Accelerators Incubators IN London - fbicgroup.com Startup and... · Accelerators and Incubators in London ... companyto!understand!the!footfall!in!the!surrounding!area!of!a!beauty!spa,!after!which!opening

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DEBORAH WEINSWIG, EXECUTIVE DIRECTOR–HEAD OF GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

• The number of tech startups in London is significantly higher than in any other European city.

• Accelerators and incubators provide intensive support to startups, often in exchange for a set amount of equity.

• Many tech startups focus on apps, thanks to advanced smartphone technology.

• Analytics is another prominent theme among startups, with new firms promising to deliver valuable insights to retailers.

• Many startups, such as Hubble and TransferWise, follow the likes on Airbnb and eBay by offering online

Accelerators & Incubators IN London

D E B O R A H W E I N S W I G E x e c u t i v e D i r e c t o r –

H e a d o f G l o b a l R e t a i l & T e c h n o l o g y F u n g B u s i n e s s I n t e l l i g e n c e C e n t r e

d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m U S : 6 4 6 . 8 3 9 . 7 0 1 7

H K : 8 5 2 . 6 1 1 9 . 1 7 7 9 C H N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

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Accelerators and Incubators in London The technology startup scene in the UK is thriving. The Guardian reports a 66% rise in venture capital funds into London’s digital sector in the first quarter of 2015 (£459 million, US$723 million) in comparison to the same quarter last year. To find talent and give companies the essential tools and guidance to improve their products or services before launching, there are many accelerator and incubator firms ready to invest in these startups.

What Are Accelerators and Incubators?

Accelerators Incubators

Duration Accelerators typically offer intensive support over a limited timeframe, with a fixed number of intakes per year.

Incubators tend to offer a longer, less intensive period of support, with less intensive period of support, with off point.

Investment Many accelerators offer pre-‐seed funding to startups in return for equity.

The majority of incubators do not invest directly but instead help startups attract investment through their networks.

Fees The majority of accelerators invest for equity rather than charging a fee upfront; some do charge programme fees but increase their investment to cover the amount.

The majority of incubators charge membership fees or rent, staggering the amount according to a company’s ability to pay.

Workspace

Accelerators put greater emphasis on training and mentorship, offering workspace for limited periods.

Long-‐term office or lab space with state-‐of-‐the-‐art facilities is usually a central part of the incubator package.

Source: Telefonica

LONDON HAS BECOME THE EUROPEAN HUB FOR TECH STARTUPS Accelerators and Incubators have become more prominent as the London startup scene has flourished. As charted below, London has seen a significantly higher number of new tech startups than other major cities in Europe.

Figure 1. How London compares: Tech startups in European cities 2005-‐2014

Source: EY

1,009

281 162 139 126 109 107 104 93 76

Lond

on

Paris

Dublin

Madrid

Amsterdam

Mun

ich

Frankfurt

Barcelon

a

Stockholm

Cope

nhagen

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Accelerators and incubators have become more prominent as the London startups scene has flourished, technology sector in particular. Not all start-‐ups in London, however, are technology companies. According to Startups.co.uk, other popular sectors for startups are such as services, products, and social/green in retail, food and drink and marketplaces.

Here, we take a look at four interesting accelerator/incubator firms that operate in London which have got a strong focus on retail and technology startups. We also offer brief profiles of some of the startups they have worked with.

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LONDON ACCELERATORS AND INCUBATORS British retailer John Lewis founded JLAB in 2014, the company’s first ever technology incubator. Now in its second year, five start-‐ups are selected for a 12-‐week program, each receiving up to £20,000 (US$31,498) initial investment per team, access to John Lewis proprietary technology, data and customers, mentorship, dedicated office space, and a chance to secure a £100,000 (US£157,494) funding and a chance to secure a contract with the retailer.

Categories for entries are:

• Meshing the Digital and Physical

• Effortless Payments

• Smart Partners

• Connected Home

• Surprise Us

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Localz was the winner of the first JLab. The company delivers tools to provide analytics for a business that enables them to truly know their customer by using micro-‐location technology tools such as iBeacons, Bluetooth Low Energy, GPS and even QR Codes.

Basic Information

Use Case Example

An example of Localz’s product that they have worked on is a way to speed up John Lewis’ increasingly popular click-‐and-‐collect service first as a trial at the retailer’s Peter Jones department store.

How this works for the customer:

• Download the John Lewis-‐app.

• Make a purchase online, and choose to collect in-‐store.

• When the customer approaches the department store to collect the order, the John Lewis-‐app sends a notification both to the customer and to the staff.

• Once the customer is at the collection point, the parcel is ready to be collected.

Year Founded 2013

Key People Tim Andrew (Co-‐Founder)

Melvin Artemas (Co-‐Founder)

Pete Williams (Co-‐Founder)

Team Size 11–50

Location Melbourne, Australia

London, United Kingdom

Funding £100,000 (US$155,226) for winning JLAB 2014

Investors John Lewis JLAB

Client Base Retailers

Healthcare

Key Clients John Lewis

Applications Location Based Services

Helps The Client in Content Delivery

Uses GPS/Micro-‐Location Tools to Locate The Customer

Can be Used in Mobile Payments

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Musaic offers a new kind of wireless hifi system made up of speakers that to be place around home. Via wifi and Bluetooth, the user can select music from their stored music collections, some 15,000 radio stations and streaming apps such as Spotify. Musaic was one of the five JLab 2014 finalists.

Basic Information

Use Case Example

The high quality audio speakers are compatible with other smart home technology such as integrated lighting systems by controlling dimmers, bulbs and switches. Currently two speakers are advertised on the company’s website for £279.95 (US$424.50) and £369.95 (US$560.90), which cannot be ordered yet, but the company promises the products are ‘coming soon’.

Year Founded 2014

Key People Matthew Bramble (CEO)

Team Size 1–10

Location London

Funding Part of John Lewis JLAB incubator programme, funded by John Lewis up to £20,000 (US$31,045)

Investors Kickstarter

Amazon Alexa Fund

John Lewis JLAB

Client Base Direct to Consumer

Retailers

Key Clients N/A

Applications A Music Speaker

Operates Wirelessly With Other Devices

Through 'Internet of Things' Compatible With Other Home Appliances

Works as a Hardware and as a Software

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A JLab 2014 finalist Tap2Connect offers retailers business intelligence through wireless labels including Near Field Communication (NFC) tags. Tap2Connect allows retailers and brands to understand customer engagement on products, track the product lifecycle and enhance aftersales service.

Basic Information

Use Case Example

The way this works is that the client orders NFC tags that have a unique QR-‐code on them. The customer can then find out more about the product by scanning the QR-‐code, eventually with a possibility to purchase the product via PayPal. The client can access metrics showing exact information on ‘Tap2Connect’ activity. Brands benefit from the service allowing them to pinpoint activity on re-‐seller level.

Year Founded 2010

Key People Lawrence Merritt (CEO)

Team Size 1–10

Location London

Funding Part of John Lewis JLAB incubator programme, funded by John Lewis up to £20,000 (US$31,045)

Investors John Lewis JLAB


Key Clients tagsmArt

John Lewis

Morris Visitor Publications

Applications Targeted for the Retail Industry

Location Marketing

Operates on Wireless Labels/NFC tags

iBeacons

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Viewsy, a JLab 2014 finalist, offers analytical tools for retailers to measure customer behaviour in-‐store and in the surrounding area. With its location analytics and performance management solution tool, Viewsy focuses on helping retailers to modernise store operations and reporting by using tools such as in-‐store wi-‐fi sensor technology, camera feeds, and point of sale data.

Basic Information

Use Case Example

An example of a client using Viewsy is Trueskin Medispa. The location analytics service allowed the beauty company to understand the footfall in the surrounding area of a beauty spa, after which opening times were extended based on the analytics showing high footfall outside operating hours, resulting in an increase in company revenues.

Year Founded 2011

Key People Odera Ume-‐Ezeoke (CEO)

Team Size 11–50

Location London

Funding US$698.1k from 2 rounds

Part of John Lewis JLAB incubator programme, funded by John Lewis up to £20,000 (US$31,045)

Investors Retailers

Venue Operators

Client Base Retailers and Five-‐Star Hotels

Key Clients Vodafone

Diesel

Allsaints

Applications Sensor Analytical Tool

Location Analytics

Business Intelligence to Understand Customer Behaviour

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Oxygen Accelerator specializes in web technology, web service, software companies, Software As A Service, cloud based, mobile applications, and digital games. As well as running programmes in London, Oxygen Accelerator also operates in Birmingham.

Mark Hales is the CEO of Oxygen Accelerator. Background includes expertise in health & social care industry, online news, gaming, social media, and technology.

Their 13-‐week accelerator programme, in which office space is provided, is broken down into three phases:

• Discover & Build -‐ Justifying assumptions, proving market viability and building a clear proposition with the help of mentors.

• Validate & Build -‐ Building the product and growing customer interest. • Invest & Grow -‐ Pulling together all the elements and gets the startup

investment ready, assisted by lawyers, accountants and pitch trainers.

At the initial stage Oxygen Accelerator offers £18,000 (US$27,292) investment per team in exchange for 8% equity. Startups with an existing funding, Oxygen Accelerator offers the same program, but is asking for 4% equity.

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Braci, a startup backed up by Oxygen Accelerator, uses a sound recognition platform to alert its users for different purposes. Braci offers ‘smart ear’ services for hearing impaired and deaf people to alert them of their surrounding environment, but also caters to elders, heavy sleepers, parents and people outdoors.

Basic Information

Use Case Example

• The service detects sounds from the environment through the microphone of the user’s smartphone, and alerts them to sounds like car horns, sirens, and traffic tones through light notifications, vibrations on smartwear such as Pebble or Android Wear If the user is listening to music, the music will automatically stop for 1-‐2 seconds.

• Braci is also compatible with smartwear such as smartwatches and tables. The company offers a baby monitor for parents by detecting sounds through a ‘Baby station’ (a smartphone/tablet/smartwear) and send a notification to the second device, the ‘Parent station’, when the baby starts crying.

Year Founded 2013

Key People Anwar Almojarkesh (Founder, CEO)

Team Size 1–10

Location Birmingham

Funding N/A

Investors N/A


Key Clients N/A

Applications Hearing Aid for Hearing Impaired, Parents and Active People

Mobile App Can Be Connected With Smartwear

Sound Recognition Platform

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A Oxygen Accelerator startup Baacco is a discovery platform for wine. The company targets the premium wine drinkers, hoping to get as share of expected 26% of wine drinkers buying wine online by 2020, up from 18% in 2015.

Basic Information

Use Case Example

Baacco offers a platform to customers who wish to go the extra mile to find the wine to meet with their preferences from some 100,000 wines from around 200 merchants listed on the website. Wines can be delivered from all around the world.

Year Founded 2014

Key People Tai Alegbo (Co-‐Founder)

Team Size 1–10

Location London

Funding N/A

Investors Sirius

Oxygen Accelerator


Key Clients N/A

Applications An Online Platform for Wine

E-‐Commerce Site to Find Wine Merchants Around The World

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On Stylect customers can browse through shoes with a function to find shoes to match with the customer’s preferences. Oxygen Accelerator is one of Stylect’s investors. According to Techcrunch, some 20 million swipes were made in the first few months of the launch of the app with the average user swiping over 400 shoes, many of which buying products on their wish list. To-‐date the app has been downloaded over 1 million times.

Basic Information

Use Case Example

Stylect calls itself as the Tinder for women’s shoes. Ultimately a shoes e-‐commerce platform for brands, Stylect offers a function to browse through a variety of shoes by swiping right or left, so-‐called ‘hot-‐or-‐not’ interface. Based on the likes and dislikes from the selection of over 300,000 shoes from 10,000+ brands listed, the app can suggest products to match with the user’s preferences.

Year Founded 2014

Key People Giacomo Summa (Co-‐Founder, CEO)

Darius Jankauskas (Co-‐Founder)

Hadi Laasi (Co-‐Founder, Head of Product)

Team Size 1–10

Location London

Funding $688.5k in 4 Rounds

Investors Forward Partners

Oxygen Accelerator

Start-‐Up Chile


Retailers

Key Clients N/A

Applications A Platform for Womens Shoes

A Fashion Mobile App

E-‐Commerce Site to Browse and Buy Shoes

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Vidsy, invested by Oxygen Accelerator, is a platform that crowd-‐sources the production of micro video content for brands.

Basic Information

Use Case Example

• Brands can invite people from Vidsy’s creative community of creators to make relevant videos for the brands to develop a direct connection with a millennial audience and drive engagement online.

• Clients include Carphone Warehouse, Cornetto, Sony and Post Office. Vidsy creators produced videos as part of Sony Xperia’s #Ican campaign, during which these videos generated 46% higher reach than other content uploaded to Facebook.

Year Founded 2014

Key People Gerard Keeley (Co-‐Founder, CEO)

Team Size 1–10

Location London

Funding N/A

Investors Oxygen Accelerator

Angels Den

Client Base Brands

Creators

Key Clients Cornetto

Lipton

Sony

Applications Ad Targeting

Online Video Advertising

To Increase Activity on Social Media

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Seedcamp specializes in investments in seed, startup and early stages. They seek to invest in industries such as analytics, automotive, big data, clean tech, communications and messaging, e-‐commerce and market places, fashion, geo-‐location, mobile, social networks and groups, and software and platforms.

Partner & Co-‐Founder Reshma Sohoni’s expertise includes tech, business, commercial drive and marketing.

Office space is provided at the Google Campus London.

In the pre-‐seed stage they offer two options for investment:

• The 3% option – The investment is via buying a warrant, which allows the startup to get the benefits of Seedcamp’s programme for minimal dilution.

• €75K for up to 7% -‐ Initially Seedcamp invests €25k (US$39.4k) for 5% with optional further €50k (US$78.7k for no more than 2%, totalling €75k (US$118.5k) for 7%.

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Hubble is a marketplace for companies with space to rent out, and for small companies to find office space. Seedcamp is one of the investors of the startup. Business strategy similar to Airbnb’s, Hubble operates as a marketplace for workspaces.

Basic Information

Use Case Example

• Targeting startups, on Hubble hand-‐picked companies can rent their free or spare office space to tenants on flexible monthly contracts.

• Tenants can choose from over 500 spaces in London, varying from shared to private offices.

Year Founded 2013

Key People Tushar Agarwal (Co-‐Founder, CEO)

Team Size 1–10

Location London

Funding $812.2k in 1 Round from 10 Investors

Investors Andreas Pouros

EF (Entrepreneur First)

Guy Westlake

Ivan Mazour

Jackson Hull

Jonathan Galore

Roualeyn Cumming-‐Bruce

Seedcamp

Sheraz Dar

Spire Ventures

Client Base Startups

Entrepreneurs

Companies with Office Space to Rent

Key Clients N/A

Applications Allows Companies and Individuals to Let Or Rent Office Space

Marketplace for Entrepreneurs and Startups

Business to Business

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Shoprocket is an e-‐commerce tool for businesses to start operating and selling products and services online. The startup is invested by Seedcamp. The company offers a solution that lets a company to add eCommerce functionality to their existing website in minutes.

Basic Information

Use Case Example

• The client sets up an account with a link to their company’s website and Shoprocket completes rest of the process offering customized design integrated into the website.

• Getting started is free, after that they charge a flat fee of 2% on transactions.

Year Founded 2013

Key People Anthony Gale (Founder, CEO)

Team Size 11–50

Location London

Funding N/A

Investors Seedcamp


Restaurants

Key Clients N/A

Applications Software as a Service

E-‐Commerce Tool for Businesses to go Online

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Spoke is a made-‐to-‐measure e-‐commerce company offering washed cotton and flex chinos and shorts for men. The company is invested by Seedcamp.

Basic Information

Use Case Example

• The customer can order a measure for free from Spoke website, then complete the made-‐to-‐measure process by choosing the color, waist size, build and leg length

• Spoke clothes are made in Europe with teams in London and Porto, Portugal. Prices go up to £89 (US$138) per item.

Year Founded 2013

Key People Ben Farren (Founder, Director)

Team Size N/A

Location London

Funding $272.9k / Seed

Investors Seedcamp


Key Clients N/A

Applications E-‐Commerce Website for Tailored Mens Fashion

Online Shopping

Made To Measure

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Transferwise offers cross-‐border money transactions for individuals and businesses. One of the investors for Transferwise is Seedcamp.

Basic Information

Use Case Example

• TransferWise is an easy-‐use online p2p money transfer platform from the developers of Skype. The basic principle behind the service is to provide its users money saving when transferring money abroad. The company says they charge ten times less than banks.

• The company’s customers transfer over £500 million (US$ 769 million) monthly.

Year Founded 2010

Key People Kristo Käärmann (Co-‐Founder, CEO)

Taavet Hinrikus (Co-‐Founder, Executive Chairman)

Team Size 201-‐500

Location London

Funding $90.4M in 5 Rounds

Investors Andreessen Horowitz

Firestartr

IA Ventures

Index Ventures

Richard Branson

Seedcamp

Valar Ventures

Kima Ventures

SV Angel

Client Base N/A

Key Clients N/A

Applications Peer to Peer Money Transfer Tool

Small and Medium Businesses' Money Transfers

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London-‐based TrueStart operates as a subsidiary of True Capital, a private equity and venture capital firm specializing in seed stage startups. TrueStart specializes in retail and consumer innovation with a strong focus on e-‐commerce and in-‐store technology that deliver retailers consumer behaviour analytics as well as to introduce innovative products and services to consumers. They offer office space for the startups to begin with.

The CEO of the company is Baz Saidieh, who has expertise in electronic and manufacturing industries, as well as Biotech, FMCG and F1.

The types of funding:

• The collection program runs twice a year with investments between £0 -‐ £50,000. In exchange for a £25,000 (US$39,374) investment TrueStart is asking for a 4.5% equity, and respectively for £50,000 (US$78,747) 9% equity.

• For start-‐ups that are not asking for cash, but are looking to benefit from TrueStart’s network and support, TrueStarts is asking for 3% equity.

• An all year round seed program is also running with investments up to £750,000 (US£1,181,210).

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Truestart startup ADAY is a fashion brand offering multi-‐function clothing. With the innovative fabrics, ADAY is targeting busy women. The e-‐commerce platform currently focuses on the US and the UK markets.

Basic Information

Use Case Example

ADAY markets itself with clothing that can be worn to the office, to cocktail and to the gym. The basic principle is that you can wear same clothes throughout the day to different occasions.

Year Founded 2014

Key People Nina Faulhaber (Co-‐Founder)

Meg He (Co-‐Founder)

Team Size 1–10

Location London

Funding N/A

Investors TrueStart


Key Clients N/A

Applications Fashion Brand

E-‐Commerce Fashion for Women

Multi-‐Function Clothing

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Hoxton Analytics specializes in footfall analytics through customers’ footwear. The startup took part in Truestart’s accelerator programme. Hoxton Analytics is a tool to monitor retailers footfall and shopper demographics through a camera and a processor that are installed low in the doorway or corridor to gather images of people’s footwear.

Basic Information

Use Case Example

• With the developed technology the tool can identify the customer’s gender with 75%-‐80% accuracy and count footfall with 95% accuracy, according to Financial Times.

• The retailer can use findings from Hoxton Analytics in targeted advertising and campaigns and staffing schedules for instance.

Year Founded 2014

Key People Owen McCormack (Founder, CEO)

William Thomas (Co-‐Founder, CTO)

Team Size N/A

Location London

Funding N/A

Investors N/A


Key Clients n/a

Applications Retail Analytical Foot-‐Fall Tool

Can Be Used for Targeted Advertising

Help Understanding and Measuring Customer Base

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With wi-‐fi analytics, Presence Orb offers companies in retail, advertising and hospitality to understand customer behaviour in their premises. TrueStart invested in the startup.

Basic Information

Use Case Example

• Presence Orb is a Wi-‐Fi analytics tool that uses wi-‐fi networks and wi-‐fi signals from customers’ mobile devices to monitor their movements in retail premises.

• According to Retail-‐Week, with Presence Orb the retailer can passively learn from the customer behaviour within their stores with technology that is able to track return visits and peak visiting times.

• Presence Orb serves businesses in retail, advertising, travel and hospitality in business decisions such as store placement, marketing ROI, displays, layout and more.

Year Founded 2013

Key People Thomas Sheppard (Founder, CEO)

Team Size 1–10

Location London

Funding N/A

Investors TrueStart

Client Base Retail

Advertising

Hospitality

Key Clients N/A

Applications Analytical Tool Using Wi-‐Fi Analytics

Can Be Used for Targeted Advertising

Analytics Through Technology Used By Customers

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Price Trakker, a startup funded by TrueStart accelerator, offers price comparison tools for companies to keep track of competitors’ prices.

Basic Information

Use Case Example

• Price Trakker is an online tool providing retailers and brands a competitor price intelligence platform handling millions of price points on a daily basis.

• Brands can track the prices of their products re-‐sellers are selling to in order to monitor the desired brand image.

• With Price Trakker industries from FMCG to clothing and electronics can monitor seasonal price changes and products lifecycles.

Year Founded 2012

Key People Hemang Nathwani (Founder, CEO)

Team Size N/A

Location Slough

Funding N/A

Investors TrueStart


Brands

Industries

Key Clients Evans Cycles

redhotsunglasses

Jewson

Wiggle

Activ Instinct

Maplin

Applications Analytical Tool to Understand Competitors Prices

Focus on E-‐Commerce

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Deborah Weinswig, CPA Executive Director—Head of Global Retail & Technology Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: +852 6119 1779 [email protected] Filippo Battaini [email protected]

Marie Driscoll, CFA [email protected]

John Harmon, CFA [email protected]

Aragorn Ho [email protected]

John Mercer [email protected]

Shoshana Pollack [email protected]

Kiril Popov [email protected]

Jing Wang [email protected]

Steven Winnick [email protected]

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Accelerators Incubators IN London - fbicgroup.com Startup and... · Accelerators and Incubators in London ... companyto!understand!the!footfall!in!the!surrounding!area!of!a!beauty!spa,!after!which!opening