Member Article

Access to talent biggest problem faced by tech firms and Brexit could make it even worse

Tech firms in the capital continue to dominate their European rivals in attracting the continent’s top tech talent, but say that getting their hands on suitably skilled workers remains their biggest challenge.

According to a new study by London venture capital firm Balderton, the capital’s startups account for 31% of all startup employment in Europe while the UK, France and Germany combined account for two thirds of all the continent’s tech staff.

However, the report, which is described as the most comprehensive study of Europe’s tech talent ever undertaken, warns that the UK’s highly mobile tech workforce could be threatened by Brexit.

With over 40% of UK founders not from these shores and with the capital attracting the most job searches out of all European tech hubs, any controls on free movement or more stringent visa requirements could seriously hamper the growth of the city’s digital economy.

Touching upon the dangers for the sector posed by Brexit, James Wise, Partner at Balderton Capital, said: “London, together with Paris and Berlin, dominate the tech scene in terms of employees and investment today.

“London in particular has benefitted significantly from migration, with over 40% of the tech companies founded last year having at least one non-native founder.

“But the relative weakness of the pound since the referendum vote, together with developer’s willingness to be mobile and work in smaller tech hubs, could reduce the relative advantage the capital enjoys without proper policy support post-Brexit.”