Why Are UK Growth Companies Choosing the US Over London?

It has provided businesses with access to capital, global investors and a well-established public market environment. Yet over recent years, concerns have grown around the number of UK companies choosing to list overseas rather than on the London Stock Exchange.

From technology businesses to high-growth scale-ups, an increasing number of founders appear to be looking across the Atlantic when considering their long-term growth plans.

This has prompted an important question:

Is London becoming less attractive for ambitious growth companies?

A Growing Trend

The debate intensified following the decision by British chip designer Arm to list in New York rather than London in 2023.

Arm was widely seen as one of the UK's most successful technology businesses, and many viewed its decision as a significant setback for London's public markets.

More recently, fintech giant Wise announced plans to move its primary listing to the United States, arguing that doing so would provide greater access to investors and improve liquidity for shareholders.

While not every growth company is planning to leave London, these examples have fuelled concerns that the UK is struggling to retain some of its most ambitious businesses as they mature.

Why Are Founders Looking Elsewhere?

For many founders, the decision comes down to access to capital.

The US market offers a larger pool of institutional investors, particularly those focused on technology and high-growth businesses. Companies often believe they can achieve higher valuations and attract greater analyst coverage by listing in New York rather than London.

There is also the issue of liquidity.

US exchanges generally see higher trading volumes, which can make shares more attractive to both investors and company management teams.

For businesses planning significant international expansion, particularly into North America, a US listing can also help increase visibility amongst customers, partners and investors.

What Does This Mean for the UK?

The concern is not simply about where a company chooses to list.

Successful public companies create jobs, attract investment and help strengthen the wider business ecosystem. When high-growth businesses choose overseas markets, questions inevitably arise about whether the UK is doing enough to support ambitious companies throughout their growth journey.

A strong public market plays an important role in the investment cycle. It provides investors with exit opportunities and encourages further capital to flow into earlier-stage businesses.

If fewer growth companies choose London, it could have implications for the broader investment landscape over time.

London Still Has Significant Strengths

Despite the headlines, London remains one of the most important financial centres in the world.

The city continues to attract international capital, professional expertise and entrepreneurial talent. The UK also benefits from a strong network of angel investors, venture capital firms and growth-focused funding programmes that support businesses long before they reach the public markets.

The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) remain important parts of that ecosystem, helping early-stage companies access the funding needed to scale.

For many businesses, London continues to offer a compelling environment in which to grow.

Can London Become More Competitive?

Recognising the challenge, policymakers and regulators have introduced a series of reforms designed to make UK public markets more attractive.

The aim is to simplify listing requirements, improve flexibility for founders and encourage more growth companies to consider London when they eventually reach IPO stage.

Whether these changes will be enough remains to be seen.

Competition between global financial centres is intense, and founders have more choice than ever when deciding where to raise capital and build their businesses.

Final Thoughts

The discussion surrounding UK listings is about more than individual companies.

It reflects a broader debate about how the UK supports innovation, entrepreneurship and business growth in an increasingly competitive global economy.

London remains a world-class financial centre, but the challenge is clear. As ambitious UK businesses continue to scale, the market must ensure it remains an attractive destination for founders, investors and growth companies alike.

The businesses being built today will shape the future of the UK economy. Ensuring they see London as a place to grow, invest and ultimately list should remain a priority for everyone involved in the startup and investment ecosystem.