DataBrexit: tech and startups say NO

foto da The Guardian

Brexit. The word itself is enough to explain but for those who are not familiar with the term, it is an abbreviation of “British Exit”. From what? From the European Union. On June 23 there will be a referendum and 64.597.000 brits will have the power to choose whether to stay in or out. Tons of arguments, different points of view, but what would happen to the tech industry, and especially to startups if Brexit happens?

London: a multicultural startup hub

In London’s tech and startup sector there is no doubt: the answer is NO.  According to a survey of the Tech London Advocates, 87% of advocates want to remain in the EU, 74% believe Brexit would make it harder for London tech firms to attract investment and 70% believe Brexit would damage London’s reputation as a world-leading technology hub. Big numbers and according to Gary Stewart, UK director of Wayra (startup accelerator) “Startups will always go to places where they’ll have the best possibility of success”, and London, according to Christian Hernandez, managing partner at White Star Capital, is the best place to access capital “it might be less painful for founders to simply grow their company from Estonia or Stockholm or wherever they are — and have people like me fly out to find them”.

The spotlight is on London, because the City is the home of many different talents coming from all over the world. With more than 200 languages spoken around the streets, how could London make it hard for foreign talents to go there and try to make the difference?

Melinda Nicci, founder and CEO of London-based startup Baby2Body, says that her “tech team are Slovenian my chief operating officer is a Brazilian, my editor is from the U.S. and our chairman is German…If you want the best people you need to be able to draw from the largest pool of talent. And there is a massive shortage of British tech people”.

EU regulation, who will pay the price?

Besides talents, there is the matter of regulations. Currently, all British startups are following European standards, especially when it comes to data, crucial for any new business and currently tight to the General Data Protection Regulation. This cannot be ignored, especially since there is no real alternative that the “Yes” supporters are giving. And what about intellectual rights? There’s a European legislation regulating them too, and to be out of the EU mean to create another registry which means just one thing: startups will pay the price, high ones according to Arty Rajendra IP litigator at Rouse, a global IP firm “Those rights will have to be reregistered in the UK, which is an initial cost that most big companies will just swallow but smaller companies, it will be a pain for them.”

And allow me to say something: there is the dream factor. A startupper is a dreamer. And London, with more than 600,000 new businesses, is the city where dreams can come true. Ranked by European Digital City Index the number one city in Europe for supporting startups and scale-ups, Brexit is the opposite of this. Against progress, against multicultural environments and ideas, against freedom, in a moment when building barriers is just another way of making things worst. And remember brits Not in this land alone / But be God’s mercies known / From shore to shore / Lord make the nations see / That men should brothers be / And form one family / The wide world over.