A venture capital fund with billions of dollars at its disposal is advising non-UK technology startups to consider shunning London as a possible outpost now that the UK has voted to leave the European Union.
In a Brexit note to non-UK startups, Index Ventures wrote: “Before the Brexit vote we would have advocated wholeheartedly for London as a European HQ.
“Today, we recommend that companies also consider Amsterdam, Berlin and Dublin, in addition to London, for their European bases.”
The venture firm, which has invested in the likes of Twitter and Dropbox in the US, said that startups in heavily regulated industries like financial services should be particularly careful about where in Europe they expand their operations, adding that financial services may no longer be able to conveniently passport their status from the UK across the EU.
Officials in countries like Ireland and Switzerland are already preying on some of the UK’s bestknown fintech companies.
TransferWise CEO and cofounder Taavet Hinrikus said officials in the aforementioned countries have contacted him to see if TransferWise is interested in starting or moving operations to their shores.
Earlier this week, a van was spotted driving through London with a billboard that read: “Dear start-ups, Keep calm and move to Berlin.”
The note was published on the Index Ventures website on Wednesday after a number of US entrepreneurs started asking questions about what Brexit means for their businesses.
Index Ventures added: “There is no denying that the referendum result has added uncertainty for entrepreneurs, but this doesn’t change our view that a great team, pursuing a big market with an inspired product vision can create value that outweighs macro risks by orders of magnitude.”
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