London-based venture capital firm 83North has said it may be forced to look at investments outside the UK, with the government refusing to commit to the British tech sector as Brexit negotiations begin.
83North, formerly Greylock IL, have just closed their largest fund yet to the tune of $250 million. However, because of the UK’s decision to leave the European Union, it may need to focus its investments on other European tech hubs.
Laurel Bowden, a partner at the firm, told CityAM: “As we look to the future, the UK’s exit from the EU will accelerate activity in European tech hubs outside the UK. We believe this presents a big opportunity for venture funds, like 83North, that are already well-established in the wider European region.”
On the subject of the British government’s failure to reassure the tech industry of its commitment, she asked, “Why wouldn’t you just say you want to remain the tech hub of Europe? And, that will continue?”
The firm’s total assets under management stand at around $800 million, according to a company statement on Wednesday. 83North were an early backer of Just Eat before it went public, as well as payday lender Wonga and online retailer notonthehighstreet.com.
However, other signs show that investor interest in the UK remains strong. According to a study released by Tech City UK last month, venture-capital firms put £6.8 billion pounds into British start-ups last year.