NEW YORK (TheStreet) -- The tech sector in Europe is reeling from the U.K's referendum to leave the European Union and many are wondering if they should move their business elsewhere on the continent.
Despite the looming fear, Paul Holland, General Partner of Foundation Capital, believes England will remain the center of business in Europe, especially for the technology sector.
"[The U.K.] is too important of a marketplace ... at the end of the day, people will want to practice commerce," Holland said on CNBC's "Squawk Alley" this afternoon. "There will be workarounds, things that we can't even anticipate now, so I think the tendency is to dig really hard into the negative."
Companies that will feel the impact of Brexit are those with the highest exposure to Europe, notably software and hardware multinationals, while "the broader players, the internet and e-commerce players and so forth" will mitigate their risk due to large U.S. presences, according to Holland. Corporations that will bounce back the most quickly are those "almost entirely focused on the U.S. market," Holland says, with a "very stable space" and nice growth. Those are the companies that will "kind of look like winners."
Many are wondering if they should move their businesses to other European cities and "you're going to see people are going to take a second look at places like Amsterdam, Brussels, Ireland, other places that are still within the E.U.," Holland said. He formerly operated the European division of Pure Software, which chose to go to Amsterdam to be involved in the continent.
"There is a potential silver lining" from the U.K.'s opportunity to pioneer "a less regulated, a less obstructionist path towards business," Holland noted. "We could see some really interesting things, a bit of a renaissance happening there."
Additionally, Holland's venture capital firm Foundational Capital has exposure to between 3000 and 4000 companies per year. They end up funding about a dozen of those companies, helping many to go public.
"And those numbers won't change no matter what's going on with the Brexit," Holland added.