16 Nov'17

An increase in tech start-ups since the Brexit vote – another Brexit fallacy?


An evaluation of Companies House data by audit, tax and consulting firm RSM showed that the number of tech start-ups has doubled since the Brexit vote. In June 2016 there were 2325 software publishing, computer programming and business and domestic software companies. In the eight months after the referendum, there were 5995. The rise in tech start-ups was particularly significant in London. Prior the referendum, there was a lull in tech starts-up which RSM reasoned by there being ‘uncertainty surrounding the outcome.’ Clearly RSM believe there is lots of certainty now! Is it possible that something has happened that has nothing to do with the Brexit vote?


Discussing the statistic Richard Heap, a technology partner at RSM, stated ‘angel investors, venture capitalists and private equity firms continue to support and invest in the UK tech scene’.


The tech start-up Trouva has recently been reported on for raising $10 million from investors. Trouva is a website that provides small businesses a platform to sell online. Therefore, Trouva is a marketplace for companies selling clothing, homeware and lifestyle products. The main investor was BGF Ventures, who have previously invested in Farfetch, Etsy and Asos.


Harry Briggs, BGF Ventures partner, said ‘we believe that Trouva could help people across the world discover unique, meaningful products that make home feel like home’.


With the increase in tech start-ups, Business Insider listed ’17 best new startups that have launched this year’. Check out these 17 startups ‘hoping to change the world, become the next unicorn – or just build a successful business’.


The increase in tech start-ups does not mirror the concern that as the big tech companies get richer it’s ‘game over’ for start-ups, as published in The Guardian.


One ‘founder, who wished to remain anonymous’ stated that ‘People are not getting funded because Amazon might one day compete with them.’


The Guardian use the example of when Amazon invested in Jonathan Frankel’s start-up Nucleus (pretty sure that’s from Silicon Valley) and then they cloned the voice-controlled device when they launched Echo.


Can tech start-ups and big corporate tech companies coexist together, each providing a different services?