London's tech scene is a bright spot in Brexit darkness

"The B-word."

That's how Brexit was described at a recent Tech Nation panel on attracting international talent to the UK. It's no surprise: The nation's departure from the EU is a looming shadow over any discussion of Britain's economic future. And "Brexit" really does feel like something of a curse word, as stories mount about job losses, stockpiling, fleeing companies and other ill effects.

Those reports are worth heeding; as the news suggests, uncertainty around Brexit will continue to have very real economic repercussions. But, according to one insider, it's not all doom and gloom — particularly for London's tech scene.

"I see no reason to not remain bullish on London in the short-, mid- and long-term," says Daniel Glazer, the managing partner for Wilson Sonsini Goodrich & Rosati's London office. "Not only have the investment funds not been leaving London, they've been doubling down. There are more and more funds being raised every day."

As long as the money — and the talent — remains, London will still be a deeply attractive place to start and grow a business. "There's no better place in the world to start an early-stage tech company," according to Glazer.

When it comes to funding, the UK capital has already seen explosive growth. VC investment in London tech totaled $3.3 billion in 2017, up from a scant $100 million in 2010. And success begets success: The nature of UK investment is changing, as more operators from within tech — those who have built thriving startups locally or abroad — work to fund new efforts.

In the Brexit context, London has often been pitted against Paris, Berlin, and other European hubs in terms of tech success. Which city (if any) will steal London's crown as a tech capital? But Glazer suggests this isn't a case of winners or losers — and, in fact, Brexit has little to do with steady growth in the continent's burgeoning startup scenes.

"We were already seeing the rise of multiple European centers... I don't think the referendum, standing alone, has turned Berlin and Paris into tech powerhouses," says Glazer. The same "basic ingredients" that have ignited London's startup scene have also fueled growth across Europe.

"The motivation, or the incentive, to be entrepreneurial and build your own business are greater than they've ever been, at the same time that the barriers-to-entry are as low as they've ever been," he notes. "And the obvious places for those things to intersect are the cities."

This phenomenon is certainly not unique to Europe, as the lessons and network effects of Silicon Valley spread across the globe. While Northern California has a several-decades head start on its tech ecosystem, other regions, particularly outside the United States, are gaining ground. America's share of global VC investment has dropped from roughly 95% in the 1990s to just over half.

"In Europe, the most money is in London, and still, the most expertise is in London," Glazer explains. "The amount of money being raised for new funds in London, the amount of money coming in from overseas into London, those metrics are all very strong." And, "as long as there aren't undue barriers placed on tech talent moving to the UK," Brexit won't change that.

"Referendum or no, all the institutional advantages that London has had since 1066 still remain."