One in Five Start-Ups Consider European Offices Due to Brexit
A fifth of UK-based technology start-ups are thinking about opening a European post in response to Brexit.
Silicon Valley Bank’s (SVB) annual Startup Outlook report revealed that 21% of UK start-ups are looking to open a mainland European post in addition to their UK headquarters as a result of fears of what Brexit will mean for their company.
The survey of start-ups in technology and healthcare industries reported on their reactions and fears of the future business climate for their business. SVB surveyed 941 respondents across the US, UK and China.
Of the 134 UK respondents, 1% will definitely be moving their headquarters to Europe, while 11% are thinking about upping sticks and moving their company HQ.
The most common Brexit-related fears UK start-ups have are; being worried about long-term opportunities in the UK (32%), difficulty gaining venture capital funding (21%) and an increased cost of running their business (21%).
These doubts are prevalent in start ups’ outlook on conditions for 2017. 84% described the 2017’s business conditions as staying the same or improving, down 15% from last year.
However, despite the uncertainty surrounding upcoming business conditions, start-ups are still hiring, with 89% looking to increase their workforce this year.
Phil Cox, president of Silicon Valley Bank’s UK Branch, said: “While 21% of innovators say they will be opening European outposts, the majority will continue to back Britain as the home for their headquarters.
“Businesses are seeing more opportunity than fear, which can only be a good thing. Though startups are feeling less optimistic about 2017 than they were about 2016, even more are looking to grow their workforce this year. Not without challenges, but the British technology industry is not slowing down.”
Is your start-up one of those considering moving the headquarters to Europe after the Brexit vote? Or do you think it’s an extreme response to the UK leaving the EU? Leave your comments in the section below.