Brexit deters some international staff from London tech firms
One in three tech companies in London have seen talks with potential international hires fall through due to Britain’s decision to leave the European Union, according to a survey from industry body Tech London Advocates.
As a result nearly two-thirds of London’s tech entrepreneurs believe Britain’s vote to leave the European Union has already damaged the international reputation of the city’s tech sector, although they still said it was the best place for startups.
Britain’s digital sector has been vocal in its concern that Brexit, and in particular ending free movement of labour, could threaten London’s status as the leading European destination for tech startups and investment by major Internet groups.
Companies including Facebook, Google, Amazon and Snapchat have announced plans to expand in London since the Brexit vote, but have said they need to be able to attract the best people.
But 60% said they still believed London was the best place to start a tech company.
“Entrepreneurs are defined by their ability to turn challenges into opportunities and the sentiment across London’s tech sector is increasingly one of determination, conviction and ambition,” said Russ Shaw, founder of Tech London Advocates.
“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 that are already fuelling our investment pipeline.”