When it comes to tech, London is a hotbed of activity in Tech Firms. Despite the current political climate, this is a place where people want to live and work. There are a number of incentives for relocating to the British capital, including the lowest corporation tax rate among the G7 nations. The city is a hub for many international firms, from Silicon Valley unicorns to German green energy companies. But, in spite of the buzz, it hasn’t always been a land of opportunity for the uninitiated.
One company that has done particularly well in London is Signal AI, a data analytics company that trawls massive amounts of open data and spits out the interesting stuff. Another, Snowflake, helps businesses store their data in the cloud. A third, HubSpot, is a sales and marketing software firm that has expanded its European footprint.
Earlier this year, a company called Plan A, a German energy firm, announced plans to open an office in the U.K. This was the first time the company had done so, and it was an obvious move to bolster its already strong global presence. Currently, its headquarters are in Munich and Paris, but the company has plans for its first London office in the works. It offers an interesting take on green tech and energy efficiency, as well as automation technologies to help companies track and reduce carbon emissions.
Factor to consider
Of course, London isn’t the only city offering similar incentives. Many companies are relocating their HQs to the U.S., citing the Brexit vote as the main driving force. And, of course, it’s not impossible to imagine a scenario in which companies like Google, Microsoft, Amazon and Apple relocate their headquarters. However, the competition is stiff, and the location isn’t the only factor to consider.
It’s not the size of the company that matters. While the size of a company is certainly important, the quality of employees and their willingness to perform is the real deciding factor. Companies that are able to demonstrate a sound business model and financial stability are rewarded with incentives and benefits. For example, the government offers tax credits to companies that use research and development to drive their innovation.
The biggest question remains: will the UK’s thriving tech sector be able to sustain itself in a weakened economy? As a matter of fact, the country’s current outlook could see a reduction in demand for homes in the west of the capital. That’s not to say that a new wave of tech startups isn’t coming to London, but it may not be as big a deal as it once was. Regardless, the future of London as an attractive international business and commuting destination is bright.
The above are just a few of the notable cites in London’s tech sphere. As an international financial and business hub, it’s not surprising that the city has attracted the most foreign direct investments in tech in recent memory. In addition, the city has enjoyed a booming e-commerce sector, as well as a burgeoning digital media industry. Even with Brexit, London will continue to be a draw for firms large and small.