Diving into Silicon Roundabout
Interested in meeting other start-ups, collecting feedback, talking to investors and some wet and chilly London weather? If so, then this is the post for you, as it provides you with an overview of and suggestions on how to spend your day in the town with the red telephone boxes and its flourishing fintech scene!
I sometimes have days where I feel like I need to drink tea with someone, button my coat up all the way and can constantly smell lemon curd and ale. London and I have always had a special, romantic-naive relationship. I love British English, the houses, the bricks and at the same time, I can never quite get over the fact that a cup of tomato soup will set you back seven pounds.
My two favourite boroughs are Crystal Palace and Bethnal Green, and I have even spent an entire evening going to as many pubs called “The White Horse” as possible. It was a very long night.
Many start-ups value Berlin for its low cost of living, the tangible creative vibe, the arrival of more and more financiers and the active start-up scene. When I think about the state of my wallet after a trip to London, I don’t think the city’s appeal can lie in its affordability. The Guardian reported that average rent prices are currently approximately GBP 1500.
So, what is the deal with London’s start-up scene?
Will you meet the thinkers and influencers near Tower Bridge? Or in a snazzy, modern warehouse café somewhere in Hackney? Where are the points of contact and the networks? Where can I find the most exciting start-ups?
London — the headquarters of British financing
“What’s so special about London’s tech scene is that it’s transforming other industries — finance, fashion, advertising, it’s a collision of fields and disciplines which isn’t happening anywhere else.” Rohan Silva, the Prime Minister’s senior policy advisor and co-founder of Second Home, a coworking space in East London.
In 2014, the London start-up scene was able to generate venture capital worth EUR 1.35 billion while the first quarter in 2015 impressed us with a total of EUR 850 million, which is 2.5 times as much as in the same quarter in 2014. Once considered the most important industrialized nation in the world, industry itself plays a very minor role in the UK today. It accounts for less than 18 % of GDP. The largest sector of the British economy is occupied by financial services. London boasts the highest concentration of foreign banks in the world.
In terms of entrepreneurship, London has always had the edge on the rest of Europe. You´ll find more that 2.000 start-ups with about 48.000 employees in here, which may get attracted to the largest hotspot for start-ups in Europe. Also known as “Silicon Roundabout” London pays attention to the growing, vibrant tech scene. The government around Prime Minister David Cameron has introduced tax incentives, so that start-ups need to pay a lower tax rate (instead of 28% only 20% of taxes). You´ll also find the “Entrepreneur Visa” to attract talented staff from all over the world and make it easy to employ them in the UK.
London can still pride itself on a variety of global superlatives: nine million people live here and communicate in 300 languages. This fact makes it the largest European metropolis. Also, London is home to the highest concentration of billionaires and one of the highest growth rates in terms of property prices: double digits every year. As precarious as it is to have a parallel world in London inhabited only by the super-rich, there is also an upside: capital for start-ups is definitely available. Rent in Silicon Valley is also staggeringly expensive with apartments for prospective founders starting at USD 1500. Nonetheless, many are still drawn there due to the simple fact that big deals are made where it is financially feasible.
“From our experience, if you are a good company with a good product, there is no lack of funding. Many of the entrepreneurs who have made money are now investing back into young businesses, and they are acting as mentors too.” Gerard Grech, chief executive of the organisation Tech City UK tells The Independent.
Moreover, almost every third Londoner has a migrant background and the multicultural melting pot is an enormous international pool of ideas thanks to the diversity of its components. Germany, on the other hand, is still grappling with problems such as bureaucracy and administration for example in distributing work permits. Robert Gentz , the founder of Zalando, addresses this issue in the September issue of Berlin Valley.
Something resembling a city guide
Let’s pretend I am randomly spending a day in London. I am interested in start-ups and like to know what’s going on in the international scene, I am a big fan of new ideas and wouldn’t mind bumping into a promising investment opportunity. How can I get the best out of my day?
1: Breakfast at Aubaine, 38 Broadgate Circle.
Did you sleep well? Then let’s get this day started. Your first port of call could be Aubaine near Liverpool Street Station: Every Tuesday, there is the Table Crowd Breakfast, a meet and eat for founders and potential investors. For GBP 20, you can indulge yourself in a tasty breakfast and enjoy the company of interesting and interested people. (By the way, the first White Horse can be found right round the corner at Appolt Street 1.)
2: Groupon.co.uk isn’t particularly far from here. The pretty unappealing building is located at 1 Swan Lane on the banks of the river. But, as the old saying goes, never judge a building by its exterior. A huge number of start-ups can be found further north in the Old Street-Kingsland Road-Commercial Street triangle. This is the main address for fans of the technology-oriented start-up scene. For more detailed information, I highly recommend the Tech City Map.
3: Co-working space
North-west of said triangle is net-works.london, a communal coworking space for business partners, founders and investors. A membership card is required if you want to spend any time here. For another GBP 20, you can purchase a space to work and enjoy the privilege of the private coffee shop. You will meet mainly Londoners here as monthly rent is a lot cheaper by comparison.
4: Lunch
Networking and reflecting is hard work. Which is why you should not forget about lunch. You are now faced with a multitude of options. You could meet that person whose acquaintance you just made for lunch in the bistro round the corner or use one of the London delivery services (for example Deliveroo or Lunchbox London). Or, at a pinch, that seven pound tomato soup.
5: The London Entrepreneurs Network, with more than 10,000 members unites the entire scene: those who wish to turn an idea into a business, those who have already done so, those who need funding, those who are looking for an investment opportunity and those who want to network, learn, or scale. At Rockastar Hub (3 Minister Court) you can simply pop in and let the people know who you are and what you want. The organisers write that they will schedule you in and have tea or coffee ready. Typically British!
So far, we have spent all day walking around town on foot. Time to choose something a little more comfortable. You could obviously hop on the tube or grab a cab, but the sharing community has also finally arrived in London. You are spoiled for choice: DriveNow and Uber are available, also Zipcar or Santander Cycle, if you prefer bikes.
6: Time to wind down.
Or are you up for something else? If so, check out up.co and see who is out and where they are. New and different events are listed every week. Party animals will naturally get their money’s worth. Remember to go to the pub earlier than you are used to, as everything closes at 3am. The East End is still famous for its dazzling nightlife and extraordinary clubs — where else are you going to meet the most flamboyant of all the party-goers?!? Personally, after such a long day, I would probably spend a nostalgic evening in the Postal Order Pub, far away from the chaos of the city, gathering my thoughts while drinking cider and playing bridge with old men. What can I say: I like a bit of old school feeling once in a while!
Three interesting numbers for you to think about: London has more than 300 (co)working spaces, more than 30 incubators and accelerators and more than 30 pubs called “The White Horse”.
Recommended reading: As an introduction, or to combat flight boredom, why not check out http://www.tech.london/ . The government does its bit for the start-up scene and if you are interested in economic policies, you will inevitably stumble upon the project cognicity.
The Wired enjoys publishing lists — here is a http://www.wired.co.uk/magazine/archive/2015/09/features/100-hottest-european-startups-2015-london
London, I am coming for you!
Want to find out more about me, the blog and berlin-based insights into the European start-up scene? Come and visit me and my Companisto Blog! I´ll be happy to see you there!
Cheers, Cristin
About Companisto:
Companisto is the market leader in equity-based crowdfunding (also called “crowdfunding for start-ups” or simply “crowdfunding”) in Germany, Austria, and Switzerland and one of Europe’s leading crowdfunding platforms. Equity-based crowdfunding means that many people team up to provide venture capital to a start-up or growth company. Investors — also called Companists — can make an investment of their choice in the start-up and, in turn, participate in the profits and increases in value of the start-up, or they receive fixed interest payments (in the case of venture loans). To date, Companisto has more than 46,000 registered investors who have invested a total of over €25 million in 51 financing campaigns for start-ups and growth companies.
