Everyone should be concerned about the impact of Brexit in the short and longer terms. So much for non-raiding policies or prohibitions against nations, states, regions and communities taking advantage of natural disasters, wars, and other major disruptive events in other places. Read this article from IEDC about how Germany aims to capitalize on the Brexit vote.
Earlier this month, ED Now reported that Paris was positioning itself to attract London-based financial companies should Britain opt to leave the European Union. Now that Brexit looks like a reality, Berlin also is setting its sights on British businesses – specifically the tech sector (BBC).
Berlin has emerged as one of Europe’s leading tech cities (Wall Street Journal). In the past two years, venture capital into Berlin has edged out London by $2.1 billion to $1.7 billion respectively. “We had competition in the last two or three years between London and Berlin,” said Cordelia Yzer, Berlin Senator for Economics and Technology, who has been courting U.K. startups and venture funds over the past few days. “I am convinced that more funds will now make the decision in favour of Berlin.”
Berlin offers tax incentives and grants for angel investors and public funding for certain startups that struggle to find private financing (Politico). Berlin also has a clear cost-of-living advantage over London, one the world’s most expensive cities. The German capital could conceivably leverage its affordability much like Provo, Utah, or Lincoln, Neb., have done to attract entrepreneurs out of Silicon Valley.
Of course, London is Europe’s financial capital, which is a clear advantage to retaining venture capital groups and the entrepreneurs who seek their support. But some fear this advantage will erode if banks relocate to EU financial hubs such as Paris, Frankfurt, Dublin, or Milan.