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Guide to the London Startup Ecosystem

130 points by Ozzie-D 7y ago

Gys 7y ago
> Last updated on 16 July 2019. Startups of London is currently in beta and all details are subject to change. © 2019 Startups of London No changes in the past 6 months, must be a sign of being a very mature ecosystem ;-)
- Gravityloss 7y ago
  I guess it shows the benefits of operating in a country with such long history of good governance. Even if it's a tad expensive.
- Ozzie-D 7y ago
  Hey, thanks for pointing that out. The post was actually published today. I had to Google search to find where that was written. It was updated later but must have been put there manually when first written. Fixed. Thanks.
brm 7y ago
Random aside but this seems like a decent place to ask it... Does anyone know what's going on with the Startup and Innovator Visas? Most of the endorsing bodies don't even have a process set up yet and the ones that do only endorse their incubatees or make you subscribe to their accounting services. Anyone have any insight? Are any endorsing bodies actively approving Startup and Innovator visas? If I'm an entrepreneur with £50,000+ to invest in my internet startup and I want to locate it in London and I don't want to go through Techstars, what is supposed to happen? Because as far as I can tell, the process of bringing a startup to London is currently very broken. /endrant But seriously? Anyone have any success or advice?
- toyg 7y ago
  Dude, don’t... the whole visa sector is being overhauled as part of Brexit. You likely won’t get any clarity for a year or more, and if you do there is little guarantee that it won’t change in 12 months time.
- kmlx 7y ago
  yes. here's an overview: https://www.gov.uk/start-up-visa https://www.gov.uk/start-up-visa you can go through the steps and find out more. here are the bodies that are endorsed for this type of visa: https://www.gov.uk/government/publications/endorsing-bodies-start-up/start-up https://www.gov.uk/government/publications/endorsing-bodies-... this might change after leaving the EU, but the requirements will most likely be reduced if anything.
  - deleted 7y ago
    [deleted]
- thruflo22 7y ago
  Looked into this in detail recently. There is no volume of applications atm but it is possible. Can connect you to a colleague who did the research —- thruflo at gmail.
- threeseed 7y ago
  Boris has made it clear that they want the UK to move to an Australian style points system for immigration. And then having the Startup/Innovator visa on the side. The problem is that (a) existing startup visa is terrible which gives you a hint that they just don't get it and (b) how are you supposed to attract non-UK talent ? There have been truly scary immigration incidents at the Home Office e.g. Windrush which doesn't give anyone confidence that they particularly care what happens to immigrants. And we are seeing the same pattern now with Brexit where they were looking to bargain with citizens rights.
Qasaur 7y ago
Having some experience in the London startup ecosystem, I think London is a great place for founders and investors, but I really doubt the value proposition for startup employees. London I think is one of those cities that crystallises how bad the general economic state of the world is, and this has been dramatically more pronounced in recent years due to extremely loose monetary policy and quantitative easing among global central banks which funnels money directly into the financial, insurance, and indeed technology (through VC) industries. Broadly speaking, I think there are three categories of hidden, but segregated nonetheless, socioeconomic groups in London, and this has a dramatic effect on quality-of-life and also general conditions within startups. - The wealthy owners and marshallers of capital: these are your VCs and investors, as well as everyone else that isn't in tech but are closely related including foreign oligarchs. Some startup founders could probably be categorised in the lower-end of this group, as well as staff at financial service firms (investment banks, private equity funds, hedge funds etc.) including investment bankers and others. Quality-of-life is stellar due to very high compensation and/or acquired wealth. - Support staff to the above: software engineers including many CTOs fall under this category, as well as people on the lower-rungs of the financial and insurance industries. Quality-of-life is generally good, but you are basically detained under golden handcuffs, and you will never earn the same kind of compensation as the marshallers of capital. Software engineer salaries are generally capped at around £150k if you're a lucky, with very few exceptions (HFT firms etc.). Entry-level salaries start at £30-40k, which is atrocious for a very expensive city like London and you will probably have to flatshare with others to make ends meet. - Everyone else. What is important to note here is that there is a very implicit status-ranking in these groups, and software engineers particularly are not respected any where close to the level they are in the United States as they are not considered members of the first group. This, as you can imagine, has very severe effects on the level of compensation and the general working conditions that you can expect as an engineer as you are not deemed deserving of more compensation since you are after all "just an engineer". This is also why stock options and other equity compensation schemes are not as popular in London as they are in the Bay Area. Software engineers are considered support staff rather than integral contributors to the success of a technology business. This social segregation, as you can imagine, also has effects on the social cohesion of the city, and I think the recent increase of crime in London is a direct consequence of the alienation of the third category of people due to the flood of liquidity from the first category, which drives up salaries for the second group of people (and thereby cost of living in London), and prices everyone else out. Most of Europe suffers under this kind of segregation, and I presume it is partly a consequence of antiquated social structures that were more prevalent during the 20th century but haven't really modernised to align with the interconnected and meritocratic reality of today. I believe this is the primary reason why compensation for software professionals is so low in Europe compared to the meritocracy of America (but even this is changing with implicit filters such as Ivy League degrees etc.). Most global cities have elements of this as well, but I feel the divide and indeed social inequality is very pronounced in London and is becoming worse by the year, which is among the reasons as to why I left the city for greener pastures.
deleted 7y ago
[deleted]
threeseed 7y ago
I can't imagine why anyone would bother starting a new company in UK. Brexit is looming and it is an almost certainty that a no-deal will happen. (UK wants it and EU won't be able to get unanimous agreement from all member states' and their parliaments). And in a no-deal Brexit companies will have to ensure EU data sovereignty which means duplicating infrastructure in the EU anyway. Not to mention all of the complexity around tariffs and digital/internet taxes. Being in the UK you get all of the negatives of the EU without any of the benefits.
- thefounder 7y ago
  UK will get a deal from Trump and will compete with Silicon Valley. Not to mention it can expand within the old colonies(i.e India, Africa, HK) maybe even get a great deal from China. EU is obsolete just like NATO! PS: I don't really believe this stuff but this seems to be the plan.
  - chipperyman573 7y ago
    I don't really think that reasoning makes much sense... >UK will get a deal from Trump and will compete with Silicon Valley Why would the US government offer a deal that brings up a major city to compete with one of its own? >Not to mention it can expand within the old colonies Most of those were given up in the last 10 or so years or so, and most of their "citizens" have no real allegiance to the crown. And anyway, the UK is already better off than most of those countries already, so they'd have to pull the new county past wherever the UK already is. >maybe even get a great deal from China Maybe I'll get a great deal from china if I renounce my US citizenship but there's no reason to believe that's the case (plus, china will want to benefit from the deal somehow...)
  - marcinzm 7y ago
    The UK is negotiating from a weak position since it's about to lose a lot in a no-deal brexit. The UK politicians at the same time need to show some kind of post-brexit win. That's pretty much a guaranteed way to get a horrible deal with someone that can be just barely spun to make enough voters not notice how bad it is (ie: like brexit itself). edit: Although China is plausible, as in China spending 10 years draining the UK of any worth it can before discarding the husk that remains.
twic 7y ago
Has anyone heard of any of those "good / reliable consultants, experts, mentors"?
- jamedjo 7y ago
  One of the founders listed elsewhere on that page was a mentor on an accelerator I took part in. We went over our business in depth, he eventually became a supplier to us, then we became his largest customer. One day he abruptly stopped providing the service, and then relaunched his business trying to copy us instead. We out executed, but I'd advise caution with mentors. Some were great help, this one was malicious.
  - Ozzie-D 7y ago
    Would you be comfortable sharing the name?

130 points by Ozzie-D 7y ago

Gys 7y ago

> Last updated on 16 July 2019. Startups of London is currently in beta and all details are subject to change. © 2019 Startups of London No changes in the past 6 months, must be a sign of being a very mature ecosystem ;-)

Gravityloss 7y ago
I guess it shows the benefits of operating in a country with such long history of good governance. Even if it's a tad expensive.
Ozzie-D 7y ago
Hey, thanks for pointing that out. The post was actually published today. I had to Google search to find where that was written. It was updated later but must have been put there manually when first written. Fixed. Thanks.

brm 7y ago

Random aside but this seems like a decent place to ask it... Does anyone know what's going on with the Startup and Innovator Visas? Most of the endorsing bodies don't even have a process set up yet and the ones that do only endorse their incubatees or make you subscribe to their accounting services. Anyone have any insight? Are any endorsing bodies actively approving Startup and Innovator visas? If I'm an entrepreneur with £50,000+ to invest in my internet startup and I want to locate it in London and I don't want to go through Techstars, what is supposed to happen? Because as far as I can tell, the process of bringing a startup to London is currently very broken. /endrant But seriously? Anyone have any success or advice?

toyg 7y ago
Dude, don’t... the whole visa sector is being overhauled as part of Brexit. You likely won’t get any clarity for a year or more, and if you do there is little guarantee that it won’t change in 12 months time.
kmlx 7y ago
yes. here's an overview: https://www.gov.uk/start-up-visa https://www.gov.uk/start-up-visa you can go through the steps and find out more. here are the bodies that are endorsed for this type of visa: https://www.gov.uk/government/publications/endorsing-bodies-start-up/start-up https://www.gov.uk/government/publications/endorsing-bodies-... this might change after leaving the EU, but the requirements will most likely be reduced if anything.
- deleted 7y ago
  [deleted]
thruflo22 7y ago
Looked into this in detail recently. There is no volume of applications atm but it is possible. Can connect you to a colleague who did the research —- thruflo at gmail.
threeseed 7y ago
Boris has made it clear that they want the UK to move to an Australian style points system for immigration. And then having the Startup/Innovator visa on the side. The problem is that (a) existing startup visa is terrible which gives you a hint that they just don't get it and (b) how are you supposed to attract non-UK talent ? There have been truly scary immigration incidents at the Home Office e.g. Windrush which doesn't give anyone confidence that they particularly care what happens to immigrants. And we are seeing the same pattern now with Brexit where they were looking to bargain with citizens rights.

Qasaur 7y ago

Having some experience in the London startup ecosystem, I think London is a great place for founders and investors, but I really doubt the value proposition for startup employees. London I think is one of those cities that crystallises how bad the general economic state of the world is, and this has been dramatically more pronounced in recent years due to extremely loose monetary policy and quantitative easing among global central banks which funnels money directly into the financial, insurance, and indeed technology (through VC) industries. Broadly speaking, I think there are three categories of hidden, but segregated nonetheless, socioeconomic groups in London, and this has a dramatic effect on quality-of-life and also general conditions within startups. - The wealthy owners and marshallers of capital: these are your VCs and investors, as well as everyone else that isn't in tech but are closely related including foreign oligarchs. Some startup founders could probably be categorised in the lower-end of this group, as well as staff at financial service firms (investment banks, private equity funds, hedge funds etc.) including investment bankers and others. Quality-of-life is stellar due to very high compensation and/or acquired wealth. - Support staff to the above: software engineers including many CTOs fall under this category, as well as people on the lower-rungs of the financial and insurance industries. Quality-of-life is generally good, but you are basically detained under golden handcuffs, and you will never earn the same kind of compensation as the marshallers of capital. Software engineer salaries are generally capped at around £150k if you're a lucky, with very few exceptions (HFT firms etc.). Entry-level salaries start at £30-40k, which is atrocious for a very expensive city like London and you will probably have to flatshare with others to make ends meet. - Everyone else. What is important to note here is that there is a very implicit status-ranking in these groups, and software engineers particularly are not respected any where close to the level they are in the United States as they are not considered members of the first group. This, as you can imagine, has very severe effects on the level of compensation and the general working conditions that you can expect as an engineer as you are not deemed deserving of more compensation since you are after all "just an engineer". This is also why stock options and other equity compensation schemes are not as popular in London as they are in the Bay Area. Software engineers are considered support staff rather than integral contributors to the success of a technology business. This social segregation, as you can imagine, also has effects on the social cohesion of the city, and I think the recent increase of crime in London is a direct consequence of the alienation of the third category of people due to the flood of liquidity from the first category, which drives up salaries for the second group of people (and thereby cost of living in London), and prices everyone else out. Most of Europe suffers under this kind of segregation, and I presume it is partly a consequence of antiquated social structures that were more prevalent during the 20th century but haven't really modernised to align with the interconnected and meritocratic reality of today. I believe this is the primary reason why compensation for software professionals is so low in Europe compared to the meritocracy of America (but even this is changing with implicit filters such as Ivy League degrees etc.). Most global cities have elements of this as well, but I feel the divide and indeed social inequality is very pronounced in London and is becoming worse by the year, which is among the reasons as to why I left the city for greener pastures.

deleted 7y ago

[deleted]

threeseed 7y ago

I can't imagine why anyone would bother starting a new company in UK. Brexit is looming and it is an almost certainty that a no-deal will happen. (UK wants it and EU won't be able to get unanimous agreement from all member states' and their parliaments). And in a no-deal Brexit companies will have to ensure EU data sovereignty which means duplicating infrastructure in the EU anyway. Not to mention all of the complexity around tariffs and digital/internet taxes. Being in the UK you get all of the negatives of the EU without any of the benefits.

thefounder 7y ago
UK will get a deal from Trump and will compete with Silicon Valley. Not to mention it can expand within the old colonies(i.e India, Africa, HK) maybe even get a great deal from China. EU is obsolete just like NATO! PS: I don't really believe this stuff but this seems to be the plan.
- chipperyman573 7y ago
  I don't really think that reasoning makes much sense... >UK will get a deal from Trump and will compete with Silicon Valley Why would the US government offer a deal that brings up a major city to compete with one of its own? >Not to mention it can expand within the old colonies Most of those were given up in the last 10 or so years or so, and most of their "citizens" have no real allegiance to the crown. And anyway, the UK is already better off than most of those countries already, so they'd have to pull the new county past wherever the UK already is. >maybe even get a great deal from China Maybe I'll get a great deal from china if I renounce my US citizenship but there's no reason to believe that's the case (plus, china will want to benefit from the deal somehow...)
- marcinzm 7y ago
  The UK is negotiating from a weak position since it's about to lose a lot in a no-deal brexit. The UK politicians at the same time need to show some kind of post-brexit win. That's pretty much a guaranteed way to get a horrible deal with someone that can be just barely spun to make enough voters not notice how bad it is (ie: like brexit itself). edit: Although China is plausible, as in China spending 10 years draining the UK of any worth it can before discarding the husk that remains.

twic 7y ago

Has anyone heard of any of those "good / reliable consultants, experts, mentors"?

jamedjo 7y ago
One of the founders listed elsewhere on that page was a mentor on an accelerator I took part in. We went over our business in depth, he eventually became a supplier to us, then we became his largest customer. One day he abruptly stopped providing the service, and then relaunched his business trying to copy us instead. We out executed, but I'd advise caution with mentors. Some were great help, this one was malicious.
- Ozzie-D 7y ago
  Would you be comfortable sharing the name?