In a bid to hold on to entrepreneurial graduates, the Home Office will from 25 November allow holders of a Student or Graduate visa to swap directly to the Innovator Founder route without first leaving the country. The rule change, confirmed in updated guidance published on 18 November, scraps a long-standing requirement that forced would-be founders to return home, apply from overseas and wait weeks for a decision—often at the precise moment when early-stage ventures need momentum and UK investors want certainty.
The Innovator Founder visa—launched in 2024 as the successor to Innovator and Start-up routes—offers a three-year stay that can be extended indefinitely and converted to settlement. Applicants must have an ‘innovative, viable and scalable’ idea endorsed by an approved body, meet English-language B2 level and hold at least £1,270 in maintenance funds. Crucially, the Home Office has retained flexible work rights: founders may take secondary employment at Regulated Qualifications Framework Level 3 or above while building their company.
![International students can switch to the Innovator Founder visa inside the UK from 25 November]()
Universities and accelerators have lobbied hard for an in-country switch, arguing the UK was losing spin-outs to jurisdictions with smoother post-study pathways such as Canada’s Start-up Visa. The change is also designed to soften the blow of next year’s cut to the Graduate visa (shortened to 18 months from January 2027) by offering an alternative for ambitious alumni.
For employers, the shift means graduate recruits with strong business ideas could exit payroll sooner; HR should clarify IP ownership in employment contracts and prepare for staff requesting unpaid leave to pursue endorsements. For relocation teams, dependants may now remain during the switch, reducing churn and housing costs. Advisers should update post-study visa toolkits and alert international students of the tighter 28-day maintenance-fund rule.
Endorsing bodies expect a surge in demand. Early communication on endorsement criteria, funding expectations and business-plan quality will be critical if the system is to avoid the bottlenecks that plagued the old Start-up visa.
The Innovator Founder visa—launched in 2024 as the successor to Innovator and Start-up routes—offers a three-year stay that can be extended indefinitely and converted to settlement. Applicants must have an ‘innovative, viable and scalable’ idea endorsed by an approved body, meet English-language B2 level and hold at least £1,270 in maintenance funds. Crucially, the Home Office has retained flexible work rights: founders may take secondary employment at Regulated Qualifications Framework Level 3 or above while building their company.
Universities and accelerators have lobbied hard for an in-country switch, arguing the UK was losing spin-outs to jurisdictions with smoother post-study pathways such as Canada’s Start-up Visa. The change is also designed to soften the blow of next year’s cut to the Graduate visa (shortened to 18 months from January 2027) by offering an alternative for ambitious alumni.
For employers, the shift means graduate recruits with strong business ideas could exit payroll sooner; HR should clarify IP ownership in employment contracts and prepare for staff requesting unpaid leave to pursue endorsements. For relocation teams, dependants may now remain during the switch, reducing churn and housing costs. Advisers should update post-study visa toolkits and alert international students of the tighter 28-day maintenance-fund rule.
Endorsing bodies expect a surge in demand. Early communication on endorsement criteria, funding expectations and business-plan quality will be critical if the system is to avoid the bottlenecks that plagued the old Start-up visa.
