Let's get it started: London's vibrant tech scene hosts LeWeb for first time

The UK tech scene had a French flavour this week – as the annual Paris internet conference LeWeb came to London for the first time.

The two-day event was a mix of big name speakers from across the online and app industry - including Kevin Systrom of Instagram and Phil Libin of Evernote - alongside smaller start-ups looking to attract funding for their businesses.

With the UK in recession and unemployment rising many within Government and business are hoping this new digital entrepreneurial spirit is just what Britain needs to spur an economic recovery.

Instagram co-founder and CEO Kevin Systrom who attended the two-day event

But while some remarked there was a lack of specific UK start-ups taking part at LeWeb, others said those from these shores were simply concentrating on getting the job done instead.

So just how strong is the start-up scene in Britain right now?


Elizabeth Varley, co-founder of London's TechHub, said: 'The state of the British start-up scene is very exciting at the moment. Entrepreneurs are really in the "just do it" mindset and bootstrapping their businesses to get products out there into the world that they're really passionate about.

'At TechHub, we're seeing entrepreneurs coming straight out of school, straight out of uni, from corporate backgrounds and those who've built and sold a couple of businesses and are on the next. Those who have talent and tenacity are creating their own jobs.'

Shaa Wasmund, founder of business advice website Smarta, agreed. She said: 'There has been a significant emphasis on the UK start-up scene over the last few years; entrepreneurship and "start-ups" seem to be the "in" words.

The Govt has offered tax breaks to encourage tech start-ups

'The government clearly thinks there's both political and economical mileage in the UK start-up scene; using it at the heart of many of their campaigns.

'My view is that anything that helps and encourages more people to turn their ideas into reality is a good thing, but don't be mistaken into thinking we have the challenge solved. We don't and we are still a long way from doing so. It is an ecosystem and like any ecosystem, it needs to be nurtured to grow.'


Kevin Dixie is MD of a start-up called fuelmywebsite. It aims to help small and medium sized businesses push themselves by gaining coverage on blogs rather than paying for a traditional advert in a local newspaper.

He is currently raising funding to push the company forward and believes that while it's tough out there to attract investment, there's no shortage of good ideas and hard-workers and incentives from the Government.

Kevin said: 'We will create a business with a £100m valuation in 24 months, based in London. Our business has changed shape many times and now, with the deals and partnerships we are working on.

'I have learnt that without focusing on your sales and product, you will find it very hard to get any funding in the UK.'

He added: 'The British start-up scene is currently fizzing, especially around the Shoreditch and Old Street region. I am also in the UKTI Global Entrepreneur program and have met with many start-ups moving to the UK due to the benefits with taxation here.'

Steve Karmeinsky recently founded City Meets Tech, in a bid to encourage bankers to spot the potential of investing in start-ups, especially given the potential tax efficiencies their investments can attract.

He said: 'The Government has realised start-ups have the potential to be the future. If you look at successful ones in the UK like Moshi Monsters, they are a multi-million company, which started small. Most will fail but several will grow and be successful and go on to employ people and generate money for the UK economy.

'The problem for many start-ups is getting early stage finance. Once you have revenues, then you can go to VCs or banks. Silicon Valley has had a tradition of existing companies funding new start-ups since the 1960s with a "pay it forward" culture. This hasn't happened in the UK.

'Start-ups here are so outside the general banking zone's radar even though Silicon Roundabout is only half a mile away from the City.'

But a boost for UK-based start-ups has recently come in the form of the Silicon Valley Bank's arrival in Britain.

It has now opened its first branch here, a move welcomed by Chancellor George Osborne, and bosses promise millions of pounds in investment loans.

Phil Cox, Head of UK, Israel and India for Silicon Valley Bank, said: 'For UK and European clients, the links we have around the world could help them to transform their businesses.
 
'Our mission is to help entrepreneurs and innovative businesses succeed. Building on our credentials of supporting technology firms in the US, we are excited to be able to help the UK’s entrepreneurs meet and exceed their ambitious goals.

'The UK is an important geography for locally-grown technology, life science and cleantech businesses, as well as those that are selling into, or managing, a part of their business in the UK.'
 
He added: 'In addition, many of our clients consider the UK a gateway to more countries in Europe. It is a significant untapped market and we are excited about the opportunity to bring the full extent of the SVB platform to the UK.'

Tom Brewster, deputy editor of TechWeekEurope, said: 'LeWeb was another conference where the Americans dominated. There were some small British companies there, and many may simply be ploughing away at their own networking, but none were invited onto the main stage, hinting that we still genuflect before the US when it comes to technology.

'It's a shame, because there are some incredible technology companies in the UK.

'Anyone who was in Shoreditch earlier this month for the Digital Shoreditch jobs fair knows there is plenty of interest from UK youngsters wanting a piece of the action, which is great for this embryonic, exciting cluster.'

Spencer Lambert, CEO of on-demand video presentation start-up Present.me, believes the UK is definitely the place to be right now.

He said: 'It's a hugely exciting time to be a start-up in the UK. There are so many opportunities out there that the challenge is to pick the right ones to capitalise on and keep focus.

'As a start-up, every day really is different, it doesn't feel like going to work.'