FAQ: Brexit for Non-Brits
The Impact of Brexit on Non-UK Startups
In the wake of the UK’s vote to leave the European Union, the UK and the rest of the world have been trying to grasp what’s next for the world and what “Brexit” will actually mean for business.
To address a number of questions our U.S. entrepreneurs are asking, we have compiled our thoughts on the practical implications for international startups who are either considering coming to Europe or growing their existing European operations.
As we’ve recently written, we’re still bullish on Europe. 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.
There are no immediate changes to the way you do business in Europe. So far, no UK laws or regulations have changed and all EU rules, regulations and trade agreements relating to the UK remain in force. They will remain unchanged for at least two years.
London retains its role as a key tech hub in Europe. The importance of London may diminish over time (especially in financial services), but if this happens, it will happen gradually. For the foreseeable future – we think at least the next 5 years – London will remain the preeminent European base for startups.
Be flexible as you choose where to expand internationally. London was previously the obvious choice for a European base – and it may still be for many startups. However, we advise that you also consider other locations, such as Dublin, Amsterdam and Berlin and remain nimble enough to switch locations if better choice becomes apparent.
Stay focused. The whole topic of Brexit can become an unnecessary distraction. For most startups, its impact will be minimal in the short term compared to other decisions you will take for your business