New Virgin Media O2 Report Outlines Bold Plan to Secure Britain’s Future as a Startup Powerhouse
Despite two-thirds (64%) of startups planning to increase investment and 85% wanting to stay in Britain, one in five of the UK’s fastest growing companies could leave the UK within the next three years without action, a major new report from Virgin Media O2 has warned.
The findings form part of a new report, Growth Signals: What the UK’s fastest-growing companies reveal about unlocking economic growth. Based on insights from more than 2,000 companies, including those working at the forefront of industries like AI and quantum computing, it offers a roadmap for government on how best to retain and nurture UK startups.
Virgin Media O2’s analysis reveals that in 2024 alone, £100 billion was wiped from UK stock markets, as exits outpaced IPOs and listings nearly five to one.
While the vast majority of fast-growing startups (85%) would like to keep their business base in the UK, regulatory burdens (58%), political uncertainty (54%) and difficulties accessing funding (52%) are holding them back.
Twice as many startups see the US (68%) as a better place to grow their business compared to the UK (35%), which lags other major markets including Singapore (44%) and the EU (38%).
However encouragingly, there remains a clear belief in Britain. Nearly half (47%) of startups remain optimistic about the country’s long-term economic prospects, citing high-quality research institutions (65%), international business environment (48%) and strong legal and regulatory frameworks (46%) as key strengths.
To capitalise on this, the report identifies five key areas businesses believe government should focus on in order to ensure the UK can thrive as a global hub for innovation and technology:
- Agile regulation – responsive frameworks that keep pace with emerging technologies.
- Capital incentives – patient funding to bridge the gap from idea to export.
- Future-proofed digital networks – innovation now demands low-latency, high-capacity infrastructure.
- AI-ready talent – a diverse, adaptable workforce that can power digital transformation.
- Long-term certainty – a clear industrial vision that encourages investment and strategic risk-taking.
Lutz Schüler, CEO of Virgin Media O2, said: “Bold and innovative businesses are created here in Britain because it cultivates home-grown talent with the ambition to match. But too many of the fastest growing companies can’t see a route to scale in the UK and are now looking to prosper abroad.
“With the country at an inflexion point, the time to act is now. Digital connectivity is vital to enabling innovation, and Virgin Media O2 is investing billions in next-generation networks, but that’s only part of the solution. We need agile regulation, patient capital, a strong talent pipeline, and long-term policy stability to unlock growth for the long term.
“With an AI powered economic revolution already underway, the question is now whether Britain leads or follows. Decline is not inevitable. This is a country that can maintain its place on the world economic stage and win if it fixes the frictions founders face every day.”
