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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.”

Henry Williams
Henry Williams

Henry has been writing for Startups.co.uk since 2015, covering everything from business finance and web builders to tax and red tape. He’s also contributed to many of our industry-renowned annual indexes, including Startups 100 and Young Guns, and created a number of the site’s popular how to guides. Before joining the team, he reviewed films for a culture website, and still harbours ambitions of being a screenwriter.

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