As the Olympics brings the world’s focus on to East London, Jenny Southan reports on the digital revolution taking place around Silicon Roundabout
Emerging from a speakeasy on Hoxton Square and rounding the corner, there is a clear view down the road of a remarkable sunset above the gleaming towers of the financial district. A huge, puffy cloud of pink and lilac set against a grey sky provides an eye-catching contrast to the greens and blues of the glass and steel, and the black nose of the Gherkin.
The City appears a chimera, a strange land far from the grimy warehouses, kebab shops and street art commonplace around Old Street and Shoreditch – an area so distinct that many of its bars ban suits, and talk of fast cars and big bonuses is unwelcome.
Over the past few years, this part of East London has become a hotbed for innovative start-up companies attracted by low-rent office space. It’s a trend that was first identified in 2008 by Matt Biddulph, co-founder of travel app Dopplr, who coined the term “Silicon Roundabout” to refer to the area around Old Street station where high-tech businesses were clustering. At that time there were only about 15 firms, but by 2011 there were more than 200 – a phenomenon accelerated by the coalition government’s decision in 2010 to feed this growth with generous tax breaks, entrepreneur visas and grants, and turn it into a hub branded Tech City.
Internet-based start-up Mixcloud, which describes itself as the “home of on-demand radio”, moved to a building on Tabernacle Street in July last year. Nikhil Shah, co-founder of the 2.5-year-old company, explains why it decided to set up here. “The difference between being outside the loop in far-flung West London and here in terms of meeting other entrepreneurs and prospective clients and sharing information is significant. Plus, it is a good place to entice good staff because it’s a cool area, easy to get to, and there are great places to eat, like Whitecross Market, which is packed with international food stalls.”
Today, there are more than 1,100 tech and digital creative companies focused on sectors from e-commerce, mobile apps and IT infrastructure to animation, gaming and social media. They include games giant Mind Candy, social media aggregator Tweetdeck, music event database Songkick, deal website Groupon, holiday rental service Airbnb, advertising agency Mother (next door to private members’ club Shoreditch House), and even immersive theatre company Punchdrunk, which occupies a converted train carriage above Great Eastern Street.
Local resident Emma Clark, assistant at news site businessoffashion.com, says: “The people you meet on a daily basis seem to be on the same level in regards to wanting to be a part of start-ups as opposed to established companies. East is definitely about welcoming the new and trying something different, even if it doesn’t always succeed.”
Positioned in a modern block on Silicon Roundabout is Huddle, creator of an application that allows teams to work collaboratively and share documents in the Cloud. Since setting up four years ago, its platform is now used by 75 per cent of UK government departments and more than 100,000 organisations and businesses – in fact, it has been tripling in size every year, and will soon have to relocate to a bigger office within Tech City.
Alastair Mitchell, co-founder and chief executive, explains why he thinks it is important to have its HQ in the area (it also has an office in San Francisco): “It’s all about knowing global investors can step off the plane and get their business done within a one-mile radius of here. The neighbourhood is characterised by lots of mixed-use warehouses and loft spaces that have been converted into cheap, flexible offices and there is a vibrant social scene. Those are the things that make a perfect breeding ground for new businesses. It’s no coincidence that you find loads of hipsters here and in San Francisco – people with tight jeans, asymmetric haircuts and single speed bikes.”
Multinationals such as Cisco, Intel, Vodafone and Google also have a presence here, and if you visit techcitymap.com you will get an immediate impression of just how many companies there are. Still, their diversity means Tech City is far from being a simulacrum of California’s Silicon Valley.
Andrew Humphries, entrepreneur specialist for the Tech City Investment Organisation (TCIO), part of UK Trade and Investment, says: “If you look at the different clusters around the world, the thing that sets Tech City apart is this way in which the companies use creativity and fashion and art to go on top of the underlying technology to create something very different. It’s more akin to what’s going on in New York.”
The TCIO has three key responsibilities – to assist in securing foreign direct investment, to engage with overseas venture capitalists and help them set up deals, and raise the profile of Tech City internationally. So how would Humphries describe the locale to people who are unfamiliar with it? “The kind of person that the area has attracted is slightly bohemian, more maverick and fashion conscious, who is interested in how technology can better our lives. When you combine those things with places to socialise, bars, music and art galleries then you end up with a really exciting, colourful kind of place. You see people mixing together, sharing ideas and finding their next business partner in the coffee bar.”
In terms of infrastructure, BT and Virgin Media have installed super-fast broadband and 4G across the area, allowing locals to avail of speeds 240 times faster than the national average. Wifi is also being rolled out across 120 Tube stations including Old Street, Liverpool Street and Stratford, as part of preparations for the Olympics.
Transport links are also being improved – Shoreditch High Street overground station opened in 2010, and a DLR service from London City airport to the new Stratford International was inaugurated last September. Stratford will also be offering seven-minute Olympic Javelin trains to St Pancras during the Games.
Another Tech City initiative has seen the government invite 300 international start-ups to the Startup Games, a pitching competition taking place during the Paralympics, and it is hoped that those shortlisted will relocate here.
Once the sporting events are over, the Olympic Park will also be incorporated into Tech City, which is seeing £9 billion of government investment. Among the projects to be unveiled will be a new university specialising in digital media and green technology, an Innovation Centre by Cisco Systems, an accelerator space under Imperial Innovations (Imperial College London’s technology transfer company), and 90,000 sqm of affordable office space in the broadcast and press centres.
In March, the Google Campus (campuslondon.com) opened in a seven-floor building on Bonhill Street, providing hundreds of young tech companies with free desk and meeting space, internet access and heaps of events, thanks also to partnerships with start-up accelerator Seedcamp and co-working space providers Tech Hub and Central Working. Humphries says: “It’s great as Google gets to see what new ideas might be coming down the track – maybe it will make its next acquisition from Tech City.” Kam Star, chief play officer for game developer Playgen, agrees: “Google is a monster but having one of its tentacles wiggling around shows there must be something here.”
The interiors of the Campus are decked out in typical East London style, with bare cement walls, snazzy furniture and a reception area with retro gadgets on display. In the basement, Central Working (centralworking.com) has set up a communal space for eating, drinking coffee, playing table football and tapping away on your laptop – it is accessible to anyone working in the industry every day for free.
It also offers a dual-option membership scheme called Basecamp for business people visiting London. Sign up for the Guest package (£25 per day) and you get, in addition to use of the communal area in Tech City, access to Central Working in Soho, hotel discounts, hire of its three meeting rooms, and free printing and scanning. The £200 per month Basecamp London membership also provides you with 24-hour storage, partner discounts with Apple and O2, a registered Tech City address and “Collective Intelligence” sessions, which enable you to discuss business problems with fellow members.
James Layfield, chief executive of Central Working, says: “We try to make serendipity happen. If you walk into a Starbucks you might bump into someone who is useful to you, but if you come to a Central Working space, we will make sure you bump into someone useful. It is possible for someone who comes in on a Monday looking for funding for his or her start-up to leave on Friday with £100,000. That is the magic we bring.”
There are dozens of networking groups in the area – such as Mixcloud’s Digital Roundabout Social Club, Developer Garage, Digital Sizzle, Innovation Warehouse, Hoxton Mixer and the Tech Meetup – that arrange regular get-togethers. Huddle’s Mitchell, who hosts Drink Tank quarterly, says: “It’s about providing a space for entrepreneurs to come together. They can ask for advice over a beer knowing that they won’t be sold or pitched to.”
There are also workshops, mentoring events and festivals run by the likes of not-for-profit organisation Digital Shoreditch (digitalshoreditch.com). This year, over two weeks in May, it had more than 6,000 attendees and 300 presenters speaking about everything from crowdfunding to robots in a pop-up venue called Hackney House. However, you will just as likely end up mingling with local entrepreneurs at any of the nearby drinking dens, so take off your tie and order something strong. Sometimes, there is nothing better than going native.
Speakeasies
NIGHTJAR
Located just off Old Street roundabout, this genteel, candlelit hideaway serves artistically presented cocktails from pre-prohibition, prohibition and post-war eras, as well as Nightjar signatures made with infusions, bitters, vermouths and liqueurs created in-house. Live music is performed in the subterranean venue Wed-Sat.
129 City Road; barnightjar.com
WORSHIP STREET WHISTLING SHOP
This “Victorian bespoke” bar specialises in cocktails made from ingredients that have been “alternatively aged” in its on-site laboratory. The Emporium can be booked for 2.5-hour historical vodka experiences, while the Dram Shop seats eight around a bath, with access to a vintage gin cabinet.
63 Worship Street; whistlingshop.com
CALLOOH CALLAY
There are three drinking dens here, although you wouldn’t know it if you stopped for a sup in the main bar. Make a booking and you will be taken through a wooden wardrobe into the darkly mirrored lounge, or the intimate Jubjub, where free membership comes with your own key.
65 Rivington St; calloohcallaybar.com
LOUNGE BOHEMIA
A reservation will guarantee you a table in this underground Czech bar harking back to the Communist era. Expect concrete floors and archways, retro furniture and imaginative cocktails. Book 24 hours in advance for the five-course “manipulative mixology” tasting menu (£30). 1e Great Eastern Street; loungebohemia.com
HAPPINESS FORGETS
Down a flight of steps in front of Macondo coffee bar, this cosy little watering hole has brickwork walls, a well-stocked bar and moreish concoctions that are brought to you by affable waiting staff, along with glasses of cucumber water. 8-9 Hoxton Square; happinessforgets.com
MAYOR OF SCAREDY CAT TOWN
Stop by the Breakfast Club and ask to see the Mayor. If there is space or you have made a booking, you will be escorted through a Smeg fridge and down to this buzzing speakeasy. Swig a bottle of 6 per cent Alhambra beer but whatever you do, don’t talk about your salary. 12-16 Artillery Lane; themayorofscaredycattown.com
Eateries
PIZZA EAST
This expansive venue in the renovated Tea Building features rustic interiors with wooden floorboards, rough walls and exposed pipework, but the vibe is distinctly trendy. The food is delicious – try a selection of antipasti (£3.50-£7) or a sumptuous pizza (£8-£13). 56 Shoreditch High Street; pizzaeast.com
THE BOUNDARY
Located in the 12-room boutique hotel of the same name, this chic French restaurant specialises in seafood and meat, using seasonal British ingredients such as hare, asparagus, gull eggs and grouse. Although pricey (£18-£55 for a plats principaux, £40-£100 for fruits de mer), there is a three-course prix fixe menu for £24.50. 2-4 Boundary Street; theboundary.co.uk
BOHO MEXICA
Pop into this colourful, laid-back joint for Latino tunes and freshly prepared Mexican cuisine. Start with a dish of guacamole and homemade tortilla chips (£4.95) or some tacos (£6.25-£6.95) while you decide between quesadillas (£9.95) or enchiladas (£11.95). 151-153 Commercial Street; bohomexica.co.uk
MARK HIX TRAMSHED
Open since May, this is one for lovers of chicken and steak – and Damien Hirst, for that matter, as there is a huge glass vitrine in the centre of the restaurant with a pickled calf and a cockerel inside. The simple menu lists roast chicken (£25) to share, and sirloin steaks up to 1kg in weight (£20-£80). 32 Rivington Street; chickenandsteak.co.uk
BISTROTHEQUE
Hidden from view in a nondescript residential area, this eatery is a little further afield near Victoria Park, but once you have found it you will discover another world – one with polished cutlery, white tablecloths and a baby grand piano on which pop hits are recited during brunch. Dinner can encompass sea trout (£18), veal chop (£18.75) or Parmesan polenta (£16). 23-27 Wadeson Street; bistrotheque.com
