How Brexit affects the global technology industry

Here are some major issues facing the tech industry in Britain and abroad, in light of the decision:

• Data flow and data privacy: The US and the European Union are in the process of making the final adjustments to their latest data privacy agreement, which governs the flow of data between US and Europe. With a major player in the E.U. now backing out of the coalition, there are obviously some questions about what happens to data flowing in and out of Britain from the US and elsewhere.
• Funding: One of the key reasons that many British technology firms said they were against a British exit from the EU was that it would be more difficult for them to secure funding for start-ups. London’s technology industry has been on the rise for the past several years. Britain benefits in large part from funds such as the European Investment Fund, which backs an estimated 41 percent of venture capital investments in Europe. Its majority investor is the European Investment Bank. But if Britain is no longer a part of Europe, that dries up a source of funding just as questions about how a UK shorn of its EU ties will regulate health tech, financial tech and other technology industries.
• Immigration: British tech firms — and technology firms from around the globe with offices there — have also raised concerns that the Brexit will fundamentally harm the tech industry’s ability to fill positions for highly skilled workers. Without the EU’s allowances to let workers move freely between countries, British companies are now worried about a shortage of qualified workers.