Technology

Posted on May 3, 2019 by staff

Brexit blamed for quarter of lost tech investment

Technology

Twenty-three per cent of London’s tech companies have had an investor defer their investment decisions as a direct result of Brexit.

That is the results of a survey released by Tech London Advocates.

The private sector network released the findings in its latest study into the impact of Brexit on London tech.

The results suggest that access to capital and talent have both become more challenging in the past two years.

Thirty-nine per cent of tech companies reported finding it harder to access capital in London, with this figure increasing to 60 per cent when asked if this challenge will increase over the next 12 months.

Nearly two thirds (60 per cent) of London’s tech entrepreneurs have found it harder to attract international talent during Brexit negotiations, with 29 per cent claiming their staff have formally raised concerns around changing visa and immigration regulations.

The majority of tech companies (87 per cent) also believe Brexit has damaged London’s international reputation.

However, despite the increasing challenges facing UK tech companies, confidence in the future success of London’s tech ecosystem remains strong. 82 per cent of tech companies believe that whilst other European tech hubs might see more demand for global tech HQs, London will retain its crown as the tech capital of Europe

“One thing is certain – the political situation is harming our fastest growing industry and making access to capital and talent harder than ever before,” said Russ Shaw, founder of Tech London Advocates & Global Tech Advocates.

“It is incumbent on the private sector to provide leadership in such uncertain times, to celebrate the strength and success of the industry to continue attracting investment and to work together as a community to address the challenges we face.”