Tech startups still booming in London despite Brexit

Even though uncertainty surrounding Brexit is still swirling, it’s comforting to know that it’s not all doom and gloom.

The Office for National Statistics reports that the number of new startups in the UK has actually risen since the referendum in 2016. According to Luke Davis, founder of private equity firm IW Capital, tech firms are behind this increase. In fact, London’s tech startups remain top of the class across Europe.

Analysis firm Compass reports that London is home to between 3,000 and 5,000 tech startups, valued at around £34 billion, confirming that the capital is still one of the largest tech hubs worldwide.

Stopgap consultant Sarah Windsor has seen this continuous growth first hand. “While some other industries have been slower to recruit in the past year, tech is still thriving - as many new startups are looking for marketing talent in London and are growing on a global scale."

So, why London?

Strong technology and marketing talent is constantly emerging from the UK's top universities and colleges and will continue to do so after Brexit. But Sarah has noticed that requirements within the tech sector are constantly shifting: "We're seeing a lot of companies hiring for growth marketing roles right now. Automation systems experience is becoming pretty essential in the digital mix."

Additionally, access to venture capital in London is abundant, particularly in comparison to the rest of Europe. According to KPMG, the third quarter of 2018 saw more than twice as much VC given out in the UK compared with Germany. Furthermore, The British Business Bank, which provides credit for small and medium-sized businesses, has had a major cash injection, meaning more money is available for startups to really make an impact.

Finally, tech startups are an increasingly desirable sector in which to build a career. With generous income, flexible working patterns and the chance to work right at the cutting edge of technology and innovation, they’re an attractive proposition for both graduates and more seasoned professionals looking to share their experience in a new sector.

"When it comes to benefits, flexible hours and home working are popular in the tech startup sector,” says Sarah. “There are also lots of soft benefits associated with the cool co-working spaces where these types of companies are based. Some offer gym access, fun social spaces and most companies run their version of Friday food and drinks!"

If you’re searching for top marketing talent to help grow your tech startup, or you’re a candidate looking to take the next step in your marketing career, talk to the team at Stopgap today. Our recruitment experts enjoy getting to know you and your business inside and out, and will find the perfect match to help your business boom.