New research released by Tech London Advocates has revealed that 23% of London’s tech companies have experienced investors deferring investment decisions as a direct result of Brexit. The study shows that access to capital and talent have both become more challenging in the past two years.
39% 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%) of London’s tech entrepreneurs have found it harder to attract international talent during Brexit negotiations, with 29% claiming their staff have formally raised concerns around changing visa and immigration regulations.
Given these findings, it is perhaps no surprise that the technology industry remains highly supportive of the UK’s close relationship with Europe. When asked about the desired outcome from the ongoing negotiations, more than a third (36%) are hoping for no Brexit at all, whilst 23% want a quick decision regardless of the outcome.
An overwhelming majority of tech companies (87%) believe Brexit has damaged London’s international reputation.
Yet on the contrary, despite the increasing challenges facing UK tech companies, confidence in the future success of London’s tech ecosystem seems to remains strong. 82% 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.
Tech London Advocates exists to campaign to address the challenges facing tech companies in the UK. As such, the organisation is also launching its newest working group – TLA VC. Run in partnership with Beringea, this working group will convene investors to increase access to capital in London.
Russ Shaw, founder of Tech London Advocates & Global Tech Advocates commented: “It is no surprise that London tech investment fell in 2018 when so many tech companies are experiencing investors deferring decisions until they see some clarity around Brexit.
“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.”