Funding Innovation - icreate

Wilton WednesdayWilton Centre

Dr Michael Anderson, Business Development, Wilton Centre

Outline

• Background– Innovation Accelerator– Accelerator programmes

• icreate– The programme– Delivery– Timescales

• Benefits– SMEs– Investors– Innovation Partners– Wilton Centre

Physical IncubatorThe Innovation Accelerator

Business Development support

Accelerator programmes

• Since mid 2000’s a new method of incubating technology start-ups with these features :

– Open, competitive application process– Provision of pre-seed investment– Focus on small teams not founders– Time limited support of events and mentoring– Cohorts or “classes” of start-ups

• Successful models operated in USA and Europe(e.g. Techstars, Y Combinator and Seedcamp) but limited to IT/Digital start-ups and modest initial investments

Ref: NESTA discussion paper: The Startup Factories June 2011

icreate Accelerator Programme

• An annual cohort of 3-4 technology based SMEs to be recruited into the programme

• Basis of programme is to nurture and accelerate growth of high potential new products and processes in the Wilton Centre Innovation Accelerator incubator or adjacent areas

• The prize for the SME is investment funds(£50-£150k), support services, development programme, “heart of industry” positioning and mentorship; leading to fast track growth

• The prize for the investor is UK-wide filtered deal flow and enhanced probability of success/growth in a highly supported environment

• The prize for partners is active participation in new business development, brand positioning, co-investment/follow-on investment opportunity and service provision

Delivery through Innovation Partners

• Teesside University• Finance for Business

North East• Rivers Capital• Northstar Ventures• IP Group• Wilton Centre• NESTA• Tees Valley LEP• CPI

• Ward Hadaway• UNW• PERA• Optimat• Siemens• Barclays• Lombard Asset Finance• Redcar & Cleveland CC• HR Helping Hand• NEPIC

Timescales

• Set up Q4 2012• 1st competition opens January 2013• 1st competition closes end February 2013• Shortlisted candidates for up to three investments of up

to £150,000 each by April 2013• Due Diligence by funders March – May• Winners by June 2013

Benefits of icreate

• SMEs– Investment, support, environment(“heart of industry

positioning”), network

• Investors– Deal flow, risk management, sector specialism

• Innovation Partners– New business opportunities, network synergies,

exposure

• Wilton Centre– Potential tenants, business development capability,

awareness, enhanced probability of client growth