Fledgling London Tech Firms Hit By Lack Of Funding After Brexit Vote

London-based tech start-ups are starting to see funding dry up in the wake of the EU referendum result, with many now considering plans to ditch the capital altogether.

Five investors suspended hundreds of thousands of pounds in promised money within 24 hours of the vote, according to financial data firm Netz.

The firm also faces the risk of not being able to tap enough talent as Britain’s departure from the EU could make it more difficult to hire from the bloc’s other 27 countries.

“The people we want to hire, are they still interested in coming to London? There is a lot of uncertainty from a regulatory point of view,” said German boss Frank Bertele. Since the vote, he has accelerated plans to expand into the US.

If funding is scarce, new tech firms and apps based in the UK could struggle to complete with successful startups like food delivery firm Deliveroo, designer clothing marketplace Lyst and music service Songkick.

London is well known for its blossoming tech scene, also known as ‘silicon roundabout’, named after the Old Street roundabout in London (pictured) near which many of the companies are based.

The tech sector is particularly dependent on accessing talent easily. A 2015 survey by Wayra found that one third of employees in tech startups in Britain are from outside the country, and one in five comes from another EU nation.

The concerns about the potential effect of Brexit come as the UK tech industry is already experiencing a talent shortage. Job search engine Adzuna shows there are around 35,000 open software positions in London.

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