Will the UK Tech Sector Weather the Brexit Storm?

UK Technology & Brexit

It is well known that Silicon Valley is home to some of the world's largest tech companies, including Apple, Google, Facebook and many more. Besides hosting these companies, Silicon Valley is poised to make an impact in the United Kingdom's exit from the EU, that is if UK tech companies have anything to say about it.

According to a recent article in The Guardian, 30 highly respected tech leaders from the UK have made the journey to Silicon Valley with the hope of impressing and attracting business and ultimately cash into the country. With this particular sector being an integral part of the UK economy, it is important for them to convince the world's largest tech companies that, despite Brexit, the UK still provides a desirable environment for business ventures of companies such as Facebook and Google.

Brexit will stack a large conglomerate of tech competition against the UK. As Gerald Brady, the managing director for Silicon Valley Bank states, "Other European countries are trying to attract talent by saying, 'Hey, come to Ireland, or Holland or Germany because we've got free movement of people and if your number one issue is talent, we're gonna be able to help you get engineers'".

There is no doubt countries that are members of the EU offer many incentives to large tech companies that are looking for the flexibility of access to the talent of 27 countries as opposed to one. Though statistics prove that the UK may not have much to worry about. According to a Tech North study, investment in UK tech businesses has reached a 10 year high with £327 million, up from £20 million in 2007. With 12 tech businesses now valued at more than £1 billion, it is hard to imagine a major collapse of the tech industry in the UK is looming.

The main fears for many investors looking to put money into the UK tech sector are widespread. Some of the most notable concerns include the effects of Brexit, a lack of modern rail transportation, as well as the spread of tech outside of the major hub which is London. Though as was noted in the above statistics, which demonstrate much growth throughout the UK tech industry, these fears may be considered to be overly cautious presumptions. If the UK tech sector continues to grow at the same rate that it has in the last ten years, it will have no problem attracting the attention of its counterparts in Silicon Valley, while handling potential losses incurred due to Brexit.