Brexit ‘poses threat to technology investment’

Tech hub: Old Street roundabout
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Bosses in London’s vital tech sector today revealed that Brexit fears were strangling investment and holding back the capital’s newest success story.

Rich Pleeth, founder of Sup, an app that shows which friends are nearby, said investment was being jeopardised for some by the prospect of a possible Brexit after next week’s referendum.

He said: “My company had a German investor withdraw an offer because of the referendum. Without that investment I can’t grow my business and hire people as fast as I need to.”

Michael Seres, of 11Health, which makes intelligent medical products, said: “I have an investment round coming up and am looking to hire 14 people in the next two years. I can’t make those decisions if my access to markets and the regulation in this and those markets is unknown.”

The warnings came days after David Cameron predicted that London would feel a “huge oomph”, with investment and confidence returning if the country voted to Remain next week.

A survey of technology business leaders found that three quarters think quitting the EU would damage their ability to grow and trade. Some 74 per cent thought it would be harder for cutting-edge developers to attract investment, found research by Tech London Advocates, a network of 3,000 figures in the field.

Only one in 10 thought investment levels could be sustained at current levels and eight in 10 felt Brexit would make it tougher to fill staff shortages.

Russ Shaw, founder of Tech London Advocates, said: “Brexit is a major risk to the investment and jobs in the British technology sector.

“The tech sector very strongly supports the UK’s membership of the EU because until now it gives access to more customers, more investment and more talent.”

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