View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Hardware
November 16, 2017

Access to talent is Brexit’s biggest drawback, say tech leaders

IT heads think Brexit has already damaged the reputation of the London tech sector.

By CBR Staff Writer

One in three tech firms say international hires have fallen through because of the Brexit result, according to a survey from industry body Tech London Advocates.

More than half (55%) of tech founders felt the biggest threat to their sector is Brexit’s impact on access to talent. As a result, almost two-thirds (61%) of London’s tech entrepreneurs believe Brexit has already damaged the international reputation of the city’s tech sector.

In light of the results, Russ Shaw, who founded the private sector group in 2013, said, “Slowing down access to European talent will make growing a tech company harder, but London is focused on strengthening its relationship with tech hubs across Europe and around the world.”Brexit

Nevertheless, Mr Shaw characterised the sentiment of London’s tech sector as “one of determination, conviction and ambition.”

On the other hand, a report from London & Partners found the UK tech sector gained record-breaking venture capital investment after the Brexit vote, despite swirling concerns. In the period January to June 2017, London tech attracted £1.1bn in venture capital investments – four times greater than figures for the same period in 2013. London currently brings in more than double the amount of investment of any other European city.

Theresa May pledges to double tech visas – but will it stop the Brexit talent exodus?
VC firm behind Farfetch and Goop raises $150m in boost for UK post-Brexit
UK fintech shrugs off Brexit fears and nears record investment

UK fintech boomed after the Brexit result, raising more than twice the amount of investment in quarter one to three in 2017 compared with 2016.

Tech London Advocates also found 60% of British tech entrepreneurs believe London is still the best place in Europe to start and scale a tech company. The capital’s tech community believe future investment will come from North America (32%) and East Asia (25%) as opposed to (14%). These international markets are driving substantial deals, including SoftBank’s recent $502 million investment in Improbable and $31.4 billion acquisition of ARM Holdings.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

The results are based on a survey of 113 out of Tech London Advocates 5,400 members between October and November 2017.

Topics in this article : ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU