Brexit would hurt start-ups, say investors

Around half of investors (51 per cent) and entrepreneurs (48 per cent) would vote to stay in the EU and 47 per cent of investors and 43 per cent of entrepreneurs would vote to leave, showing that opinion is still evenly split ahead of the EU referendum on June 23.

Seedrs said the Brexit jury is still out for entrepreneurs and early stage investors.

Nearly one in 10 entrepreneurs (nine per cent) said that they had no preference either way, compared with just two per cent of investors.

In a separate poll, Seedrs asked respondents what impact Britain leaving the EU would have on the UK start-up environment. Almost two thirds (63 per cent) said it would have a negative effect, while 16 per cent said it would be positive. More than one in five (21 per cent) said they were unsure what impact it would have.

Jeff Lynn, CEO of Seedrs, said: “The very even split between the in and out vote shows what a complicated issue this is.

“It’s clear that this has become a debate lacking real information and that we are instead hearing sound bites from both sides. There is a need to present people with real information to help them make an informed decision in June.”

Along with the CEOs of a substantial number of other UK tech businesses, Mr Lynn has put his name behind the Britain Stronger in Europe campaign.

“As a business Seedrs is in favour of Britain remaining in the European Union.

“We are a pan-European platform with London at our core, and we believe that we and our users stand to benefit from the open market that comes with Britain’s continued EU membership. In contrast, leaving the EU creates a number of very real risks for the British business community.”

Seedrs has had over £100m invested on its platform since launching in July 2012.

The poll comes a day after the CBI announced new research which said that leaving the EU would cause a “serious shock” to the UK economy, with a potential loss of nearly a million jobs.

Research commissioned by the CBI also found Brexit could cost the country’s economic output around £100bn, while “negative echoes” could last for years.

The findings came from an analysis by professional services firm PwC on the potential impact of the UK leaving the EU on trade and investment, examining two different exit scenarios, one at the optimistic end, and the other recognising the likelihood of trade deals being concluded.

The report said that significantly more pessimistic cases could be constructed. Under both cases, UK living standards, GDP and employment would be “significantly reduced” compared with staying in the EU. The analysis found the cost to the British economy of leaving is as much as £100bn, the equivalent of around five per cent of GDP, by 2020.

The report came under fire from campaigns fighting for UK withdrawal from the EU.

Matthew Elliott, chief executive of Vote Leave, said: “Even in the CBI’s skewed choice of scenarios for exit, they are forced to admit that employment and the economy will continue to grow after we vote Leave.”