Tech companies to be given £1m funding pot

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Tech companies to be given £1m funding pot

Caroline Baldwin

Ten start-up companies from media and B2B sectors will be chosen to receive a share of £1m, as well as management and mentoring from UK brands.

Start-up tech companies in England have the opportunity to apply for a new accelerator programme, Collider12, which will support 10 businesses developing technologies to help existing big brands engage with customers.

The programme follows a number of initiatives underway to boost tech start-ups in the UK.

The scheme is operated by a series of partners including national investment agency, Creative England; investor, Ingenious Media; and angel investment house, Pembridge.

Creative England has secured £500k in loan capital from the Regional Growth Fund, which it intends to invest in 10 start-ups. The no-interest loan will be repaid at a later point with Creative England taking a 1% equity stake as part of their involvement.

A further 10 investors, including Ingenious Media and Pembridge, will make up £500K of the funding pot, and also receive a 1% share.

The chosen 10 businesses will receive this financial support in order to produce their technology solutions for several big British companies. The British companies will also mentor the start-ups in aspects of business such as marketing, accountancy and law.

The technology solutions will not be produced for big technology companies such as Google and Facebook, but British companies including a British broadcaster, a high street bank, as well as brands from the FMCG, electrical goods, high street gaming, consultancy, accountancy and aerospace defence areas.

“For most of these brands, it will be the first incubator they will have been involved with,” said David Prais, head of Pembridge, which will provide the start-ups with training, support and management.

“Each of these brands has difficulties linking the physical world with the growing virtual world,” said Prais. Companies who have managed to bridge this divide, such as Coca-Cola’s music downloads, have seen a significant increase in new audiences, he said.

Applicants will have to produce a two-minute video pitch, as well as submitting a financial model and proving they have a basic understanding of business and the ability to show scalability. 

“We’re not expecting brilliant, running companies [applicants] turning over millions already,” said Prais.

“One of the things we’re interested in seeing is that, although they have a clear vision, they’re also interested in learning and willing to take some advice,” he said.

Business will need to apply by 2 November on the Collider12 website. Successful applicants will be told by 14 November, with the programme beginning in January 2013.


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