A London-based accelerator program is looking to invest a total of £2.5m in 100 startups, it was announced today.
Firebox100, which claims to be the UK’s largest accelerator programme, will invest £25,000 in 100 different startups for 7% equity.
Startups will also receive business support through the accelerator.
Hands off approach
The Firebox100 fund was set up under the belief that most accelerator programmes are over-prescriptive. The accelerator promises more hands-off support during startups’ early stages, providing “funding and comprehensive light-touch support to get their ventures off the ground”.
Ecodesk founder Robert Clarke, who leads Firebox100, explained “that great businesses need a head start” and that the fund wants to offer “a much-needed boost”.
On top of the equity, the accelerator charges an administration fee of around £1,500, a setup charge of £295, and a monthly admin cost of £295 for the first six months.
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In total, the startups will have to pay back just over £3,500 over six months.
Firebox100 are looking for startups that “have more than a great idea,” said Clarke.
They will have built the MVP or prototype, started selling or created tangible traction.
Support and seminars
Firebox100 will dedicate a small team of business advisors to help the startups and will offer an online seminar series for one hour, once a week.
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Tim Kay, Technology Start-Up Evangelist at KPMG and a Firebox100 business advisor, praised the “real impact” that the accelerator’s investment will have on the startups.
There are a growing number of channels to support entrepreneurs in the UK, but securing funding can still be very time consuming and expensive for businesses, where every minute and every penny counts.