Not yet, says Alexander Riesenkampff of iBondis, a financial startup based in London. While the city on the Thames might lose some of its appeal due to Brexit, it doesn't necessarily have to. And even if it did, Berlin might not be the best alternative for everyone.
What does iBondis do?
On one side, iBondis provides loans to small businesses across Europe. On the other side, we offer investors the opportunity to invest in these loans and earn attractive returns. We cover this business with our own licenses – completely without a partner bank.
How has Brexit affected your startup, if at all?
In terms of Brexit, we are not immediately affected. However, it is possible that we may not be able to continue using our Europe-wide license in the UK after the conclusion of the exit negotiations. However, this will only happen at least two years after the UK officially submits its withdrawal request. If the exit negotiations do indeed result in leaving the EEA, we will move our license to another EU country. We expect that there will be special regulations that will simplify this for UK-based financial institutions operating in Europe. If not, we will still have enough time to reapply for our license in another EU country or to relocate under the existing rules for relocation.
What specific changes do you anticipate at your London location?
None in the short term. In the medium term, it is possible that we may close in the UK. It really depends on how Brexit unfolds (see above).
What is the mood in London - where are startups orienting themselves?
Superficially, there isn't much noticeable effect from Brexit. London is a city that still offers tremendous potential, even for startups, despite Brexit. Therefore, London will remain attractive. However, probably not anymore for startups like us that serve the European market from London.
What influence does Brexit have on Berlin as a startup city?
None in the short term. In the medium term, this could be an opportunity. However, it's not just about Berlin, but about Germany as a whole. Here, policymakers and regulators need to consider whether they want to promote innovative FinTechs through innovative regulation or take a more wait-and-see approach. If we had to move our license from London tomorrow, Germany probably wouldn't be our first choice.
What does Berlin offer startups in general and where does it fall short?
Berlin now offers pretty good conditions. A good talent pool and relatively low administrative costs are probably the two most important strengths. But for us, for example, Berlin completely lacks the financial industry, which London naturally excels in. But even Frankfurt or Munich have much more to offer in that regard.
What does London offer?
Everything! But the costs are quite high.
What role will London play for startups in the future?
For startups in general, London will remain an important center. For startups like us, serving the EU market from London, London will probably lose attractiveness in the medium to long term.
