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
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×