Ran: I believe #Brexit mainly will affect UK startups. While UK-based VC funds with GBP holdings lost 7–10% towards Euro/USD, I’m confident that they will continue to search for startups outside of the UK as actively as before. With that said, as far as I know, the majority of the bigger funds (Accel, Index, Balderton, Atomico, Felix, etc.) raised their funds in USD.
A potential future problem is EIF’s future involvement in the UK based funds they backed (Atomico, Notion, and other smaller UK based funds), while UK-based funds have British Business Bank that most likely will fill this gap.
Also, I assume that EIF’s total allocation to Early stage VC will remain the same, i.e. the same amount of funding will just be distributed to other funds in Europe.
I don’t think #Brexit directly will affect US startups — there are UK funds do US investments, but it is insignificant. But the indirect consequences could impact: there is a lot of uncertainty in general (banks in Europe, all craziness in China, etc.), and more uncertainty is what we need the least. We have used most of our ammunition to stimulate growth, i.e. extremely low interest rates are already in place, if things start to go down, they could go down fast, and we don’t have many tricks left to prevent it.
An event like #Brexit creates a lot of uncertainty — it could make the general confidence in the global economy to tip over to the wrong side I guess, and that would probably influence some VCs in the US to deploy even more carefully. With that said, there is a lot of fresh funds on the market, and valuations here in the US have already had a setback.
There is a lot of uncertainty at the moment, and nobody likes unnecessary.