Last year, many believed lockdown restrictions would result in the demise of London’s famous Silicon Roundabout. Located in Shoreditch, the area around Old Street roundabout was given this name over a decade ago. At the time, the location was a prime spot for start-ups, particularly within the tech sector, with its accessibility, local amenities and low rent office spaces just some of the factors that made the area appealing to wide-eyed entrepreneurs.
Silicon Roundabout, or Tech City as it is often referred to, quickly became the place to be for everything from fintech businesses to digital creatives. The boom happened around the time of the financial crisis in the early 2000s. While many businesses were tied up in long leases, start-ups took advantage of subletting opportunities and low rent due to devalued property. Not long after, the area had become a hub for the tech sector, with government-backed operations now helping with its regeneration.
10 years and a global pandemic later, the bustling East London area is beginning to look a lot different.
The Rise and Fall of the Silicon Roundabout
Since being coined the Silicon Roundabout in 2011, the London hotspot has enjoyed many years of success. It has housed some of the city’s most triumphant start-ups, including the likes of FarFetch and TransferWise. Having become a clustered community, the proximity of similarly minded entrepreneurs encouraged collaboration and connection among the sector’s up and coming talent.
The area itself has been regenerated with office spaces, event venues, cafes, bars, restaurants and more. At its peak, it was the focal point for developments in the capital, welcoming countless new skyscrapers and workspaces, all designed to promote the location’s business boom. The Google Campus, which provided a communal hub for start-ups, was just one example of the optimism for the area.
However, in more recent times, Silicon Roundabout has been faced with a number of challenges. While the pandemic has certainly placed an obstacle in the way of the area becoming a booming global business district, its turn actually began some years ago.
Naturally, as more and more start-ups flocked to the area, rent prices inevitably increased. What was once a selling point for an office located in Shoreditch became a glaring deterring factor. After all, many of these start-ups were barely generating revenue, let alone profit to invest in a property in a prime tech hotspot.
Political pressures such as changes in government and the EU referendum also resulted in difficulty for Shoreditch start-ups, many of which relied heavily upon aid and foreign talent for continued growth.
Nonetheless, the East London location is home to some of the capital’s most forward-thinking office spaces, specifically designed for innovative and future-focused tech businesses. It has also remained desirable for this reason, despite events happening in the wider macro environment.
That was, until the COVID-19 pandemic hit. As the threat of the virus grew in early 2020, and lockdown restrictions were introduced, businesses across the capital were forced to close their offices and send employees to work from home. Fortunately, the nature of the tech industry meant that this could be implemented fairly smoothly, with little interruption to business as usual.
However, this easy transition can be attributed to a lot more than the nature of these businesses, as the offices and environments in which they have been operating for over a decade now, can also be credited.
The collaborative culture at Silicon Roundabout has welcomed coworking spaces, hot desks, shared and flexible offices, and the overall idea that anywhere with Wi-Fi and a tabletop can become a workstation – be it cafes, bars, restaurants or anywhere else.
While the initiative has had its downfalls, what it has done successfully is introduce a new way of working; one that fits perfectly with the post-COVID world.
The Future of Silicon Roundabout
As restrictions ease, businesses are finding themselves having to adjust once again. Like many other organizations, start-ups have benefited from lower overheads after giving up their long term office space leases. Going forward, the work from home movement will continue, with the exception of being allowed to work from the occasional coffee shop or communal space.
In response to this shift, there have been a few big changes to the Silicon Roundabout community, with the closure of the Google Campus and Tech Hub, the area’s first tech-focused office space, just one of several examples.
However, the shift is not predicted to be a permanent one with issues such as isolation, lower team morale and a blurred work/life balance becoming increasingly apparent, all of which are things Silicon Roundabout was originally pioneered to prevent.
Instead, businesses should seek a solution that caters to both the freedom from a long lease and providing employees with a social side to work. The answer lies in those office spaces in Shoreditch, which make up the Silicon Roundabout.
The flexibility of coworking areas, short lease terms and hot desks will become ever more popular in the post-COVID world, providing an opportunity for the East London location to thrive once more.
In the last three months alone, there has been a significant increase in searches on Google for “office in Shoreditch”, “coworking office” and “flexible office space”, indicating a strong interest in the area’s unique offering.
On top of this, Shoreditch has been transformed. It has become a desirable location for anyone visiting the capital, whether it be for work or leisure. With top-rated hotels, Michelin star restaurants and a diverse range of bars and cafes, the area has a lot to offer its passing guests and permanent residents.
Like everything in the tech industry, trends are ever changing and things do not stay the same for long. While it may seem that the Silicon Roundabout has outlived its reign as the UK’s hotspot for tech start-ups, the adaptability of its many business amenities should not be overlooked. Something may be stirring in East London once again.
