Is Brexit Going To Make The UK a Super Hub For Tech?
Brexit has become one of the most frequently used words in the UK across every medium. And as negotiations continue to be a back and forth between the European Union and the UK, businesses are in a shaky house. Especially as the EU blocks the way for startup companies from Britain recently, removing crucial funding.
But while companies are facing increasing uncertainty over the outcome of leaving the EU. Technology and Startup companies are not seeing the same sort of picture as other industries. If anything, in spite of future investment concerns, investment for technology firms in the UK outpaced their continental rivals. With the UK bringing in over four times that of Germany, even more than France, Sweden and Ireland combined.
While the UK seeks to find a new position on the outside of Europe, technology and startups look promising. But are the ingredients all together to create a new Superhub for tech on Europe’s doorstep?
UK – Post-Brexit Superhub?
In 2017, far from shrinking in the face of leaving the EU, Britain saw its investment level spike for startups. With many organisations stating their disappointment at the referendum but had no intention of leaving the UK. Research has suggested that the volume of international investment entering the UK for tech startups is on an upward trend. With annual increases in the number of internationally funded companies since 2015, in spite of initial pessimism.
The uptick demonstrated in 2017 is, in part, due to the government aiming at retaining a rapidly developing market. Since August of last year, the British government has proposed establishing a fund to encourage growth. Either as a private, or public-to-private venture, statistically, it seems to be working well so far.
But the current rate of growth coming from startups, the hope is that this rate of funding and startup development continues. And with the news that Culture Trip, a London-based startup has achieved series-B funding of over £80 million. The budget proposal by the government is in place to create every incentive to remain in the UK.
Currently, Britain is home to 4% of the worlds Unicorn-scale businesses, with the US holding over 54%. A Unicorn refers to a company that has a market valuation of over a £1 Billion.