A coalition of UK investors — including Entrepreneurs First, Antler, and Seedcamp — is urging the government to introduce a US-style regulatory exemption for small VC funds. They argue the current UK regulatory regime is too burdensome and costly, stifling a new generation of emerging fund managers. The group says simplifying rules could significantly reduce launch costs and administrative barriers, enabling more diverse and innovative funds to enter the market.

Proponents point to the U.S. model, where lighter-touch regulation for smaller funds has helped foster a vibrant early-stage ecosystem. They warn that without reform, the UK risks falling behind in attracting and retaining next-generation VC talent. The call comes amid growing concern over the high cost and complexity of launching a fund in the UK, which can deter first-time managers.

Advocates believe a tailored exemption would unlock greater entrepreneurship and investment in early-stage startups across the country.