Is East London the new digital hub of Europe?

Posted by: Victor Pardis on 1st April 2014

Is East London the new digital hub of Europe?

Tech City (also known as Silicon Roundabout) is a technology cluster located between Central and East London. It is the third largest start-up cluster in the world after San Francisco and New York City.

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Welcome to Tech City

Whilst America may have Silicon Valley, home to some of the world’s largest technology corporations and small start-ups, an area of East London, dubbed Tech City, is being referred to as its European rival. Over the last few years, East London has become home to hundreds of small and medium sized technology businesses, as well as big players in the industry including Facebook, Twitter and Google.

Back in 2010 there were approximately two hundred digital companies operating in the area. Today there are close to one thousand five hundred.

What’s so great about East London?

It’s being said that there is nowhere better for start-ups to set up in Europe than in East London. Between 2009 and 2012 the number of technology companies located in London increased by a whopping seventy six per cent, whilst the technology sector as a whole in the city grew by almost seventeen per cent. Job opportunities in the area are also on the increase and there are now around five hundred and eighty two thousand people employed in London’s tech sector. In a world where many business students are looking to enter start-up companies upon graduating, these figures are extremely encouraging.

Searching for talent

One of the main reasons start-up companies set up in London is to find talented individuals to join their teams. With many universities located in the city, firms know it is the best place to find bright, young graduates looking to make their mark on the tech sector.

Office rental prices

Whilst East London may have excellent hiring potential, it’s not the only reason why start-up companies are setting up there. Finance is a key consideration for start-ups and with rent for commercial properties in central London on the increase; tech startups are looking for alternative options elsewhere in the city.

Shared offices in London

An option that many tech start-ups consider is shared office space. This not only allows them to make savings on rent, but also facilitates collaboration and networking between companies.

Many tech start-ups are choosing to operate from shared and serviced offices as a way to save money on business premises.

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Serviced offices in London

Serviced offices have also become very popular with small tech businesses. The monthly cost of a serviced office usually includes everything from office space to maintenance, reception services and furnishings. For many tech startups, a serviced office is the ideal business premise as it allows them to reap all the benefits of having an office, but for a small fraction of the price it would cost them to set up in central London. Serviced office leases are also extremely flexible, which suits start-ups as it means they are not tied into lengthy contracts.

Conclusion

With more and more tech start-ups flocking to East London, the number of job opportunities is only set to rise for those looking to find their place in the industry. Whilst West End rental prices may be out of budget for most start-ups, shared offices and serviced offices provide them with feasible alternatives.

Image credits: EEPaul & channelship