The Impact Of Brexit On Startups Globally, An Asian Rebound?
The impact of Brexit on startups and the London and European tech scene was discussed in a lively panel at the recent Silicon Beach Festival in Los Angeles. Several topics were debated: Will England have a more difficult time attracting talent, investors, business, and developers, or will it eventually be business as usual? Will other countries in Europe see an increase in tech activity, and how are they prepared to handle new investors and developers?
From the heated comments of the panelists, there was little doubt that London will need to do more to shore up its position with startups and venture capitalists pondering where to invest and set up shop.
James Cummings, London & Partners, VP Business Development, was in the hot seat as he was questioned about Britain’s exit from the European Union and where that might leave London as Europe’s leading startup capital. Mike Prasad, Managing Director of ventureLab, said the uncertainty of the outcome is leading venture investors and startups to hold off on making further investments right now until things calm down (or not).
To be sure, several of the panelists said that Berlin and other leading European hubs are angling to pick up startup business from the Brexit fall-out.
Doing her part, Michelle Loughran, IDA Ireland, VP of Business Development, emphasized her nation’s stability and favorable positions, which has made it a corporate home for many multinational companies and startups.
Rebecca Fannin, founder and editor of Silicon Dragon, observed that tech moves in regional or global circles now rather than national borders. The Asia region could benefit from the uncertainty in Europe for startups, she said, and will be a bigger pond that Britain separated from Continental Europe.
DEALS – CHINA
Gobi Partners and Kaitai Capital have jointly invested $14.3 million, Series A financing in Shanghai-based property financing platform Momfo, which provides short-term financing options for real estate company to remodel and upgrade under-used living and working spaces. Momfo relies on crowdfunding for this sort of investment into some 100 apartment complexes, hotels and commercial buildings and workspaces. Founder and CEO Ling Jun is an investor turned entrepreneur with several years of experience in real estate finance. The investment deal was led by Michael Zhu, a partner at Gobi Partners.
Source Code Capital has co-invested $22.5 million with Yihao Capital in a third financing of automotive after-sales service eBaoyang. Source Code, formed by prior Sequoia Capital China VP Charlie Cao in 2014, is an early backer of the Chinese startup, first investing $5 million.
Two Chinese private equity firms have led a series A funding worth a total of $31.5 million in Chinese medical startup Beijing Allcure Medical Technology. The firms were Zhengheci Capital and Lain Fund.
DEALS-INDIA
Sequoia Capital India has led a $24.7 million, Series B round in Mitra Biotech, a Bangalore-based startup focused on personalized cancer care. Sands Capital also participated in the financing for the company, which showcases real innovation from India.
Bessemer Venture Partners has led a near $15 million financing of Indian online home design portal LivSpace, in a third round of funding. Jungle Ventures and Helion joined in as co-investors in the Bangalore-based startup.
