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What impact could Brexit have onthe UK’s tech scene?

London is officially the most successful tech start up hub in Europe. It produces the

largest number of tech startups within the European Union by a considerable margin

with the capital now boasting over 2000 tech startups and around 48,000

April 22nd, 2016 Author: RSS-Feed

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employees. While a significant part of this growth has unquestionably been driven

organically by the diverse, and bountiful supply of talent that London has long

attracted. A good deal of credit, in no small part, is due to a number of policies

carried out by the current government. Since around 2011, a concerted, and by all

accounts, successful effort has been made to attract big players and even bigger

investment! Last year was proved to be a record year for funding, as the capitals

technology firms attract more venture capital financing than any previous year! Peer-

to-peer funding is another factor that has facilitated the rapid level of tech startups,

with London leading the world in this respect.

Another central factor that has helped cement London’s position as a tech-start up

giant is its incredibly diverse business eco-system. It’s one of the few cities in the

world which can boast being home to just about every industry that exists. For a tech

company starting up, this provides the huge advantage of being close to whatever

sector they need: government, finance, arts, media, health, education and more.

London clearly has a bit of catching up to do before it can generate the sort of

turnover Silicon Valley does. However, with the continued surge in investment that

the capital is expected to receive, investors are bullish on London’s prospects, and

with all the talent it has at its disposal, you wouldn't bet against it.

Recently however, there is cause for concern. A growing apprehension that such an

ambition could go unfulfilled. The source of this apprehension is the pending EU

referendum and the prospect that brings of Britain possibly forfeiting its membership

of the EU. The tech sector has made it clear that it is overwhelmingly opposed to a

What impact could Brexit have onthe UK’s tech scene?

What impact could Brexit have onBritish EU property owners?

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Brexit. A recent survey of the members of ‘Tech London Advocates’ which represents

almost 3000 senior members of the capitals booming tech scene, stated

unequivocally, that Brexit would be bad news. One of major factor behind London’s

rapid emergence as a global tech hub, has been the dramatic increase in funding

tech startups have received over the last five years in particular. Investors are

encouraged by a number of factors, not least the significant pool of talent London is

able to draw from the EU. This investment has been crucial to London's position as a

global player on the tech scene. With this influx of international capital has come a

tremendous opportunity for the city. So far London startups have secured close to

£880 million in funding according to London and partners, with total venture capital

investment fully expected to surpass £1 billion by the end of the year.

With more investment and talent in London than ever before, it is increasingly likely

that more British ‘unicorns’ - or $1billion dollar companies - could emerge on the

scene. Since 2000, there have been 17 unicorns, a number that is fully expected to

grow over the next decade. The UK is already leading the way in sectors like fin-tech

and E-commerce, and undoubtedly one of the central factors behind London’s tech

scene success is its ability to attract top talent. A combination of its immense cultural

pull as well as its unique (and fortunate) position of being geographically and

linguistically aligned with both Europe and countless other developed nations in the

world, means there is a huge pool of talent desperate to work in the city. Diversity is

clearly a vital driver for success. It breeds innovation as companies are powered by a

wide spectrum of creative ideas, experience and skill sets. Most agree, that Brexit

would make it harder, if not significantly harder to employ the caliber of talent it has

so far been able to draw upon from the EU. PDF generated automatically by the HTML to PDF API of PDFmyURL

so far been able to draw upon from the EU.

The long and short of it is this. The UK tech scene is thriving, currently creating jobs at

three times the rate of the rest of the economy. There are two fundamental drivers

behind the recent surge in this sector. The first, is the vast and plentiful array of

talent that tech companies and start ups have at their disposal which in turn breeds

innovation and creativity. The second, is the increased levels of investment in recent

years, that have allowed that talent, innovation and creativity to reach its full

potential. While the UK’s membership with the EU is by no means the sole driving

force behind both these factors. It is certainly a significant one.

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