How Brexit Effects Tech Ecosystem?

by GDP Venture
Brexit

The UK has voted to leave EU. A lot of focus here is on uncertainty in how things will proceed, including the future of technology ecosystem. Many technology firms there will face various implication by this decision.

Apparently EU member states workers are quite important to UK tech startups because there just aren’t enough capable UK graduates to fill positions in the field. Barriers to immigration and recruiting talent abroad will be a painful obstacle for small firms. Another issues that could raise are material impact on the currency, borrowing rates, house prices, and wider consumer prices. If startup means scalability, then those factors are almost certain to throttle their startup’s scalability, thus, profits. This gain nothing but a less interesting scene for VCs. Microsoft also warned that Brexit would make it less likely to invest more in the UK.

Another loss to UK is that EU currently has a patchwork of privacy laws, and the General Data Protection Regulation was passed in April after more than four years of negotiation is supposed to provide harmonization and outline how citizen's data is processed. So tech firms most likely want to see the UK align its laws with the EU on this front. The regulations is set to be implemented across the EU in 2018.

On the other hand, The Federation of German Startups confident that Berlin will emerge as the winner of dominant hub battle in the Brexit scenario since they always expect to outcome a war between Berlin versus London.

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