FT Tech start-ups activate Brexit contingency plans

https://www.ft.com/content/c3a2ec46-1341-11e8-8cb6-b9ccc4c4dbbb Prolonged uncertainty over the UK’s post-Brexit policies on immigration and passporting rights has pushed many British tech entrepreneurs and start-ups to strengthen their businesses in mainland Europe. Currencycloud, the payments company backed by Google Ventures, is one of a number of technology companies that have begun implementing their Brexit contingency plans, establishing offices or applying for regulatory licenses outside the UK because of concerns about hiring staff and accessing clients after Britain leaves the EU. “While we’d love for the UK to have a soft Brexit, you can’t guarantee that,” said Todd Latham, chief marketing officer and head of product at Currencycloud, which has applied for a regulatory license in the Netherlands. “Our concern is about how we service customers and how we make sure that we’re bringing the best talent into the organisation.” Start-ups are seen as a crucial part of the tech “ecosystem” because of the role they play in encouraging innovation. The UK government has attempted to reassure the country’s £170bn tech industry that Brexit will not affect its ability to hire highly skilled coders or do business in the EU. Over the past year, Prime Minister Theresa May and chancellor Philip Hammond have unveiled a number of initiatives, including plans to double the number of “tier 1” visas for “exceptional talent” and establish a new office in government to promote start-ups in artificial intelligence research. However, smaller start-ups without the resources to support visa applications complain they will face a severe talent shortage if they cannot rely on hiring developers from the EU. A fifth of tech jobs in London are filled by workers from the bloc, according to data from the Recruitment and Employment Confederation. Across the country as a whole, they hold 7 per cent of all tech roles, according to an analysis by the department for exiting the EU. Company founders say hundreds of developers have rejected jobs in the UK since the referendum because of uncertainty over their future status. “The number of candidates we’ve had applying from Spain or France has completely dropped off,” said Aneesh Varma, founder of Aire, a start-up that creates credit scores. The UK has historically served as Europe’s main start-up centre because of London’s popularity as a base for venture capital investors.Read less