London’s tech boom is more than just hype
The editor of TechCrunch, a popular publication followed by technology companies, said that the UK’s capital has become, and continues to act as, a bridge between the US and Europe.
Mike Butcher, speaking in City A.M., said London’s recent successes had established the city as a rival to other global tech hubs, which is why his publication has taken the decision to bring its Silicon Valley conference to the UK for the first time in October.
He said the UK is ideally located to act as a launch pad for US firms looking to expand in Europe and vice versa.
“Its position between the US and Asia makes London a natural home for international expansion for European start-ups,” said Mr Butcher.
“US investors looking to pick up cheaper bargains than in Silicon Valley much prefer to invest in UK businesses, which have all their documentation in English.”
He also pointed towards the success of M&A and flotation in the City - with two firms already selling for a total of £610m.
Firstly start-up DeepMind was bought by Google, while Zynga bought games firm Natural Motion.
The introduction of the High Growth Segment on the London Stock exchange has also been useful to start-ups.
One of the first companies to use it, Just Eat, saw its shares soar – pushing its valuation above £1.5bn.
He added that the UK government offered a number of tempting offers to tech entrepreneurs, from entrepreneur-friendly start-up visas to added Entrepreneur’s Relief, making it a very attractive place for firms across the world to invest in.
A combination of these conditions and other factors are what has made London’s Tech City so strong. Strength that Mr Butcher says the city will maintain and build upon.
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