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Scaling Stateside: How UK Startups Can Grow in the US Without Losing Their UK Identity

Scaling Stateside: How UK Startups Can Grow in the US Without Losing Their UK Identity

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The UK is now regarded as a global leader in innovation, offering one of the most dynamic startup ecosystems in the world valued at over $1.2 trillion. It leads Europe in tech investment and is powered by world-class universities, cutting-edge research and a culture that nurtures bold ideas. In 2024 alone, UK university spinouts attracted ÂŁ2.6 billion in equity funding—up 38% year-on-year. More than 200 spinouts have now exited since 2015, with IPOs such as Cambridge University spinout, Darktrace, highlighting the progress that has been made.  

Early-stage capital is plentiful, with seed rounds making up 32% of VC deals and typical raises of ÂŁ1–3 million, supported by generous SEIS and EIS schemes. Yet, when founders look to scale, the contrast with the US is stark: median seed rounds hover around $3 million, with many outliers at $5–7 million and valuations nearly double those in the UK. Add to that, a VC market deploying over $170 billion of capital annually compared to ÂŁ7.8bn in the UK and it is clear to see why many founders look across the Atlantic for their scaling round. The opportunity is undeniable, but so is the question: can you capture US-scale without losing the DNA that made you successful in the UK? 

What Gets Lost in Translation

Two Countries Separated by a Common Language

Expanding from the UK to the US is more than a geographic move—it’s a shift in mindset, pace and expectations. Where a British founder might conservatively say “We’re fairly pleased with our growth,” an American counterpart might say “Our growth has been phenomenal!” to the same numbers. This isn’t just style; it affects how your message is received. UK entrepreneurs sometimes find US customers and investors misinterpret their reserved approach as lack of enthusiasm or confidence.

In Silicon Valley, failing fast is a badge of learning; in the UK, founders may still feel pressure to avoid failure or hype. This can result in UK startups under-selling themselves in US pitches. Recognizing and bridging these soft-skill gaps is critical.

Pro Tip: Successful founders often bring in US advisors or coaches to train them on local business etiquette and communication. The goal is not to abandon your authenticity, but to ensure your intent shines through clearly in the new context. 

Sustainable Scaling Vs Blitzscaling

UK startups entering the US frequently encounter pressure to “go bigger, faster.” For instance, a UK founder used to raising £3M and doubling revenue might get challenged why they aren’t raising $30M to grow ten-fold. Growth targets and exit timelines are accelerated. In Q1 2025 alone, US startups raised $85.5 B (versus $4.9 B in the UK), reflecting how much more fuel is on the fire.

US VCs expect a clear path to a major exit (IPO or large acquisition) usually within 5-7 years, whereas UK investors might be content with a solid mid-size exit or longer horizon. Success doesn’t mean abandoning prudent management; it means combining UK efficiency with US boldness. Founders who resist all US investor input may struggle to raise follow-on funding.

Pro Tip: Reframe your fundraising narrative. Articulate a credible plan for exponential growth and show willingness to use capital as a tool for speed.

Talent – New Game, New Rules

Hiring in the US is a different ballgame—fast, fierce and expensive. Salaries can run 50% to 100% higher than in the UK, and candidates expect more: bigger equity packages, comprehensive health benefits and perks like 401(k) matches. Negotiations are upfront and assertive, and retention is a challenge. Job-hopping is common in the US, unlike the traditionally higher loyalty seen in the UK.

Culture matters, too. US teams thrive on clear KPIs, frequent feedback and decisive leadership. UK managers often need to dial up assertiveness and adopt a performance-driven approach to keep pace.

For UK startups, success means adapting—fast. That could mean revisiting compensation strategies, speeding up hiring processes and bringing in US-savvy recruiters or HR leaders. Done right, the payoff is huge: a seasoned US VP of Sales can supercharge growth, while blending UK frugality with US scale experience creates a culture that wins on both sides of the Atlantic.

A Balancing Act Worth Mastering

Expanding to the US is a huge opportunity, but it comes with real risks if you lose what made you successful in the UK. The challenge is balancing adaptation with authenticity. Winning in America isn’t about starting over; it’s about scaling smart while preserving your core strengths.

Dual Leadership for Local Agility

Many UK firms send a founder or senior exec to the US while keeping R&D in the UK. Mimecast did this in 2011 when CEO Peter Bauer moved to Boston, enabling rapid US growth while London maintained product excellence. This model ensures quick local decision-making without losing strategic oversight. It also signals commitment to US stakeholders, which is critical for credibility with investors and customers.

If founders can’t relocate, appoint a US-based GM with autonomy to act fast. Experienced US executives bring networks and cultural fluency that accelerate traction. However, ensure strong communication and shared KPIs to avoid misalignment. Many UK SaaS firms use this approach to scale sales and customer success quickly.

Structure for Success

A Delaware Flip is often essential for early stage startups raising US VC funds. Done right, it preserves UK tax benefits like SEIS/EIS and signals commitment without losing control. Over 60% of Fortune 500 are Delaware corporations, making it a familiar structure for investors. Engage credible legal and tax advisors early to avoid costly mistakes. Balanced board representation post-flip ensures strategic alignment.

Recalibrate, Don’t Reinvent

Keep your core value proposition but localize for US norms. Wise entered the US by tweaking compliance and UX (User Experience) while retaining its low-cost transfer mission. Pilot in one state or region before scaling nationwide. Localize marketing campaigns while maintaining a single global product codebase. This avoids fragmentation and leverages your UK strengths as a differentiator.

Mind the Knowledge Gap

Scaling isn’t merely an on/off switch where one day you’re UK-only, next day you’re in the US. It’s a journey. Use bridges like dual leadership, gradual market entry, pilot customers and cultural exchange to traverse the gap. This staged approach lets you learn and adjust continuously, reducing the risk of “losing yourself” in one big jump.

There’s more support than ever for UK companies internationalizing. From legal, tax experts and venture firms that operate on both sides, to mentorship networks and government initiatives, you can get guidance to avoid known pitfalls.

UK startups bring to the table a rich mix of innovation, focus and often a bit of underdog tenacity. The US can add jet fuel to those qualities. If approached thoughtfully, the result is a company that operates on a global stage – a company that can “speak American” in the boardroom yet still dream in British at heart. 

At Frazier & Deeter, we help ambitious UK founders navigate the complexities of US expansion—structuring for success, optimizing tax strategies and building the right financial foundations for growth. Whether you’re planning a Delaware flip, raising US capital or hiring your first American team, our experts bridge the gap so you can scale confidently while preserving what makes your business unique.

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Contributors

Malcolm Joy, Managing Partner, Frazier & Deeter UK

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