London startup scene weighs threat of Techxit

FRANKFURT: Britain’s tech startup scene was having a bumper year in terms of new company creation, fresh funding and acquisitions by global tech players before voters

FRANKFURT: Britain’s tech startup scene was having a bumper year in terms of new company creation, fresh funding and acquisitions by global tech players before voters decided to leave the European Union in Thursday’s referendum.

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Now high-profile companies are threatening to pull out or slow down plans to enter the UK market, international employees are second-guessing their immigration standing and investors could cut new funding that is the lifeblood of young tech firms.

“Nothing’s changed yet but everything’s changed,” said Taavet Hinrikus, the Estonian CEO and co-founder of cross-border money service Transferwise, which is based in London.

London has become a magnet for tech entrepreneurs looking to do business in the EU and a global launch pad for firms aiming to compete with US and Asian web giants. Half the founders of London’s top tech start-ups come from outside Britain.