KEY POINTS

  • Trump signed an order that will suspend foreign work visas including the L-1 visa  and the H-1B visa
  • The British tech sector is keen to develop its own new Apple  or Facebook
  • European tech startups received $34 billion in venture capital funding in 2019

In the wake of a decision by U.S. President Donald Trump to temporarily restrict immigration of certain highly skilled tech workers, some tech firms in the U.K. and Europe are encouraging these technicians to consider relocating to their countries.

On Monday, Trump signed an executive order that will suspend foreign work visas including the L-1 visa (which allows companies to transfer staff from overseas offices); and the H-1B visa (which permits firms to hire highly-skilled people in certain fields).

“If you’ve been affected by the ridiculous decision to suspend H1-B [visas] in the U.S., take a look at the U.K. Global Talent Visa,” tweeted James Wise, a partner at Balderton Capital, a London-based early-stage venture capital investor.

Wise added: “The U.K.’s a hub for global tech, has more developers [and] venture capital than most of the East Coast [of the U.S. and is] a great place to start a company.”

The visa that Wise referred to was set up by the British government’s Home Office and “enables the brightest and best tech talent from around the world to come and work in the U.K.’s digital technology sector, contributing their cutting-edge expertise, creativity and innovation to maintaining the U.K.’s position at the forefront of the global digital economy.”

Similarly, Richard Howard, startup business development manager at Amazon Web Services in London, said the U.K. “should be absolutely taking the lead here” adding “it should be an automatic welcome for anyone who qualified for H1-B or [L-1 visas]”

Howard added: “While we're at it, if you attended any of the top 100 [universities] in the world, we should welcome you too.”

Some British firms said they would like to hire people blocked by Trump.

Sam Gill, the co-founder and chief operating officer of Sylvera Carbon, a carbon offset monitoring platform, said: “Sylvera Carbon is hiring. If anyone has been affected by the decision to suspend the H1-B visa [program] in the U.S. -- please reach out. We always have an open door for talented people -- no matter where they come from.”

The British tech sector is keen to develop its own new Apple (AAPL) or Facebook (FB) – companies that are worth hundreds of billions of dollars and are globally dominant.

London-based venture capital firm Atomico estimated that Europe’s tech sector now boasts more than 100 companies valued at over $1 billion.

European tech startups received $34 billion in venture capital funding in 2019, a 40% increase over the prior year.

Some European tech firms may also seek to attract tech workers who cannot go to the U.S.

Jean-Charles Samuelian-Werve, the cofounder and CEO of insurance startup Alan of Paris, called Trump’s decision “really, really sad for the U.S.” and that “Europe needs to take the lead.”

Samuelian-Werve said his company is seeking to hire at least 40 engineers, 10 designers, and other highly skilled professionals.

“We work from anywhere in Europe and France has an amazing visa scheme,” he added.

Charles Gorintin, a cofounder of Alan, said he was “heartbroken” by Trump’s rule “Because this decision is breaking the dreams of many, who saw the U.S. as a land of opportunity. I am convinced everyone on these types of visas are making the U.S. better.”

Gorintin himself benefitted from the H-1B visa program. “I spent [three] years in the U.S. on a F-1 visa,” he tweeted. “Then I spent [two] years on a H-1B visa. If it wasn’t for these visas, I would never have moved to the U.S., contributed to the economy, paid taxes, paid for my education there… And I may have never started Alan.”

Gonzalo Sanchez, head of growth at start-up Jobbatical, a relocation service, said Trump’s executive order was “one of the most important things to happen to European tech in a while.”

Miguel Arias, a Madrid-based entrepreneur and global entrepreneurship director at the Spanish telecom firm Telefonica, simply said: “Entrepreneurs, innovators: Come to Spain!”

Sanchez noted that, along with London, tech hubs exist in France and even Estonia.

But some observers think it would be preferable for tech workers to move to the European Union rather than Britain.

Pro-EU advocate Richard Scott tweeted: “Relocating to an EU member state would be the smarter move. Citizenship grants you Freedom of Movement in 27 countries, allowing you and your children to study, work, start a business and retire wherever you like.”