The Innovator Founder Visa is a popular route for entrepreneurs who want to establish a business in the United Kingdom. A significant shift occurred on 13 April 2023, when the UK government announced that applicants for this visa no longer needed to meet the £50,000 minimum investment requirement. However, this change has raised important questions for applicants: Is proof of investment still necessary for the Innovator Founder Visa?

In this article, we will explore the requirements surrounding investment for the Innovator Founder Visa and examine what role endorsing bodies play in assessing the financial capacity of applicants.

Key Changes to the Innovator Founder Visa

Before April 2023, applicants for the Innovator Visa had to demonstrate access to at least £50,000 in investment funds, which would be used to start and sustain their business in the UK. This condition made the visa difficult for some entrepreneurs, particularly those without significant capital.

However, following the April 2023 changes, the Innovator Founder Visa no longer mandates a specific investment amount. Instead, the focus is now on demonstrating access to sufficient funds for the business’s development. The emphasis has shifted to ensuring that applicants have adequate financial backing to support their business operations and growth for the first few years.

Is Proof of Investment Still Necessary?

Although there is no longer a set £50,000 requirement, applicants must still provide evidence of having enough funds to establish and grow their business. Importantly, this proof needs to be submitted to an endorsing body, which is a crucial part of the Innovator Founder Visa process.

Endorsing bodies are organisations recognised by the UK Home Office that assess an applicant’s business idea and the applicant’s ability to follow through with their plans. These bodies play a significant role in determining whether a business proposal is viable and whether the applicant has sufficient resources to sustain the business.

While there is no longer a prescribed minimum amount of investment, applicants must still demonstrate access to funds that are sufficient for the first few years of the business’s operation. The recommended amount for the first three years to achieve Indefinite Leave to Remain (ILR) is between £150,000 and £400,000. This amount reflects the likely financial commitment needed to operate a successful business, covering key expenses such as staffing, product development, and operational costs. The estimated cost depends on many factors. When you work with us, we elaborate on the components.

Role of Endorsing Bodies for Innovator Visa Applications

To apply for an Innovator Founder Visa, you must secure endorsement from an approved endorsing body. These organisations evaluate your business idea, assess your financial plan, and verify that you have the resources to make your business succeed in the UK market.

Endorsing bodies are responsible for ensuring that applicants meet the visa’s requirements. They are required to assess the business plan, including:

1. Financial Capacity: Demonstrating that you have sufficient funds to support your business for at least the first three years, without relying on public funds.
2. Business Viability: Ensuring that your business idea is innovative, scalable, and has the potential to succeed in the UK.
3. Source of Funds: You must show that the funds you plan to invest in the business come from a legitimate and verifiable source.

These bodies provide endorsements for Innovator Visa applicants based on their assessment of the business idea and the applicant’s ability to succeed.

In summary, while the Innovator Founder Visa UK no longer mandates a specific minimum investment, applicants must still prove that they have sufficient funds to support their business. This is where endorsing bodies play a vital role. They assess whether your business is viable and whether you have access to the necessary resources to establish and grow your business in the UK.

While you may not need to show the £50,000 minimum investment previously required, providing proof of sufficient funds remains a key element of the application process. This ensures that your business is financially sustainable and has the best chance of success in the competitive UK market.

If you’re considering applying for the Innovator Founder Visa, it’s crucial to work with an accredited endorsing body that can guide you through the process and assess your financial and business plans. Ultimately, having a solid financial foundation will help you secure the endorsement you need to embark on your entrepreneurial journey in the UK.