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Tech firms ‘must fight’ for investment and talent in the face of Brexit, says TLA

A growing sense of gloom is settling over the capital’s tech firms ahead of the formal triggering of Article 50 next week, as a new survey from Tech London Advocates (TLA) reveals that one in ten (11.9%) businesses has experienced funding being held back or withdrawn following last year’s EU referendum.

The research, which is derived from a survey of 220 tech leaders in London, paints a pessimistic outlook for the sector as the Government gears up for marathon negotiations that will shepherd the UK out of the European Union.

According to the report, way over half (58.2%) of those surveyed believe the triggering of Article 50 will damage the capital’s position as a global tech hub while almost a quarter (24.3%) think it will have little impact.

The figures are timely, coming just a day after Tech City UK’s Tech Nation 2017 report which highlighted London as far and away the most vibrant tech hub in Europe, with robust growth across investment, turnover and job creation in the last five years.

According to TLA’s founder, Russ Shaw, the figures highlight how imperative it is that tech firms make their voices heard and fight for the future of the sector during the Brexit negotiations.

He commented: “Tech firms must fight for an ecosystem that can provide adequate investment and offer world class talent to allow startups and scaleups to grow to become the tech giants of tomorrow.

“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.”

Elsewhere in the survey, over a third of respondents claimed that it had been harder to grow their business since the EU referendum, while 34% claimed that they had seen in an increase in their international workers expressing concerns about visa rules and regulations.

Tom Adeyoola, who is Chief Executive Officer at fashion technology firm Metail, said that he had already experienced prospective employees either opting for other European countries or choosing not to take up positions in London due to the ongoing uncertainty.

He said: “The government must work to mitigate the damage from leaving the European Union to startups across the UK, guaranteeing access to international workers, research funding and investment to protect the UK tech industry.”

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