Home UK Brexit could cause ‘serious damage’ for foreign investment into the UK, new...

Brexit could cause ‘serious damage’ for foreign investment into the UK, new study says


Dharmash Mistry, chairman and co-founder of venture capital firm Lakestar, said if the U.K. did not reinforce a positive environment it would lose overseas investors to other European markets, adding that Brexit was “undoubtedly” spooking investors.

“If there is uncertainty many investors wait to see how the future will unfold before deploying too much capital,” he told CNBC via email. “Talent will wait to see if they can continue living in the U.K. before moving. This is true today and (will become) more of a concern if we don’t stem the tide.”

He said businesses needed mobility of talent across borders, more government capital, and a regulatory friendly framework to remain attractive to investors overseas.

However, Zoe Chambers, the head of the future of industry team at Octopus Ventures, said deals were still being done despite political uncertainty, noting that innovative industries such as artificial intelligence were holding firm.

“There’s a lot of capital in the market,” she told CNBC over the phone. “An increasing number of U.S. investors are looking across to the U.K. and Europe — historically they have only invested in domestic companies, but they’re more and more willing to invest across the pond.”

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