Tech City: Yammer brings Silicon Valley ethos to London's East End

In part two of our Tech City special report, V3 talks to Mike Grafham, head of Yammer EMEA professional services, to find out how the business social networking site is finding its new European headquarters in the heart of east London's Tech City.

Yammer set up a UK base in July, and London mayor Boris Johnson welcomed the move because it supported the government's drive to build up investment in the area.

Grafham said that Yammer has already seen business benefits from networking with other start-ups, and that companies like Yammer coming from Silicon Valley to Tech City will aid the area's development and start-up scene.

"Silicon Valley has a very developed infrastructure for start-ups, a long history of innovation, investment and people being encouraged to develop ideas," said Grafham.

"In Tech City, some of this infrastructure is coming into place and you are already seeing success stories from people that have started up here. But the businesses coming from the US can show how this model can be developed. The start-ups in London can learn from them."

Grafham explained that Yammer chose Tech City for its European headquarters because of the government's plans for the area and the "scene".

"The government is encouraging US businesses to come over here and support the scene they are trying to develop," he said.

"We also saw what was happening on the ground, and that it could be an interesting place for us to meet similarly motivated and driven businesses. Really it is the scene we wanted to be part of."

Yammer moved first into TechHub, a start-up workspace and networking centre close to the Old Street roundabout, before moving recently to rented office space nearby.

Grafham highlighted the benefits of Tech City in allowing businesses to quickly bounce ideas off each other.

"When we were in TechHub especially, we were able to understand what is going on in the start-up scene from just having a cup of tea in the kitchen, from being involved in football games with like-minded start-ups," he said.

"We discuss business issues, like the things affecting start-ups in London and how to find good talent, as well as more simple things like where to get a decent coffee.

"The thing that is attractive about Tech City is the scene it generates, the people you can socialise with and exchange business ideas with."

Yammer, which said last year that its revenue is doubling every quarter, recently announced plans to double its presence in the area by the end of the year.