London is trying to exploit the deep pockets of Silicon Valley

London Mayor Sadiq Khan hopes to persuade US tech companies to invest more in London.

Leon Neal | Getty Images

Sadiq Khan, the Mayor of London, traveled to California as part of a trade mission to try and persuade Silicon Valley tech leaders to invest more money in the UK capital.

On Tuesday, Khan met with senior technical leaders, including Google Ruth Porat, Chief Financial Officer, Bay Area venture capitalists and entrepreneurs.

The Mayor of London ultimately hopes to strengthen what is already a strong relationship between London and Silicon Valley.

He specifically wants more US tech companies to open more offices in London. He also wants more US tech investors to back more London start-ups with more of their billions.

US tech giants including Google, A half, Amazon, Twitter Other Apple They already have large offices in the capital, while Silicon Valley venture capital heavyweights, including Sequoia and Lightspeed Ventures, also recently set up outposts in the city to help them find investment opportunities for startups.

Prior to his meetings, Khan said in a statement that he intended to “bang the drum for even greater investment in London by American technology companies.”

In 2016, there were fears that Brexit would lead to a mass exodus from US technology, but it didn’t happen.

Today, US tech giants employ tens of thousands of people across London, many of them in highly skilled and highly paid roles that contribute to the overall economy of the city.

in January, Google announced which is paying $ 1 billion for the colorful Central St Giles building, where it already occupies several floors, in London’s West End.

The Internet giant is also in the process of building a new large office with enough space for more than 4,000 employees at a site behind King’s Cross train station, while Apple will be one of the main tenants of the Battersea Power Station redevelopment.

The new Google headquarters in London.

Google

“Google has been committed to London’s growth and success through investments in our local offices, employees and research and development since we opened our London offices in 2003,” Porat said in a statement.

“Google shares the mayor’s belief in the power of technology to drive sustainable economic growth and we look forward to continuing to deepen our bond with the capital in the years to come.”

Research released Wednesday shows London is the number one destination for US tech companies looking to expand internationally, ahead of other European capitals like Paris, Berlin and Stockholm.

While investments by US tech companies can create jobs and stimulate local economies, they can also drive up house prices. Property prices in King’s Cross and Shoreditch have soared over the past decade as companies like Google and Amazon moved, for example.

The average price of a house in June 2010 in N1 (the postcode which includes parts of King’s Cross and Shoreditch) was £ 561,671, according to the Rightmove property website. By June 2020, that figure had risen to £ 939,561, with a number of factors behind the surge, including stimulus from both the government and central bank.