London’s standing as Europe’s leading destination for tech start-ups is at risk if the British government does not clarify how it plans to keep the best technical talent, entrepreneurs and investors have warned. In an open letter to Prime Minister Theresa May, nine major UK-based technology entrepreneurs and investors, including Niklas Zennstrom, Skype co-founder, pressed the government to step to guarantee a continued abundance of experienced migrants after UK drops the EU. It also called on the government to address EU market access and other concerns. The No. 1 issue for entrepreneurs post-Brexit is admission to talent, in specific technical talent. It was dated Dec. 6 and timed to correspond with the yearly TechCrunch Disrupt London conference for start-ups and investors. Allotments on particular ability could harshly narrow the ability of new tech firms to increase.
The letter calls on the government to push for connection to the European Union’s virtual single market and to guarantee a simple and competitive framework for firms, labor, tax, stock options and bankruptcy security. Zennstrom said at TechCrunch, “what the UK government needs to make sure is that technology companies still have access to the best talent in the world. If (that happens) without a lot of red tape, we are going to be fine”. Paris and Berlin are striving to expel London’s advantage in the European start-up scene, while other cities including Dublin, Amsterdam and Frankfurt are also advocating themselves as alternative tech hubs in the face of Brexit skepticism. In fintech, a sector where London positions as a global head, funding for UK firms has diminished since UK’s vote in June to leave the EU. Germany’s rival fintech scene has captured 35 percent more venture capital funding than Britain in the last two quarters, according to a report by KPMG and CBInsights.
The British government has put forward a number of initiatives to support the tech sector, such as providing funding for more fiber-optic broadband and committing to boost investment through the British Business Bank to replace potentially lost EU funding. It has showed off plans by U.S. tech giants Facebook, Google, Amazon and Apple to generate new stations in London and employ additional crew as a method of confidence in the UK market. But it has so far prevented creating commitments to ensure a continued flow of technically skilled migrants into UK.