The student visa blocks researchers from building UK companies
In the UK, ~40% of masters and PhDs are on student visas. This prohibits them from conducting ‘business activity’ - meaning they could have a world-changing idea, but they cannot test it or incorporate here.
What about the Innovator Founder visa?
Students more than 24 months into their studies can switch to the Innovator Founder visa. This excludes most masters students and early PhDs. For those eligible, applying costs £1,000, plus £500 check-ins with the endorsing body. That is a heavy burden on a student stipend.
Even if you can afford it, the process costs time. The application requires a business plan with three-year cash flow forecasts before you have tested the idea with customers. That is needless friction for someone simply trying to validate an idea.
48,452 STEM postgraduate researchers on student visas, have explored startup ideas (7,268), could have got LOIs/pilots/raised funding (e.g. will need to incorporate).