London’s Tech City Is Booming In 2016
London’s digital sector is the new tech capital of Europe, with £1.6bn was invested into London’s technology companies in 2015
Since Tech City UK was launched in London in 2010, the number of technology firms located in the capital has grown from 250 to 5,000 digital businesses. These include companies such as Google, Amazon and AirBnB.
The technology industry in London is currently booming. With 3,000 companies located in every square km, our capital is a worthy industry competitor to California’s renowned Silicon Valley. However, two other European rivals exist in the form of Berlin and Amsterdam.
London’s Investment Successes
London & Partners reports in its latest press release that tech companies in London have received record investments totalling £1.6bn during the last year. This exciting figure contributes an enormous 63% of the UK’s total investments for 2015 which reached an overall sum of £2.5bn. Online food delivery company, Deliveroo was the largest recipient of individual investments, which amounted to £46 million. Indeed, it is online companies that appear to be most in demand at the moment, as the amount of software developers is also at a record high. However, it is important that London companies recognise that they are paying these developers and technology experts much lower salaries than their counterparts in California. Tech-industry job site, Hired reveals that American salaries are an average of 30%, but sometimes as much as 50% more than the equivalent of a London-based tech worker in the same role. UK companies should address this problem if they don’t want to lose the best workers to the States in future years.
Berlin’s Legislation Issues
Berlin puts up a good fight as London’s technology competition, as every 1 job in 8 is based in the capital’s digital sector. A new startup company is created every 20 seconds in Berlin and the city patents three times more than London does. New businesses in the city received more than £1.7bn last year in funding as financiers are becoming more comfortable with accepting lower interest rates and higher amounts of risk. However, the German capital’s largest problem is with its red tape. Legislation issues hold Berlin back from reaching its full potential as various tax reduction proposals are still in the discussion stages.
Amsterdam’s Fast Internet
Amsterdam boasts the fastest Internet connection in the whole of Europe, which is seen as an extremely attractive factor for forward-thinking technology companies who want to grow. The Dutch digital capital is a sensible place for tech firms to operate in, as there are currently around 165 investors who are actively looking to engage in funding new startups. A massive 294 firms in Amsterdam received funding from investors in 2015.
Although the future looks bright for London’s digital sector at the moment, it is important that city companies work hard on their own marketing campaigns in order to keep attracting the best skilled workers and technology graduates in London. In particular, companies need to invest in their London SEO campaigns in order to maintain a strong online presence and stay ahead of their competitors so that they can continue to attract customers and quality investors in 2016.