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London tech firms 'are struggling to recruit'

London tech firms are struggling to recruit new employees because of the Silicon Valley giants.

Tech firms such as Google, Facebook, Amazon, Apple, Microsoft and Twitter all now have a big presence in the UK capital, and their influence is impacting the ambitions of London-based firms.

Oscar White, the CEO and founder of the travel start-up Beyonk, told CNBC: "Software developers are in higher demand than ever before, which is likely to worsen as more tech company campuses spring up around the city.

"For start-ups on tight budgets, who heavily rely on technology resource as the key enabler for growth, this presents a real challenge."

A similar sentiment has been echoed by Tom Richardson, CEO of the money management app Lumio.

He observed that it's becoming increasingly difficult to hire people for an up-and-coming company in London.

He said: "We are a start-up and with only a seed round and we cannot attract devs or great product managers. Starting salaries are mad."

Alice Bentinck, co-founder of start-up investment firm Entrepreneur First, observed that the US giants have helped to increase competition in London.

She added: "Long term I don’t think it’s a bad thing. It’s a sign London’s tech ecosystem is thriving."

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