Britain’s tech startups eye continent as Brexit sows angst

Bloomberg

British technology startups are
beginning to stress out over Brexit. Initially confident their industry wouldn’t be harmed by Britain’s break from the European Union, UK tech entrepreneurs are now girding for a bevy of challenges. A poll of 940 startup executives in the UK and other nations found that Brexit, which is set to be triggered in March, is sowing anxiety about fundraising, the hiring of non-British employees, and accessing the European market.
Less than half the executives believed 2017 will be a better year than 2016, according to the survey released on Tuesday by the London unit of Silicon Valley Bank, a Santa Clara, California-based investment bank. More than a fifth of fledgling UK tech ventures expect to open offices in continental Europe, and one out of 10 are considering moving their headquarters across the English Channel.
Still, technology giants remain confident in a post-Brexit UK In January, Snap Inc., the Venice, California-based social media powerhouse that’s preparing an initial public offering, announced it will base its international headquarters in London. Apple Inc. and SoftBank Group Corp., the Tokyo-based tech fund, have also settled on the British capital for major new operations.
The UK should remain the biggest tech hub in Europe for some time thanks to supportive regulation and London’s vibrant startup scene, said Phil Cox, president of Silicon Valley Bank’s UK branch. “I’m not saying it’s going to be easier but these companies are very disruptive and they will find a way to employ the right people and sell their products and services across borders,” Cox said.
Even so, the survey is another sign that Brexit may exact a toll on an industry that’s been a bright spot in the British economy since the 2008 global financial crash. London has become a hotbed for groundbreaking financial technology that’s reshaping the banking and payments processing industries.