Brexit deal: What Start-ups Need to Know
On 23 June 2016, despite the betting odds being largely in favour of “Stay”, the UK decided to leave the European Union. Four and half years later, we finally know what this means – or at least have a guiding framework as several items still need to be worked out. For those of you who need a reminder of the complex chain of events triggered by the results of the referendum, I've included a full time line up until the trade deal was agreed on 24 December, 2020 below.
In the meantime, let’s go back to May 2016. Ahead of the referendum result, Accel published a post discussing the potential implications of Brexit for start-ups. Then, the expert views on the outcome for the UK were fairly negative. In one of the most comprehensive polls of experts (FT poll of more than 100 economists in Jan 2016), more than75% thought Brexit would adversely affect the UK’s medium-term economic prospects; only 8% thought Britain’s economy would benefit.
Back to today: were these predictions accurate? Did the deal reached on 24 December negatively impact the tech ecosystem? In 2016, we highlighted five key areas which could have a major impact on start-ups: freedom of movement for EU and UK citizens, Fintech regulation, EU R&D funding, data privacy and currency impact. Let’s have a look at where we landed.
Freedom of movement
For EU founders or start-up employees already living in the UK, the changes are minimal. EU (Read more...)