At least 26 London-based tech entrepreneurs ‘have lost out on funding’ since Brexit


At least 26 London-based tech entrepreneurs say they’ve experienced investors holding off or withdrawing from a funding round since the Brexit referendum.

The research, released by Tech London Advocates after surveying 220 of its members, also found that the large majority (58.2%) believe that once triggered, Article 50, will damage the capital’s position as a global tech hub.

Alternatively, 24.3% of people surveyed think it will have little impact on London’s status as a technology hot spot.

The research also highlighted the fact that many tech entrepreneurs continue to have doubts about the UK’s withdrawal from the European Union (EU), with 33.7% of tech companies in London saying it has been more difficult to scale their businesses since the referendum result.

Russ Shaw, founder of Tech London Advocates, commented on the findings and urged entrepreneurs to fight for a tech ecosystem that can provide adequate investment and offer world class talent to startups and scaleups.

“By working with government, we can help shape a Brexit that ensures London retains its position as the tech capital of Europe and an important epicentre for global tech – with high levels of investment and a world-class skills base,” Shaw said.

The findings come amid a seeming reliance on workers born outside of the UK to provide the skills needed for companies to succeed in the country’s technology sector.

Almost a quarter (24.6%) of respondents said their companies employed a percentage of between naught and 25% of workers born overseas.

Some 22.3% said that between 25 and 50% of their workforce was comprised of international workers.

Additionally, the survey found that 15.4% had seen new customers withdrawing from deals based on uncertainty around the UK’s impending Brexit.

The news comes a day after Tech City UK’s Tech Nation 2017 report found £6.8bn was invested by venture capital and private equity investors in UK tech firms last year.