Tech leaders fear London won’t be tech capital of Europe in five years
Market uncertainty has overtaken shortage of talent as the biggest threat facing London tech firms since 2013
29% of technology professionals in London believe the city will no longer be the capital of Europe for tech investment in five years time, according to a report from Tech London Advocates.
27% of those surveyed said market uncertainty was the biggest threat to London tech firms, overtaking shortage of talent (19%) for the first time since 2013. 39% said it is now harder to raise funding in the city than it was 12 months ago, while 61% believed Brexit will make it even harder.
57% of tech professionals stated that the triggering of Article 50 has damaged London’s reputation as a global tech hub, while 51% felt the government hasn’t done enough to attract investment for British companies. 35% of respondents said they expect no benefit to come from the upcoming election, regardless of the result.
35% cited artificial intelligence (AI) as the tech vertical likely to attract the most investment over the next year, followed by financial technology (19%), cyber security (13%), health tech (8%) and augmented/ virtual reality (7%).
Russ Shaw, founder of Tech London Advocates and Global Tech Advocates, commented:
“Everything that has made London a global capital for tech excellence is still here, but market uncertainty can cripple confidence and restrict the flow of capital into the city’s fastest growing firms. It is incumbent on the entire tech ecosystem to showcase the strength of our tech companies to attract investment.”
Priya Guha, UK ecosystem general manager at RocketSpace, said: “London is at the heart of the finance, tech and creative industries and the home to government, making it unlike any other city in the world. We need to enable businesses operating in our global city to flourish. Through supporting a diverse skills base and showcasing the city as a leader in tech, we can ensure we continue to attract the investment our startup and scale-up tech companies deserve.”