Research carried out by Pinsent Masons and Mergermarket has revealed that London is the most attractive destination for technology startups. The British capital was chosen by 29 percent of the private equity or venture capital professionals polled as the most attractive destination for tech startups. Read on for the highlights of the research, which sought the views of 151 of Europe’s senior tech executives to produce the report. Respondents were from the UK, Germany, France, Denmark, Norway, and Sweden.
- London was voted as the best destination for startups by 29 percent of respondents, with access to funding, depth of talent and its role as a leading financial hub being cited as reasons for its top position in the list. Eike Fietz also cites London’s “attractiveness as a lifestyle centre for innovators” as a reason for its success.
- Germany is considered the most attractive source of technology bidders, ahead of Britain, securing 27 percent of the votes. Explaining Germany’s strength, the report points to the country being at the “forefront of the Internet of Things, smart factories and the digitisation of manufacturing”, in addition to its having attractive factors such as low taxation and a favourable geographic location at the heart of the European Union.
- The UK and Ireland received 23 percent of the votes in terms of technology bidders, with the UK’s “favourable tax environment” for tech investment and a “mature venture capital and angel investment scene” cited as attractive factors.
- Berlin and Munich have the advantage over London of a lower cost of living, an important factor for startups. Berlin is considered the second most attractive city for tech startups, having been voted for by 20 percent of the respondents.
- Amsterdam achieves third position, voted for by 16 percent of respondents, with its liberal and “encouraging” tax policies, and “adaptive” nature singled out as being attractive to tech investors.
- Dublin polled 7 percent of the votes, although the city is recognised for fostering a business environment supportive of “a range of tech and innovative startups”.
- Paris which only received 2 percent of the votes is nonetheless viewed as a “hotspot for technology startups” due to its having easier market access and “the most advanced staff”.
- In addition to the report’s “league of attractiveness”, it also provides insights about the future for tech, including those technology areas which are likely to see the most significant growth. Startups are advised to “look to the cloud”, to “choose their location” based on the specialities of each area, and to “evaluate IP”.
Based on this illuminating report, it would appear that UK Chancellor George Osborne has achieved his stated aim of making the UK the “technology centre of Europe.” And from one tech VP, Matt Harris, the Senior vice President of Startegy and Corporate Development at Viewpoint, comes this glowing endorsement:
“The UK technology base is very good and it’s not just London… It’s a great country from which to establish extensions into other areas such as continental Europe, the Middle East and Africa”.
Want more information about startups? Check out this list of the best startup hubs around the world, courtesy of Virgin.