Silicon Roundabout: Are Tech Giants Stamping Out Start-Ups?
Recent headlines have been delighting in the news that Google, Facebook and Amazon are being lured to East LondonΓÇÖs Tech City. But what does that mean for the little guys on Silicon Roundabout?
With big names and famous perks, these tech giants are moving in to poach the local talent ΓÇô presumably away from the smaller start-ups that are trying to make their names known in the increasingly renowned Shoreditch area.
ΓÇ£When I hear conversations about bringing Facebook and Google innovation quarters to the area, I worry it would make it something very different,ΓÇ¥ business owner Chris Downs told IT publisher, ΓÇÿComputingΓÇÖ.
ΓÇ£It would be the land of big corporates, not the start-up corner. TheyΓÇÖll force the prices up and weΓÇÖll have to go somewhere else.ΓÇ¥
If that is to be the case, itΓÇÖs not happening yet. According to the statistics gathered in the serviced office market in Central London in Q2 12, prices may be rising for the area but the demand is for small offices for small businesses ΓÇô not big offices for big corporates.
The Serviced Office Review from officebroker.com finds that the offices being rented in the heart of London ΓÇô including in the EC1 and EC2 postcodes around the Silicon Roundabout ΓÇô are smaller than they were this time last year.
Some start-ups, at least, are thriving in the shadow of the big international businesses.
ΓÇ£If we look at the longer-term view then thereΓÇÖs potential for these larger organisations to increase excitement in the sector and encourage clever people to get educated and experienced in tech subjects,ΓÇ¥ local social start-up leader Stuart Battersby told ΓÇÿComputingΓÇÖ.
ΓÇ£What is important is that the bigger firms play nicely with small companies either via partnerships, financing or resources. If they do this ΓÇô and we have seen them doing this so far, especially through developer outreach programmes ΓÇô then they can help a whole range of companies grow with them.ΓÇ¥
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