Post-Brexit London “will remain global hub for entrepreneurs”
The professional services sector is thought to be the most robust in the wake of the referendum
London is expected to remain a global hub for entrepreneurs in the wake of the European referendum, according to crowdfunding site Seedrs in a survey of its users.
52% of those surveyed said the capital would retain its status as a magnet for innovative businesses, just 16% that it would lose out to other global businesses and 32% that they didn’t know.
Professional services (29%) was the sector predicted to have the strongest opportunities for growth over the next year, followed by manufacturing (21%), financial services (20%), IT and telecoms (20%), hospitality and leisure (17%) and property (16%).
However, many investors expressed concerns over an uncertain future post-Brexit, citing potential regulatory change (41%), losing European trade (41%), low growth levels (35%), losing foreign direct investment (33%) and the risk of unemployment (27%) as particular worries. Just 15% were concerned about lack of access to finance.
The report also asked why respondents thought there was increasing appetite for alternative investments after the referendum. Portfolio diversification (93%), tax benefits (48%) lack of correlation with mainstream asset classes (39%) and the strong medium to long term performance returns of alternatives were claimed to be the main reasons.
Of those that were planning to invest by alternative means, 69% said that they would so through crowdfunding.
Jeff Lynn, CEO & co-founder at Seedrs, said: “We haven’t seen any slowdown in investment activity since the referendum, and we believe strongly that the UK remains highly attractive for inward investment.”