A NEW investment and business accelerator programme has been launched for early stage digital businesses on Teesside.
Building on the success of its predecessor, The Difference Engine, ignite100 plans to accelerate 10 emerging digital businesses, with up to £100k accessible for each successful start up joining the programme.
The money will be provided by the Finance for Business North East Technology Fund managed by IP Group and from the Finance for Business North East Proof of Concept Fund managed by Northstar Ventures.
Jon Bradford, co-founder of ignite100, said: “This is a vital development for early stage digital businesses for whom funding options are now increasingly limited.
“With a mix of investment capital, intensive business development support and external advice from key partners such as Google, PayPal and Amazon, we believe we can build a portfolio of sustainable businesses that will play their part in supporting the local economy.
“The offer of £100k from two leading technology-focussed venture capital businesses, together with strong angel investor backing and support makes the ignite100 programme a very compelling opportunity for digital companies.”
IP Group’s investment manager Nick Edgar believes there to be real value in the scheme. He said: “Early stage businesses often come with a great deal of risk and ignite100 has been developed to help offset this – the whole point of the programme being to ensure a much greater likelihood of long-term success. The combination of funding, specialist advice and networking opportunities provides a solid launch pad for those serious about taking their digital business idea forward and there will be second round funding opportunities for those demonstrating a successful business model.”
Dr Richard Exley, Head of Proof of Concept Funds at Northstar Ventures, added: “ignite100 is a much needed initiative and is a worthy follow on to The Difference Engine.
“Start ups often lack an experienced management team and our job is to plug that gap by making sure those behind each business have thought long and hard about their products and markets, and then to help them gain traction.”
An initial investment of up to £15k will be made at the outset of a 13 week mentoring programme, with the balance being invested once an individual business has reached pre-agreed goals and is proving its potential.
