth, especially AI, biotech, and data infrastructure, this drives more attention to company details than in the UK.

To meet the US investor mindset, UK founders must ensure their founder narratives must align with clear industry trends and potential scalability in the US market.

Aligning the company’s structure with structures familiar to US investors can address many of the investor differences we’ve noted, making negotiations and legalities simpler, and better demonstrating value and traction with US markets. The “Delaware Flip”, where a new US corporation exchanges its UK shares for the new entity, is a commonly used strategy. This strategy offers US investors:

• Clean governance and familiar shareholder rights
• Compatibility with US fundraising norms
• Access to QSBS tax treatments for investors
• De-risking of cross-border accounting and tax complexity

Not only will investors expect audit-ready books and forecasting at US data standards in 2026, but they will also expect to see US market appeal for the product or services, with a credible go-to-market strategy.

Align Culture and Communications to Win in 2026

Companies most likely to thrive in 2026 and beyond will be those that align structurally, culturally, and operationally with US norms, and are ready for rigorous financial and technical validation, backed by deep market understanding.

By understanding these investor expectations now, founders can better position themselves for a strong raise and smooth expansion, as well as long-term success in the world’s largest, most competitive, venture market.

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