Rajat Khare IIT Delhi, Luxembourg

Rajat Khare and Christophe Bavière talk about Brexit and its impact: 

Despite the speculation of economists and fund managers over the UK’s viability as an investment destination, the United Kingdom has attracted over $7.7 billion of investment through funds and business ventures.

Irrespective of the recent turmoil caused by Brexit, the United Kingdom has managed to pull in quite a lot of investments. It also maintained its position as a leading magnet for talent. London-based venture capital firm Atomico mentioned in its recent report that the United Kingdom continues to be a top destination for technical talent − although it some of its shares was lost to neighbors Germany and France.

2017 was a phenomenal one for young businesses and startup.  With the amount of VC financing in Europe breaking records, even as that capital was spread among fewer deals. And throughout the continent, the VC landscape was littered with familiar names as well as new names, coupled with the brouhaha over AI and its associated fields.

Even as investment surges, optimism in the British startup scene is still low in comparison to other European nations which have come up with a renewed entrepreneurial spirit. France has introduced its own tech-visa, Germany under Angela Merkel, has had a definitive growth of startup in Berlin.

Several things depend on Brexit’s current predicament, both for London businesses and European startups. Data from Balderton Capital, a Europe-focused VC fund establishes London as Europe’s startup capital in 2016, in terms of capital invested, and the number of startups.

As for all-around investments in the continent, European investors accounted for 56% of projects in Europe. While US companies remained Europe’s biggest investors, European companies banded together were the biggest source of the continents cross-border flows (56%), with German, British and French companies in the bandwagon.

In 2016, the percentage of investors rose by 25%, where their companies launched 297 FDI projects in Europe. This was in spite of the fact that Chinese investments were switching from the United Kingdom towards Germany, France, and other continental destinations.

Among a panel of investors, those who have already invested in Europe are markedly more confident about the future of the European Union (69%) than those who have yet to invest here (45%).

Rajat Khare, the founder of Boundary Holding, a fund based out of Luxembourg, stated, “The environment in Europe is justifiably volatile. This could bring an unprecedented damage to the startups in Europe. At the same time, development initiatives could prove to be an opportunity for cities, countries, funds, and investors to invest in undervalued assets, and build spheres of unprecedented tech development”

“With Brexit, you are recreating borders in a market that is already perceived by (non-EU) foreigners as a complex one,” says Christophe Bavière, chief executive of Idinvest Partners, a private equity firm focused on Europe.

With all that said and considered, Europe could certainly prove to be a proverbial gold mine for investors. And while investors would look to leverage the continent’s undervalued grip on the world’s tech sphere, developments after Brexit could manifest itself into a plethora of opportunities by 2019.

3 COMMENTS

  1. We still don’t know what the impact will be, because we don’t know what type of relationship the UK wants with the EU. Just lots of vague statements

  2. Certainly, Europe has turned to be a magnet for investors. The developments taking place after Brexit will bring along a plethora of opportunities.

  3. I disagree. EUs current predicament financially, and the possibilities that AI presents could create a strong market dynamic – with investors and governments vying for the money. Citizen AI and Gdpr are some of EU s major changes. How could one not notice it?

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