Spreading Californian tech vibe across the UK
In a provocative call to action aimed at revitalizing the United Kingdom's technology scene, venture capitalist Sean Kohli advocates for the introduction of a more California-style approach to entrepreneurship and innovation. Kohli, who now chairs the Young Entrepreneurs Forum, cited concerns that the UK has been falling behind its European neighbors and Silicon Valley in the race to master emerging technologies such as AI.
Born and raised in the UK, Kohli first embraced the entrepreneurial spirit during his time in the United States, studying English but quickly becoming engrossed in the booming tech ecosystem surrounding Stanford and Silicon Valley. There, he found himself joining a hacker house, launching an AI start-up, and eventually founding a venture fund—opportunities he believes wouldn't have existed had he remained in Britain.
Speaking about why he believes a change is needed, Kohli pointed to a perceived disparity in the ecosystem that enables ideas to be brought to life. While British talent is world-class, he argued that opportunities for it to flourish are lacking compared to the US. He aspires to replicate his Silicon Valley experience within the UK, where ventures get built, funded, and scaled—all while risk is rewarded and regulation takes a step back.
The Global Entrepreneurship Monitor's annual report on entrepreneurial environments has uncovered declines in the UK's rankings for its ecosystem, with concerns over education, access to funding for entrepreneurs, and the slow pace of innovation weighing heavily on the nation. Data also revealed that as of 2022, only 36% of UK firms were innovation-active—a fall from 45% in the previous cycle. Meanwhile, the UK's share of global manufacturing exports has halved since 2000, and the country is missing out on £15bn a year in life sciences due to falling inward investment and a decrease in clinical trials.
But it's not just the hard numbers that suggest stagnation. Soft cultural barriers to entrepreneurship also impede progress. Kohli pointed to the misconception that starting a business requires substantial capital, when the actual average is closer to £5,000. Shifting public perception about starting and scaling businesses and creating a more supportive ecosystem will be essential to building a thriving tech scene in the UK.
In response to this challenge, Kohli and his colleagues at the Young Entrepreneurs Forum are encouraging change within the current system and advocating for a more entrepreneurial-friendly mindset. They believe a comprehensive approach is necessary to compete with global tech giants, blending elements of the UK's pragmatic approach with the bold ambition of Silicon Valley while upholding the nation's unique cultural strengths.
The process demands urgency, as AI and other advanced technologies prepare to add $4.4 trillion to global GDP, according to McKinsey. Britain risks being left behind if it does not act swiftly and effectively to address its shortcomings in the tech sector. If the country can overcome its challenges, Kohli is optimistic about its potential for global tech leadership.
As Labour pursues a goal of embracing the "white heat of a new technological revolution," led by Prime Minister Keir Starmer, much will depend on translating those words into tangible policy. Strategies such as tax reform, refining funding mechanisms, developing regional innovation hubs, and leveraging the UK's scientific strengths will be key to competing with Silicon Valley and global tech leaders in the years ahead.
- Sean Kohli, a venture capitalist and chair of the Young Entrepreneurs Forum, suggests revitalizing the UK's technology scene by adopting a more California-style approach, given concerns about falling behind in emerging technology fields such as AI.
- Kohli, who founded a venture fund and embraced the entrepreneurial spirit in the US, touts the lack of such opportunities in the UK as an indicator of a missed chance for fostering homegrown tech ventures.
- The Global Entrepreneurship Monitor's annual report indicates declines in the UK's rankings for its entrepreneurial ecosystem, due to concerns over education, funding, innovation, and a slow pace of export growth in manufacturing and life sciences.
- Kohli and the Young Entrepreneurs Forum advocate for a more comprehensive approach, blending the UK's pragmatic approach with the bold ambition of Silicon Valley, while addressing cultural barriers, tax reform, funding mechanisms, developing regional innovation hubs, and leveraging scientific strengths to compete and lead in the global tech space.
