A key figure in Britain鈥檚 tech industry has warned that Britain鈥檚 Brexit breakdown is harming the sector.
Giles Derrington, head of Brexit policy at trade body techUK, told a Westminster select committee that investors are beginning to shun UK tech start-ups amid the uncertainty.
The two candidates to become the nation鈥檚 next Prime Minister, Boris Johnson and Jeremy Hunt, have both said leaving the European Union without a deal is a possibility.
Derrington said a no-deal Brexit would threaten the UK鈥檚 reputation as the 鈥渙bvious global hub鈥� for tech investment outside the United States and that the sector is already suffering 鈥渞eputational damage鈥�.
鈥淟ots of people who work in tech are very internationally minded. What we are seeing, rightly or wrongly, is the reputation that the UK is somehow closing itself off from the rest of the world,鈥� he said.
A recent KPMG report revealed a 57 per cent drop in the number of successful venture capital deals in Britain in the first three months of 2019. However the value of the deals was similar to that seen in the first three months of 2018, at 拢1.19 billion.
Derrington said Britain鈥檚 VC funding is down 20 per cent on two years ago, while investment in nearest rival Germany has climbed 30 per cent in that time: 鈥淭he gap is closing.鈥�
However he added: 鈥淭ech is still a growing sector; the UK is still a very good place for tech companies and therefore there will still be tech investment.
鈥淭he question is the scale and level of that investment compared to what it would have been.鈥�