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Employee Uncertainty Looming for Tech Startups After Brexit

UK Tech Startups, Brexit & People

In the wake of Brexit, the tech industry suffered a significant blow. As a member the EU, the UK tech world had a resource pool of 500 million citizens. This incredible asset to startups was taken away overnight, and now Britain's ability to keep up with the Goliath that is Silicon Valley has been seemingly diminished.

In addition to losing a vast hiring pool, the UK loses funding from venture capitalists. A company based in Paris with a headquarters in London loses the collective data sharing and hiring ability of the EU.

The reality for the tech startup community in the UK is that the vast majority of them voted to remain. COADEC said that 80 percent of companies were in favour of staying, citing a single market, free movement of labour and economic stability as their reasons.

In the wake of Brexit, tech startups are anxiously operating, unsure of how their businesses will function in the future. Many employees are unsure of how long they will be allowed to work in Britain. These people have uprooted themselves to live and work in a different country. These people have friends, business relationships and often marriages.

Tech startups are often founded by savvy young professionals, and praised by the government for providing the jobs of the future. That future is now in question.

Saul Klein, an investor, commented that some are trying to, "stay calm and make lemonade". Keeping everything business as usual, he says, will keep the investors from running away from the situation. The UK, after all, has not ceased to exist, there is merely change coming. If need be, early stage startups can relocate. Large companies are often global, and do not rely heavily on the UK. But mid-stage companies that are dependent on the UK could be impacted.

The tech industry is not only about technology, but largely about people—smart and talented people, consolidated into one market. The UK is now leaving that large market in favor of its own, and only time will tell how the tech industry in Britain will fare.