The UK has produced 163 unicorns, private companies valued at $1 billion or more, more than any other European market. Over 90% of these remain headquartered in the UK, including standout successes like fintech giant Revolut and AI voice company ElevenLabs.
Much of this thriving ecosystem can be attributed to a Victorian-era bootmaker whose legal battle more than a century ago helped lay the foundation for modern entrepreneurship, says Attorney General Richard Hermer, who was addressing a group of entrepreneurs in London on Wednesday (11 March).
The landmark case that changed everything
The story centers on Saloman vs Saloman, a 1897 House of Lords decision that revolutionised company law. Aron Saloman, a bootmaker operating in Victorian London, incorporated his family business into a limited company to manage debts and protect his personal assets amid financial difficulties.
When the company failed, creditors sought to hold Solomon personally liable, arguing the company was merely his “alter ego.” The courts disagreed.
In a groundbreaking ruling, the Law Lords affirmed that a properly formed limited company is a separate legal entity from its owners. Liability rests with the company, not the individuals behind it, shielding entrepreneurs from personal ruin if ventures go south.
“The landmark judgment that resulted distinguished that the individual and the business were different entities; attributing liability to the company, not the individual,” said Hermer.
“This was an enormous step. It gave business owners the confidence to take risks. This precedent, established through the rule of law, enables investors to invest capital in British business with less risk than ever before, leading to modern capitalisation for a modern Britain,” he said.
In essence, Saloman’s case birthed the concept of limited liability in its modern form, allowing founders to separate personal finances from business risks.
This separation encouraged bold innovation: entrepreneurs could pursue ambitious ideas without fearing total personal bankruptcy, while investors felt safer committing capital, knowing their exposure was capped.
From Victorian bootmaker to billion-pound unicorns
That same legal certainty underpins the UK’s status as Europe’s unicorn powerhouse<m Hermer argues.
The rule of law provides the predictability and trust that global investors crave – English law now governs around 40% of cross-border transactions worldwide, and institutions like the London Court of International Arbitration benefit from the system’s reputation for clarity and consistency.
Hermer noted that this framework lets founders “focus on building something useful, not constantly looking over their shoulder.”
It protects intellectual property, enforces contracts, and creates an environment where ideas hatched in student flats or shared workspaces can scale globally.
He added that the UK government is doubling down on this advantage.
Hermer pointed to investments in innovation corridors (such as the Oxford–Cambridge–London arc), infrastructure, and funding initiatives. These include the British Business Bank’s £5 billion commitment to help companies navigate the “Valley of Death,” and Innovate UK’s £130 million Growth Catalyst program, which has previously turned modest public funds into billions in follow-on private investment.
Schemes like the Enterprise Management Incentive and Enterprise Investment Scheme continue to incentivise early-stage risk-taking.
The conditions are right
Hermer noted that by widening eligibility and raising investment limits, the government is making it easier for founders to attract great people, and easier for investors to back the next generation of UK companies.
“So my message to you. The next global company might not start in a boardroom. It might start in a student flat. In a shared workspace. Or in a conversation after an event like this.
“What makes the difference is whether people feel confident enough to take that first step,” he said.
He added that the UK’s rule of law tradition has been giving entrepreneurs that confidence for centuries.
“And the job of government is to make sure that continues. So if you’re sitting here today with an idea, even a small one, don’t dismiss it.
“You might be the next British success story. And with our government behind you, with our rule of law heritage, you have every reason to go for gold.”
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