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Business Acceleration Centres

What is a business acceleration centre? Where did the concept originate? What services do they provide for businesses? Business growth acceleration centres or accelerators originated in the US with seed accelerator programmes such as YCombinator and TechStars which invested money into promising start-ups, along advice, mentoring and contacts, in return for an equity stake.

The US accelerator programmes also offered ‘bootcamp’-style training programmes, where promising entrepreneurs participate in an intensive programme of education, workshops and testing, to prepare them for the realities of business life and equip them with skills such as pitching and marketing.

The accelerator model first came to prominence in the UK in 2003 with the establishment of the SETsquared Business Accelerations Centres by the Universities of Bath, Bristol, Southampton and Surrey. The SETsquared Centres provided mentoring, business review panels and investor pitching opportunities to entrepreneurs, start-ups and university spin-outs. An additional SETsquared Centre was opened in Exeter in 2010 when the University of Exeter joined the SETsquared Partnership.

Other prominent Business Accelerators include Seedcamp, set-up by Saul Klein and Reshma Sohoni London in 2007. The Seedcamp model combines intensive coaching with seed funding and access to additional investors; Springboard which is run by Jon Bradford; and Oxygen, which has recently been established in Birmingham with the support of serial entrepreneur, Mark Hales.

There is also a network of intensive shorter-term courses currently taking root all across the country. London-based company Pembridge has made such events a speciality, having organised short courses such as Fast Company 2 in Liverpool and the Growth Accelerator, which takes place in the West Midlands. Furthermore, a number of higher education institutions, including Thames Valley University and the University of Bath, have begun offering their own accelerator-style courses of coaching and mentoring for local start-ups and prospective entrepreneurs.

Some Business Acceleration Centres offer funding to those companies they deem sufficiently promising, for example, the Springboard accelerator programme offers each entrant up to £15,000 of investment capital, while Oxygen offers around £20,000, and most most accelerators have a rigorous set of criteria for admission, usually concerning the founders' ambitions for the company, ownership of Intellectual Property, investment received to date, milestones, revenues an customers.

Key UK Business Acceleration Centres

SETsquared Founded: 2003 Based: Bath, Bristol, Exeter, Southampton, Surrey Reach: UK SETsquared accelerates the development of technology-based ventures from initial idea to commercialisation through direct links to the research strengths of five of the UK's leading universities and a network of experienced entrepreneurs, technology specialists, investors and business professionals. SETsquared has directly supported over 650 companies, helping them raise over £0.75bn of start-up funding and creating over 1,000 new jobs. SETsquared's Centres accommodate around 100 high growth potential, knowledge-based ventures and provide them with Business Support, Investment Support and Flexible Office Space.

Seedcamp Founded: 2007 Based: London Reach: Europe-wide Key events and services: Week-long learning event in London during September, when carefully selected start-ups receive coaching and networking opportunities. Also hosts ‘mini-Seedcamp’ events throughout the year in UK, Europe and the US. Other events and services: Two-week trip for selected Seedcamp companies to the USA, providing advice and coaching. Also provides a ‘Demo Day’ where invested companies can showcase their work, and an ‘Investor Day’ where incubated companies meet external investors. Funding available per start-up: €50,000 for any start-up which wins a Seedcamp event, in return for an 8-10% equity stake. Mentoring network: 600-strong band of seed investors, serial entrepreneurs, product experts, HR and PR specialists, marketers, lawyers, recruiters, journalists and venture capitalists. Target industries: Digital, tech.

Springboard Founded: 2009 Based: Cambridge Reach: UK Key events and services: 13-week course of one-to-one mentoring and advice for selected companies. Funding available per start-up: £5,000 per founder, to a maximum of £15,000. Mentoring network: 100 mentors from various background and sectors. Target industries: Various How to apply: Springboard runs competitions for interested firms throughout the year.

Oxygen Founded: 2011 Based: Birmingham Science Park Reach: Worldwide Key events and services: A 13-week incubation programme for selected companies, including accommodation, mentoring, and specific coaching for pitches and business plan development. The programme culminates in an investor day. Funding available per start-up: Up to £20,000 (although bear in mind this a loan, repayable once a sufficient level of investment or profitability has been reached). Mentoring network: Tech entrepreneurs as well as legal and financial experts. Target industries: Primarily tech, but scope for promising companies from other areas.