The Innovator Founder Visa: What It Is & How Recent Home Office Changes Empower Student Entrepreneurs

The UK’s Innovator Founder visa is designed to attract ambitious entrepreneurs who can build innovative, viable, and scalable businesses in the UK. Following the Home Office’s recent Statement of Changes (HC 1333) to the Immigration Rules, significant new opportunities are opening up — particularly for international students. From 25 November 2025, students who complete their UK course can now switch directly, from within the UK, into the Innovator Founder route without having to leave the country.

What Is the Innovator Founder Visa?

The Innovator Founder visa replaced earlier business-focused visas (like the Start-up visa) to support founders who can demonstrate innovative ideas, business viability, and scalability.

Some of the core features and benefits include:

• Endorsement requirement: Applicants must be endorsed by a Home Office–approved endorsing body that evaluates their business plan.
• No fixed minimum investment capital: Unlike previous Innovator routes, there is no blanket £50,000 requirement just for applying.
• Self-employment allowed: Innovator Founders may work in their own business. Under certain circumstances, they can also take on a second skilled job (at least RQF Level 3).
• Pathway to settlement: There is a potential route to Indefinite Leave to Remain (ILR), typically after three years, but this depends on meeting business milestones set by the endorsing body.

New Student Route: Key Changes from the Home Office

1. Switching from Student Visa to Innovator Founder In-Country

One of the most significant recent changes is that, from 25 November 2025, international students who have completed their course can apply to switch directly from a Student visa to the Innovator Founder visa without leaving the UK. Previously, students who wanted to follow an entrepreneurial path often had to go through the Start-up route, or leave the country to reapply. That concession is now replaced by the Innovator Founder route.

2. Self-Employment While Switching

From the same date (25 Nov 2025), students may begin self-employment while their Innovator Founder application is pending, provided they:

• Have completed their course, or (in the case of a PhD) have spent at least 24 months on the programme.
• Have obtained an endorsement from an approved body.

This provision restores a flexibility similar to what was available under the older Start-up visa route.

3. Financial Requirements

Applicants must show they can financially support themselves. Specifically, they need to have held at least £1,270 in personal savings for 28 consecutive days before applying. Importantly, they cannot count funds from their investment/business endorsement or capital investment (if raising money for their business) as part of this maintenance requirement.

4. English Language Requirement

To be eligible, applicants must meet the English language requirement, as with other Innovator Founder applicants. The endorsing body application still applies, and the Home Office will conduct its own suitability and character checks.

5. Endorsement Criteria

To get endorsed, students (like all applicants) must present a business plan that satisfies three main criteria:

Innovative: The business must be original, address a market need, or deliver a unique competitive advantage.

Viable: It must be well-planned and structured so that it can realistically operate and grow.

Scalable: There should be potential for growth, whether in terms of revenue, market reach, or employment.

Additionally, endorsing bodies often look for supporting evidence (though not all criteria must always be met), such as:

• Past growth of the business (revenue or employment)
• Participation in recognised government or innovation programmes
• Raising a significant amount of equity finance (e.g., a six-figure or million-pound round)

6. Ongoing Monitoring

Once endorsed, the business will usually be subject to checkpoint reviews by the endorsing body — typically at 12 and 24 months — to make sure progress is being made.

Why These Changes Matter for Student Entrepreneurs

1. Reduced disruption: By allowing in-country switching, the Home Office removes a major barrier — students no longer need to leave the UK to apply for a visa that supports their entrepreneurial ambitions.
2. Encouragement of innovation: This change supports the UK government’s ambition to foster homegrown innovation and retain talented graduates.
3. Flexibility during transition: The ability to self-employ while waiting for a visa decision means students can start building their business without delay.
4. Clear pathway to settlement: Innovator Founder offers the potential for settlement (ILR) after three years, giving long-term stability if the business meets agreed milestones.

Risks & Considerations

While the changes are promising, student-entrepreneurs should be aware of several risks and practical considerations:

Endorsement is not guaranteed: Securing approval from an endorsing body requires a well-thought-out business plan, and not all ideas will pass the “innovative, viable, scalable” test.

Checkpoint reviews: Founders must deliver on growth or development targets; poor performance can jeopardise visa renewal or settlement.

Financial burden: Although there is no fixed requirement for a large upfront investment, founders still need to show they can support themselves, and raising capital may be challenging.

English and suitability checks: Meeting the English requirement and other suitability criteria remains essential.

Reduced Graduate route: Alongside these changes, the Graduate Route is being shortened (from two years to 18 months as of January 2027), which may reduce the time students have after their studies to establish themselves or switch into different routes.

How we can help

At Clarkslegal LLP, we advise international students, founders, and entrepreneurs on business immigration. In light of these changes, we can:

• Assess your eligibility for the Innovator Founder visa and the likelihood of endorsement.
• Help you review your business plan to ensure it meets the “innovative, viable, scalable” standard.
• Guide you through the application process, including financial documentation and maintenance requirements.
• Support you with ongoing compliance, including preparing for endorsing body checkpoint reviews.
• Advise on settlement strategy, helping you understand how to convert your visa into ILR once you meet the required business milestones.

Conclusion

The Home Office’s November 2025 changes mark a big step forward for international student entrepreneurs in the UK. By enabling in-country switching from a student visa to the Innovator Founder route, the UK is removing a key obstacle to entrepreneurial ambition — making it easier for talented graduates to stay, build businesses, and contribute to the economy.

For students with ambitious business ideas, this change represents a valuable opportunity. But navigating the Innovator Founder route requires careful planning, endorsement, and ongoing commitment — which is where Clarkslegal LLP’s expertise can make a real difference.