Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

London's 'Tech City' may never be the same again after the coronavirus

London's 'Tech City' may never be the same again after the coronavirus

London’s reputation as one of the world’s major tech hubs is in jeopardy as a result of the coronavirus pandemic. “The downside for London might be the dwindling of ’serendipity,” said Harry Briggs, a venture capitalist with Omers Ventures. The lack of tech workers in and around East London’s Shoreditch neighborhood isn’t going unnoticed.
London’s reputation as one of the world’s major tech hubs is in jeopardy as a result of the coronavirus pandemic.

At the start of the last decade, a cluster of start-ups began to form around East London’s Old Street roundabout (technically a gyratory system), leading the area to be nicknamed “Silicon Roundabout.”

Then-British Prime Minister David Cameron latched onto their success and branded the area in and around the hipster Shoreditch neighbourhood “Tech City.”

Since then, London’s tech ecosystem has expanded to other corners of the capital including King’s Cross and the West End. Today, tech companies and their employees span the entire city.

Homegrown start-ups like DeepMind, Shazam, Revolut, and TransferWise have become well-known names in their respective industries, while U.S. tech giants including Amazon, Facebook, Google and Apple have also set up huge new offices for thousands of staff.

But the coronavirus pandemic is threatening to change the landscape.

Given the very nature of their work, tech firms can often embrace remote working far more easily than companies in other industries.

“The downside for London might be the dwindling of serendipity,” said Harry Briggs, a venture capitalist with Omers Ventures.

“Whilst Shoreditch never had it to Silicon Valley levels, the square mile between Shoreditch, Clerkenwell and Kings Cross has become Europe’s most serendipitous place for founders,” Briggs said. “You can’t go into Ozone (coffee shop), Granger & Co (restaurant) or Google Campus without bumping into several VCs or fellow founders.”

Meanwhile, events held by the likes of tech network Founders Forum, VC firm Seedcamp and start-up factory EF (Entrepreneur First) have all gone virtual.

“Now, the meetings and events are happening on Zoom, many founders have temporarily migrated to places like Lisbon, and the VCs are working from their country ‘cottages,’” Briggs said.

Many of the city’s start-ups have been based in flexible coworking spaces, but future of these hubs also hang in the balance.

This month, TechHub, an office space provider that has housed hundreds of start-ups over the last decade, filed for administration. Founded in 2010 by Elizabeth Varley and TechCrunch Editor-at-Large Mike Butcher, TechHub said it lost three-quarters of its revenues as a result of the lockdown.

“Elements of Tech City are being hit hard, like co-working spaces,” said Eze Vidra, managing partner at Remagine Ventures and a former tech investor at Google Ventures. “But from a start-up and VC perspective, I am being regularly reminded that some of the best companies were created in times of crisis. I am seeing great companies, effectively raising rounds and gaining traction.”

The lack of tech workers in and around Shoreditch isn’t going unnoticed. Entrepreneur Rich Pleeth told CNBC that The Griffin pub in Shoreditch was practically empty when he visited last Thursday. “That used to be the beating heart,” he said.

“We’ve seen Covid make more decisions than a CEO ever could on working remotely,” Pleeth said, adding, “Why go back to the office if you have to sit on your own with no colleagues anywhere near you?”

These problems are in no way confined to London’s tech ecosystem. On the other side of the Atlantic, San Francisco is experiencing a similar thing, while there are now over 13,000 empty apartments in Manhattan. Major cities are turning into ghost towns as people opt to work remotely from less densely populated parts of the world.

“London will survive -it always does -and people will find new ways to connect -we always do. But Tech City’s role as a hub of serendipity may have had its peak,” said Briggs.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
×