Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Monday 09 January 2017 12:12 pm

The UK’s tech entrepreneurs have finally recovered from the Brexit shock

By: Lynsey Barber

Add as a preferred source on Google

It looks like the UK's tech entrepreneurs have finally recovered from the shock result of the referendum in which they overwhelmingly supported remaining in the European Union.

Just under half (49 per cent) of the more than 2,000 people working in tech and digital, including founders and chief executives, surveyed by Tech City UK are positive about business for the year ahead, compared to just eight per cent polled in June after the vote.

Positivity for the year ahead improved in the capital, with 35 per cent now expecting things to improve compared to just six per cent in June, though the bounce back was less pronounced than that experienced nationwide.

Read more: The tech revolution – not Brexit – will reshape the face of London

Tech City UK chief executive Gerard Grech said the results "reflect the resilience and underlying strength of our digital sector, which continues to grow and create jobs at a far faster rate than the wider economy".

The tech sector has had a strong run since the Brexit vote with multiple mega-deals securing its status, including Softbank's multi-billion pound deal for UK chipmaker ARM and travel startup Skyscanner being snapped for £1.4bn.

It comes as new data reveals that 2016 was a record year for tech deals in the UK with more than 4,000 M&A deals and private placements signalling a rise of more than 40 per cent on the previous year.

The data from GP Bullhound also indicated a decline in deal numbers in the second half of the year after a stellar start to 2016. The figures were still up year-on-year, however.

"The year just past was one of shocks and surprises but the economy overall has held up remarkably well. For the tech sector, however, the power to transform lives has not disappeared because the country voted to leave Europe," said BGF Ventures partner Simon Calver.

Balderton Capital partner Suranga Chandratillake added that there was still uncertainty and challenges remained. In particular, around hiring skilled people, "there comes a point where you have to embrace the uncertainty and look for opportunities in the turbulence," he said.

"If businesses are under pressure they will be keen to cut costs and streamline operations, to find new ways of doing things more efficiently. This is exactly what the most successful tech businesses are great at doing," he said.

Read more: Another British tech firm has been bought by a foreign company

Meanwhile, startups are now choosing to look on the bright side of the country's decision and find opportunities.

"We know there's a lot of uncertainty, but we're also confident that we can act faster than larger companies if things do change, so see uncertainty and change as an opportunity to grow, rather than something to be afraid of," said Aron Gelbard, founder of the flower delivery firm Bloom & Wild.

Fintech startup GoCardless's head of legal Ahmed Badr said: "We're hiring for lots of positions right now and are not seeing any decline in interest in working here."

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Tech

Trending Articles

  • How the boss of Zilch became UK fintech’s power broker

  • Deloitte warns of ‘challenges ahead’ for European football despite €40bn milestone

  • Coty Announces Agreement With Kering for Early Transition of Gucci Beauty License

  • Modon’s Hudayriyat Golf Estates Sets UAE Record With More Than AED 13 Billion in Sales Within Days of Launch

  • Farage quits to stand in ‘people versus establishment’ by-election

More from City PM

  • ‘Streets ahead’ – London aims to wear the legal AI crown

    Legal
    GettyImages 2244121938 displaying a professional business meeting with diverse executives discussing strategic plans in a ...
  • Asian markets sink again as tech sell-off reignites on Wall Street

    Markets
    Abrdn's Asia Dragon has recorded chronic underperformance in recent years.
  • London Tech Week day two: Talent alone won’t be enough

    Opinion
    Getty Images gallery showcasing recent business trends and innovations in technology with diverse professionals collaborating
  • London Tech Week day five: A week that gave me confidence in the UK tech ecosystem

    Opinion
    Experts discuss innovation at London Tech Week 2026 panel with diverse tech leaders engaging in insightful dialogue.
  • London Tech Week day four: Tech still cares about diversity

    Opinion
    Attendees networking at London Tech Week 2026 showcasing innovation and technology advancements
  • Half time: London market lags as rivals across the Atlantic hit fresh highs

    Markets
    The FTSE 100 is predicted to have its best year since 2009.
  • London Tech Week sums up everything wrong with UK tech

    Opinion
    Attendees at London Tech Week 2026 conference networking and discussing innovations in technology and business
  • As it happened: Stocks slide despite tech and data boost; Oil falls after OPEC+ ups output

    Markets
    Samsung has missed earnings expectations

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy