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.
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.
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.
Startups that are interested can apply on the Firebox100 website.