Understanding the Start-up and Innovator Visa Route Changes
The UK business immigration landscape underwent fundamental changes in 2023, with both the Start-up and Innovator visa routes being closed or replaced. At Connaught Law Limited, we provide expert guidance for existing visa holders navigating these transitions and new entrepreneurs seeking current business immigration routes.
The Start-up visa route officially closed to all new applications on 13 July 2023, marking the end of a pathway that had supported early-stage entrepreneurs since 2019. Simultaneously, the Innovator visa was replaced by the new Innovator Founder route on 13 April 2023, creating a single consolidated pathway for experienced business immigrants.
These changes reflect the government’s strategy to streamline business immigration while maintaining the UK’s attractiveness to genuine entrepreneurs. The closure of the Start-up visa follows similar closures of other business routes, including the Tier 1 Entrepreneur visa (March 2019) and the Sole Representative visa (April 2022), consolidating entrepreneurial pathways under the Innovator Founder framework.
The new Innovator Founder route combines the best features of both predecessor routes while offering improved settlement prospects and greater flexibility for visa holders. Historical data shows that well-prepared Start-up visa applications achieved over 95% approval rates between 2019 and 2020, demonstrating the route’s effectiveness for genuine entrepreneurs.
Table of Contents
Current Status of Start-up and Innovator Routes
Start-up Visa Route Closure
The Start-up visa route closed to new applicants on 13 July 2023, ending a four-year period during which it supported early-stage entrepreneurs without minimum investment requirements. The route closure followed comprehensive reviews by the Migration Advisory Committee that identified the need for more focused entrepreneurial immigration pathways.
Final Application Deadlines:
- Endorsement deadline: 13 April 2023 (for final applications)
- Application deadline: 12 July 2023 (with pre-13 April endorsements)
- Final closure: 13 July 2023 (no further applications accepted)
The closure aligns with broader immigration policy reforms that have consolidated entrepreneurial routes under more rigorous assessment frameworks. Policy makers cited the need for greater innovation focus and enhanced business viability requirements as key factors driving the transition to the Innovator Founder route.
Innovator Visa Replacement
The Innovator visa was replaced by the Innovator Founder route on 13 April 2023. Unlike the Start-up closure, this represents an evolution rather than termination, with existing Innovator holders automatically transitioning to the new framework when extending their visas.
Key Changes in the Transition:
- Removal of £50,000 minimum investment requirement
- Permission for secondary employment in skilled roles (RQF Level 3+)
- Reduced contact point requirements (2 meetings vs 3)
- Streamlined endorsement process with fewer approved bodies
- Enhanced settlement pathway with 3-year route to indefinite leave to remain
What Remains Available
Despite the route changes, existing visa holders retain clear pathways forward:
- Start-up holders: Can switch to Innovator Founder before 2-year visa expires
- Innovator holders: Extensions automatically become Innovator Founder visas
- Legacy endorsing bodies: Continue supporting existing cases for switching and settlement
- Dependant applications: Family members can continue joining or extending with main applicants
Switching from Start-up to Innovator Founder Visa
Eligibility for Start-up Holders
Start-up visa holders can switch to the Innovator Founder route using either “same business” or “new business” criteria. This flexibility allows entrepreneurs to continue their original ventures or pivot to new opportunities based on their experience in the UK market.
Same Business Switching Requirements:
- Previous permission under Start-up route (10 points)
- Business is active, trading, and sustainable with significant progress (20 points)
- Active involvement in day-to-day management and development (20 points)
- Fresh endorsement letter from legacy or new endorsing body
- Demonstration of business evolution and growth potential
Legacy Endorsing Body Support
Legacy endorsing bodies play a crucial role in supporting Start-up to Innovator Founder transitions. These organizations, which provided endorsements under the previous system, can continue supporting their existing endorsees through the switching process.
Legacy Body Capabilities:
- Endorse switches from Start-up to Innovator Founder for existing cases
- Support Innovator visa extensions (becoming Innovator Founder)
- Provide settlement endorsements for indefinite leave to remain applications
- Cannot endorse completely new applicants who weren’t previously supported
Application Timeline for Switching
Start-up visa holders should begin the switching process well before their 2-year visa expires. The process requires fresh endorsement and comprehensive documentation of business development since the original Start-up application.
Recommended Timeline:
- 6 months before expiry: Begin endorsement discussions with endorsing body
- 4 months before expiry: Submit endorsement application with updated business plan
- 3 months before expiry: Receive endorsement and prepare visa application
- 8 weeks before expiry: Submit Innovator Founder switching application
Innovator Founder Route: The Current Solution
Route Overview and Benefits
The Innovator Founder visa represents the UK’s current primary route for business immigration, designed to attract innovative entrepreneurs while providing a clear pathway to settlement. The route combines flexibility with robust assessment criteria to ensure genuine business establishment.
Key Route Features:
- No minimum investment: Focus on innovation rather than capital requirements
- Secondary employment: Can work in skilled roles outside business (RQF Level 3+)
- 3-year settlement: Faster route to indefinite leave to remain
- Unlimited extensions: No restriction on number of 3-year extensions
- Family inclusion: Partners and children can join with full work rights
Innovation, Viability, and Scalability Requirements
The Innovator Founder route maintains rigorous standards for business assessment, requiring demonstration of innovation, viability, and scalability. These criteria ensure that endorsed businesses contribute meaningfully to the UK economy.
Innovation Criteria:
- Original business idea different from existing market offerings
- Clear competitive advantage and unique selling proposition
- Innovation must be carried out directly by the applicant (no outsourcing)
- Demonstrable market gap or improvement over existing solutions
Viability and Scalability Assessment:
- Sustainable business model with clear revenue generation
- Evidence of market demand and customer validation
- Growth potential including job creation and market expansion
- Realistic financial projections and scaling strategies
Current Endorsing Bodies
The Innovator Founder route operates with a streamlined list of approved endorsing bodies that assess business proposals and provide ongoing monitoring throughout the visa period.
Current Endorsing Bodies:
- TechNation: Focus on digital technology and deep tech innovations
- Envestors: Support for high-growth potential businesses across sectors
- Global Entrepreneurs Programme (GEP): Government programme for internationally mobile tech entrepreneurs (invitation only)
- UKES: Consortium of UK businesses bringing combined expertise to business assessment
- Innovator International: Supporting international entrepreneurs expanding UK interests
Costs and Financial Requirements
The Innovator Founder route requires specific financial commitments for endorsement, application, and ongoing compliance. Understanding these costs is essential for proper planning.
Current Application Costs (July 2025):
- Visa application: £1,274 (outside UK) or £1,590 (switching inside UK)
- Endorsement fee: £1,000 paid directly to endorsing body
- Contact meetings: £500 per meeting (minimum 2 required during visa period)
- Healthcare surcharge: £624 per person per year
- Maintenance funds: £1,270 held for 28 consecutive days before application
Business Plan Requirements and Success Strategies
Comprehensive Business Plan Development
Success in the Innovator Founder route depends heavily on presenting a compelling business plan that demonstrates innovation, market understanding, and realistic growth potential. The plan must convince both the endorsing body and, ultimately, the Home Office of the venture’s viability.
Essential Business Plan Components:
- Executive summary highlighting innovation and market opportunity
- Detailed market analysis and competitive landscape assessment
- Clear value proposition and unique selling points
- Comprehensive financial projections and funding requirements
- Operational plan including team structure and key milestones
- Growth strategy and scaling roadmap
- Risk assessment and mitigation strategies
Market Research and Validation
Endorsing bodies expect robust market research demonstrating genuine understanding of the UK business environment and customer needs. This research should support all claims about market opportunity and competitive advantage.
Required Research Elements:
- Target market size and growth projections
- Customer segments and buyer personas
- Competitor analysis and differentiation strategy
- Market entry strategy and pricing model
- Evidence of customer demand or early validation
Demonstrating Entrepreneurial Experience
While the route is open to both experienced entrepreneurs and first-time founders, applicants must demonstrate relevant skills, experience, or qualifications that support their ability to execute the business plan successfully.
Contact Point Meetings and Ongoing Compliance
Mandatory Contact Point Requirements
Innovator Founder visa holders must attend at least two contact point meetings with their endorsing body during their 3-year visa period. These meetings serve as checkpoints to assess business progress and ensure ongoing compliance with visa conditions.
Contact Meeting Schedule:
- First meeting: Typically at 12-month mark after visa grant
- Second meeting: Usually at 24-month mark before extension or settlement
- Meeting cost: £500 per session paid directly to endorsing body
- Failure consequences: Missing meetings may result in visa curtailment
Business Progress Assessment
Contact point meetings evaluate whether visa holders are making reasonable progress against their original business plan or demonstrating successful pivot to viable alternatives. The assessment considers both quantitative metrics and qualitative business development.
Assessment Criteria:
- Business establishment and trading activity
- Revenue generation and customer acquisition
- Team building and operational development
- Market validation and product development progress
- Achievement of key milestones from original business plan
Settlement and Long-term Immigration Planning
Three-Year Settlement Pathway
One of the most attractive features of the Innovator Founder route is the accelerated settlement timeline. Unlike many other business visa categories, successful Innovator Founders can apply for indefinite leave to remain after just three years of continuous residence.
Settlement Requirements:
- Three years continuous residence as Innovator Founder
- Endorsement letter confirming significant business achievements
- Companies House registration as director or member
- Active, trading business sustainable for at least 12 months
- Key role in day-to-day management and development
- English language proficiency at B2 level
- Life in the UK test completion
Family Settlement Opportunities
Innovator Founder dependants follow different settlement timelines, with partners and children typically eligible for indefinite leave to remain after five years rather than three. However, they benefit from unrestricted work and study rights throughout their stay.
Extension vs Settlement Decision
At the three-year mark, Innovator Founders can choose between extending their visa for another three years or applying for settlement. This decision depends on business performance, personal circumstances, and long-term immigration objectives.
Alternative Routes and Contingency Planning
Self-Sponsorship Through Skilled Worker Route
For entrepreneurs whose businesses don’t qualify for Innovator Founder endorsement, self-sponsorship through the Skilled Worker route offers an alternative pathway. This involves establishing a UK company, obtaining a sponsor licence, and sponsoring oneself for a Skilled Worker visa.
Self-Sponsorship Requirements:
- Establish genuine UK business with real trading activity
- Obtain sponsor licence with Home Office compliance systems
- Create genuine job role meeting skill and salary thresholds
- Demonstrate business need for the sponsored position
- Maintain ongoing sponsor compliance obligations
Global Talent Route for Exceptional Individuals
The Global Talent visa provides an excellent alternative for entrepreneurs with exceptional ability or promise in digital technology, science, engineering, humanities, medicine, or arts. This premier route offers greater flexibility and faster settlement options for recognized leaders.
Global Talent Route Benefits:
- Three-year settlement pathway for exceptional talent holders
- No sponsor requirement and unlimited work flexibility
- Endorsement through approved bodies like Tech Nation for digital technology
- Scale-up visa available for high-growth businesses with 20% annual growth
- High Potential Individual route for recent graduates from top global universities
UK Expansion Worker Route
For overseas businesses establishing UK operations, the UK Expansion Worker route under Global Business Mobility provides an alternative to traditional business immigration routes. This sponsored route replaced the closed Sole Representative visa.
UK Expansion Worker Features:
- Allows up to five workers to establish UK operations simultaneously
- Sponsored route requiring sponsor licence and Certificates of Sponsorship
- Typically granted for up to two years for business establishment
- Direct replacement for the closed Sole Representative visa route
Legal Considerations and Professional Support
Complex Immigration Planning
The transition from Start-up and Innovator routes to the Innovator Founder system requires careful planning, particularly for existing visa holders with established businesses. Professional legal guidance ensures optimal strategy selection and successful application outcomes.
Key Legal Considerations:
- Timing of switching applications to avoid visa gaps
- Business structure optimization for immigration compliance
- Employment law compliance for secondary work activities
- Tax planning for business establishment and development
- Contingency planning for endorsement challenges
Documentation and Evidence Management
Success in business immigration requires meticulous documentation from the initial endorsement application through to settlement. Professional guidance ensures comprehensive evidence gathering and presentation that maximizes approval prospects.
How Connaught Law Limited Can Assist
Comprehensive Business Immigration Services
At Connaught Law Limited, our experienced immigration solicitors provide end-to-end support for business immigration clients, from initial route assessment through to successful settlement. We understand the challenges created by recent route changes and develop tailored strategies for each client’s unique circumstances.
Our Start-up and Innovator Transition Services:
- Strategic assessment of switching options for existing visa holders
- Business plan development and endorsement application support
- Visa switching applications and timeline management
- Ongoing compliance monitoring and contact meeting preparation
- Settlement application planning and submission
Innovator Founder Route Expertise
Our team has extensive experience with the new Innovator Founder route, including successful endorsement applications and business development strategies that meet immigration requirements while maximizing commercial potential.
Innovator Founder Support Services:
- Route eligibility assessment and business concept evaluation
- Endorsing body selection and application strategy
- Comprehensive business plan development with immigration focus
- Application preparation and Home Office submission
- Alternative route consultation if Innovator Founder unsuitable
Route Closure Expertise
Our specialized knowledge of closed business immigration routes enables us to provide strategic guidance for affected clients:
Our Route Closure Services:
- Comprehensive guidance on Tier 1 Entrepreneur settlement applications before April 2025 deadline
- Strategic advice on UK Expansion Worker alternatives for overseas business establishment
- Full range of business immigration services including Global Talent applications
- Alternative route assessment when Innovator Founder endorsement proves challenging
- Analysis of emerging routes including potential investor visa reforms
Alternative Route Planning
When the Innovator Founder route isn’t suitable, we provide comprehensive consultation on alternative business immigration options, including self-sponsorship strategies, Global Talent applications, and other specialized routes.