An increasing number of wealth managers in London’s financial district are waking up to the potential investment opportunities presented by the growing tech cluster on their doorstop.
Tech City has begun to mature over the last eighteen months, with London-based start-ups like TweetDeck and Monoidics selling to internet giants Twitter and Facebook for tens of millions. Their purchase has been a signifier to the money markets that East London could well be a breeding ground for some of the globe’s market-leading tech companies in the coming years.
A number of other companies based around ‘Silicon Roundabout’ have expressed tentative interest in following in Twitter’s footsteps and filing for an IPO. Mind Candy, makers of the hugely success Moshi Monsters, have been hotly tipped to be the next big name in EC1 to test the water.
Private banks will be keen to establish early relationships with the entrepreneurial communities of Tech City, with an increasing number showing exceptional growth, expansion and profitability. This new wave of ‘young money’ is in stark contrast to the traditional portfolios managed by the district’s most prestigious financial institutions: stereotypical clients are white males over the age of 50 with in excess of £100,000 invested.
Tech City presents an instant-access, low risk market for many of the private banks
situated a short walk away in Liverpool Street and the surrounding areas. It is likely that exceptions will be made from the traditional requirements to allow entrepreneurs to initially invest far smaller amounts. Client retention will be vital with these growing companies, and many of Tech City’s current start-ups may well qualify for wealth management services in the future.
Shoreditch Office Space has seen an increasing number of non-traditional occupants looking for office space in East London, including lawyers, accountancy and recruitment firms. Many of these are being attracted to Shoreditch not only for its competitive property prices and transport links, but also the number of clients now based in EC1. Tech now contributes for more than £100bn to Britain’s economy each year, and Silicon Roundabout is at the epicentre of this.
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