The results of UK’s referendum at the end of June have made companies and people rattle against. If we take into account that about half of the entrepreneurs who recently founded a startup come from outside UK, we can have a better idea why this has been and it will be a topic discussed assiduously.

While people and experts have flocked to make different assumptions about the consequences of Britain exiting EU, companies and investors are trying to take into account all the contingencies that Britain’s exit or ‘Brexit’ from EU would bring.

Will companies, especially start-ups suffer in the aftermath of the UK exit from EU? The decisions at EU level are plodding and the wait is burdening for both new comers and big companies.

However, Brexit is definitely more pressing for early-stage companies which are exposed to a higher risk since they don’t have the luxury of waiting and seeing where the wind blows. At the same time, a young company is interested more in what happens on a short term since they focus mainly on how the business will develop in the next few months. There is enough uncertainty that a startup has to face. Adding one more doesn’t do any good.

Clearly, Brexit will cause a tumultuous change of plans for many startups. What could be some of the consequences?

1.Companies might split operations with one division in continental Europe and one in Britain.

The uncertainty caused by Brexit has created a greater sense of urgency for startups based in UK to either focus on other markets and move the operations away from the UK or to establish a holding company in the UK which could own and control the ones based elsewhere in Europe.

2. London will cease to be the place with the highest number of VCs

London has been a key player in terms of European venture capital from where almost half of the European startups in a later stage receive funding. Brexit will cause VCs to be more reluctant when deciding to fund start-ups and they will cut off new funding. This situation will force some entrepreneurs to leave and look for sources of capital in other realms.

3. Limits on immigration and cumbersome paperwork for employment

This is of a major concern for startups who have built an international team and plan on doing it further in the future. Free movement of labor has been an important factor for successful European companies. The prospect of having to deal with cumbersome paperwork could have a negative impact on the pool of applicants for a particular job, hindering indirectly the employers to recruit and retain high-skilled workers.

4. Other big cities may become the main startup hub in Europe, such as Stockholm and Berlin

It is expected that positive actions will be implemented by some governments to step up their business environment and attract those companies that want to move out of UK and set their base elsewhere. Therefore, soon enough we might witness a shift in the tech powerhouse of Europe.

Among many other entrepreneurs, Eurosender is also considering moving its headquarters to Berlin and relocate the entire team there. Britain has been one of our main focus, but Brexit dissuades us from making further plans on this market. You can learn more about our company’s opinion on the matter in the articles published in Washington Post and The Independent.

Things are far from being crystal clear and the vote in referendum was a caveat for the startup scene. It is expected that startups will be much more cautious from now on when deciding their next steps. Until the exit is concluded, there are no clear answers and startups are left in bewilderment.

Undoubtedly there will be many positive examples of successful startups that have learnt how to withstand the shaky and volatile situation resulted from Brexit. Brexit is still a big question mark in terms of consequences, but uncertainty gives sometimes a strong ground for development if adaptability is learnt fast enough. Startups will have to learn how to do business outside UK.