New ‘pop-up’ shop set to open in Surrey

Opening will be sixth outlet in a year for PopUp Britain campaign
Written by The Startups Team
Published on 17 May 2013

National entrepreneur campaign PopUp Britain is set to open its newest ‘pop-up shop’ for online retail entrepreneurs in Surrey, following the opening of its flagship King’s Road outlet this month.

The outlet will be opened on June 5 in ‘The Mall’ shopping centre in Camberley and will give local and UK-wide start-ups the chance to test the success of their products in a busy shopping area.

The Camberley store is set to run for six weeks and can hold six businesses at a time, with each business paying a nominal fee to cover the cost of a two-week stint.

It follows last week’s launch of the campaign’s first permanent store, located in a former mail sorting warehouse on the King’s Road in Chelsea.

PopUp Britain is a nationwide campaign run by entrepreneur network StartUp Britain that aims to connect online retail start-ups with the growing number of empty High Street shops across the country to help them to establish a physical presence.

The Camberley store will be the sixth outlet in a year and the second outside London for the nationwide campaign, with more openings planned over the summer.

The campaign also announced that it will partner with the National Skills Academy for Retail to create a ‘boot camp’ for aspiring pop-up shop tenants ahead of the Camberley opening. The camp will give start-ups a crash course in the world of retail to help them maximise the benefits of their experience.

Emma Jones, co-founder of StartUp Britain, said: “Following on from the successful launch of PopUp King’s Road last week, we’re keen to keep up the momentum of openings.

“PopUp Camberley is our second outside London and our first in a shopping centre. We are looking forward to helping yet more retail entrepreneurs onto British high streets.”

Businesses interested in applying should visit www.popupbritain.com/apply


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Olympic Park’s £1bn digital business hub set to boost Tech City cluster

iCITY to invest £100m more to transform existing Olympic press and broadcast centres into enterprise campus
Written by The Startups Team
Published on 17 May 2013

Mayor of London Boris Johnson today announced the final Olympic venue deal has been secured promising a £450m boost to the UK’s GDP and up to 6,500 new jobs.

In association with the London Legacy Development Corporation, iCITY – the real estate and data centre joint venture responsible for the Press and Broadcast Centres – has pledged to invest a further £100m into transforming the current site into a creative and digital business hub.

The major investment into the location used for press and broadcasting during the Olympics will come from real estate investment and advisory business Delancey and data centre operator Infinity SDC, which will provide its services from the Park.

It takes the total outlay against the site to £1bn, which includes construction costs of £297m, along with £500m generated from infinity clients and £270m from secured tenants.

iCITY expects the development to generate a £340m contribution to the local economy along with 4,500 new jobs on its site and a further 2,000 in the area surrounding the Queen Elizabeth Olympic Park.

It will ultimately feature three main buildings: a 300,000 square foot innovation centre; a 750 seat auditorium; and a 650,000 square foot building housing educational space, broadcast studios, office space, and a state-of-the-art data centre.

Tenants already on board include BT Sport, Loughborough University, and Hackney Community College. TechHub, the start-up community and workspace created by TechCrunch Europe editor Mike Butcher and CEO Elizabeth Varley, will also build on its Tech City presence, where it is backed by Google and other partners.

The hub for technology entrepreneurs will create an accelerator and incubator space for start-ups within the iCITY confines. Further details have yet to be announced but iCITY spokespeople insisted that the business park will offer affordable space for start-ups.

To continue to breed a fast-growth, innovative, tech business culture in the UK, iCITY will amount to an extension of Tech City, claimed mayor Boris Johnson and will house both start-up and established businesses to promote successful enterprise.

Mayor of Hackney, Jules Pipe, concurred: “We’re encouraging a swathe of tech, starting in Shoreditch, travelling through Hackney and culminating in iCITY. It’s about synergy and creating a space where start-ups can grow.”

Responding to a question from Startups.co.uk, mayor Johnson was positive the new digital community would not only encourage Silicon Valley investments, but potentially create businesses that would rival existing large US tech companies: “There’s no reason at all why this area shouldn’t be the home of not just small start-ups but fast-growth companies.

“Why is it that this country hasn’t produced an Amazon or a Google or a Facebook? The answer is, there is no reason why. It’s going to happen and I wouldn’t be surprised if it happens in iCITY.”

Richard Gibbs, business development director for iCITY, added: “The iCITY proposal is slighter easy to understand if you come from that side of the pond. They understand the campus nature of the nature of the space.”

“We’re working very closely with American investors and I look to go out again this summer. We have some impressive, strong, leading innovation here and I’m confident we can secure some long-term partnerships.”

 

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Crowdcube raises £1.5m using its own website

Investment sets new crowdfunding world record
Written by The Startups Team
Published on 17 May 2013

Online investment platform Crowdcube has raised £1.5m of funding in three days using its own website, setting a new world record for investment raised via crowdfunding.

The site met its funding target of £250,000 within five hours of the pitch being advertised to existing investors.

A further £1.25m was invested within 48 hours of the opportunity going live to the public, setting a new world record.

A 21% stake in the business was offered in exchange for the £1.5m investment, which puts the company’s valuation at around £7.1m.

It follows an initial crowdfunding round in December 2011 when 162 people invested £320,000 in the company.

The investment will be used to employ new staff members, to promote the platform to investors, and to support Crowdcube’s plans for international expansion; initially planned for Sweden, Brazil and the USA.

Launched in 2011, Crowdcube became the 47th business to meet its funding target using the site, which allows businesses to advertise and gain investment from members of the public.

Since its launch, the site claims to have raised over £8.2m for British businesses, with 34,000 registered investors using the service.

Darren Westlake, co-founder and chief executive of Crowdcube, said: “The response from our members was truly overwhelming and really demonstrates the power of equity crowdfunding to provide a platform for people to support businesses they think are worthy of investment.

“To raise £1.5 million in only three days is an astonishing achievement and it puts us in a strong position to realise our growth ambitions on behalf of our new investors.”


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Cashplus launches ‘instant approval’ online business account

Advanced Payment Solutions service claims to allow business owners immediate use of account regardless of credit score or trading status
Written by The Startups Team
Published on 17 May 2013

Online banking service Cashplus has announced the launch of a new business current account, which it claims will allow users to establish an account instantly without needing to wait for approval.

Cashplus, which is wholly owned by e-payment specialists Advanced Payment Solutions (APS), claims that the instant account is the first of its kind in the UK.

The service will allow business owners to receive an account number and sort code to begin using immediately, following the completion of an online application process.

The company claims business owners currently have to wait up to four weeks for current accounts set up with high street banks to become fully functional.

Companies House research found that of the 450,500 new companies established in 2012, almost half of applications for business current accounts will be declined by banks.

The Cashplus account claims to address this shortfall, with businesses guaranteed an online approval following completion of verification checks – regardless of their credit score or whether or not they are currently trading.

Richard Wagner, chief executive of APS, said: “Businesses increasingly want to self-service online and they don’t want to have to go through a lengthy process and travel to a branch to open a bank account.

“We’ve reduced the traditional multi-step process to a one-stop five minute activity that can usually be done completely online.”

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Three new franchisees join Mac Tools network

Latest stage in growth for UK tool distributors
Written by The Startups Team
Published on 17 May 2013

A trio of new franchisees have joined tool retailers Mac Tools, adding to a network of more than 115 distributors in the UK. Franchisees Neil Dulson, Andy Davies and Steve Marchant are the latest additions to the franchise network, which allows its franchisees to sell professional tools to trade businesses in their local area. Mac Tools is part of American tool giant Stanley Black & Decker, which employs more than 30,000 people worldwide and is worth an estimated £7bn. A Mac Tools franchise package costs £50,000, which includes the costs of stock, business and marketing training and the provision of ongoing support from a business development manager. New franchisee Steve Marchant commented: “After initial approaches and investigations, I thought I could see an opportunity, at 55 years old, to improve my standard of living, improve my job satisfaction, improve my retirement outlook and hopefully build a business that can be kept in the family. After days out with other franchisees I saw what can be achieved after one year, 10 years and 12 years. The rewards, job enjoyment and satisfaction were obvious and lead to an easy decision to pursue the chance of becoming a Mac-man.” Andy Davies added: “The training and support network make such a difference. They want me to succeed and, even though I have a sales background and no motor trade background, I feel very much at home at Mac Tools. “My first month has been a learning curve and hard work but I have already sold my first toolbox, which was definitely my favourite moment so far. I believe that people buy form people, so customer rapport and service are key to long-term success.”

For more information on becoming a franchisee 08450 6000 60 or email franchise@mactools.co.uk.

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Welsh start-up Veeqo raises £120,000 in Seedrs funding

Swansea-based e-commerce firm marks second round of investment on crowdfunding platform
Written by The Startups Team
Published on 17 May 2013

Welsh tech start-up Veeqo has closed its round of funding on crowdfunding site Seedrs, raising £120,000 from 32 investors.

The investment marks the second time Swansea-based Veeqo has used the online fundraising platform, following a previous round that raised £30,000 from 66 investors.

Veeqo, started by e-commerce retailer Matt Warren, is a web-based app for online retailers which claims to allow its users to manage all their orders and stock in one place without having to keep track of a multitude of websites.

The funding will allow further development for the firm, which is part of a small but growing tech sector in south Wales.

Matt Warren, founder of Veeqo, commented: “Crowdfunding itself was the main draw to how I decided to raise investment. Angel investment can be a tricky process and you often have to go down and meet each angel personally, which can be a time consuming process.

“It makes more sense for start-ups, angels and other investors to all be together to use one platform. An advantage I saw to Seedrs was the nominee share structure and the platform itself looked nice and just worked better than the others.”

Warren also lends his help to tech start-up community Swansea Start, sharing his experiences with crowdfunding and as an entrepreneur in the region in an effort to boost the south Wales tech sector.

He said: “There was nothing in this area for start-ups. At the time I didn’t even know any other tech start-ups existed. But with two big universities, there’s a lot of talent coming out of this area and a lot of it will be lost to London.

“Not only that, but Swansea is a great place to live with the beach in the bay and mountains behind. Compared to London the start-up scene isn’t as big, but in the past three or four months of working with entrepreneurs though Swansea Start we have attracted a lot of people. We’ve also been talking to the local universities and council and are working towards creating a tech hub down here in Swansea.”

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Tailoring your business plan to different audiences

How to adjust the content and presentation of your business plan to capture your reader’s attention
Written by The Startups Team
Published on 17 May 2013

As a general rule, entrepreneurs wisely want to keep the business model at the heart of their business plan a secret. But, with that in mind, they are in danger of writing as though they will be the main, perhaps even the only, reader.

Unless you intend to start up on your own, using your own money, you should write your business plan with other readers in mind. There are ways to limit the danger of your business idea from being ripped off by anyone reading your business plan – using a non-disclosure agreement (NDA), for example. (Non-disclosure agreements are confidentiality agreements that bind recipients to maintain your ‘secrets’ and not to take any action that could damage the value of that ‘secret’. This means that they can’t share the information with anyone else or act on the idea themselves, for a period of time at least.)

Tip: You can use NDAs with potential clients, suppliers, advisors, investors or even employees if you have to share confidential information that could threaten the success of your venture if it fell into the wrong hands.

Tailoring your business plan

A business plan is not a ‘one size fits all’ document, so the more it appears to have been written specifically for a particular reader the more likely they are to read it and have empathy with the contents. Below are some of the people you may want to show your business plan to, and some ideas on how you should tweak the contents to meet their needs. You don’t have to write completely different business plans for different types of reader. Just include (or limit) certain pieces of information, emphasise some parts more and perhaps change the running order.

Remember, you have to be able to justify every line of your business plan and the thinking behind it. So expect your readers to probe; the style of presentation is just to capture their attention in the first place. The main audiences for your business plan are described below.

Your bank manager

Bankers (and indeed anyone lending you money) are looking for some form of asset security to back their loan – usually a property such as the family home. They also want the near certainty of getting their money back, so they don’t want to hear too much about meteoric growth prospects; that usually just means pumping in more cash before the business becomes profitable. They will also want to charge an interest rate that reflects current market conditions and their view of the level of risk of the proposal. That in turn means bankers will usually expect a business to start repaying both the loan and the interest on a monthly or quarterly basis immediately after the loan has been granted. Bankers also hope the business will succeed so that they can lend more money in the future and provide more banking services such as insurance and tax advice to a loyal customer.

Investors

Investors don’t expect a new business to have many assets so they are up for taking a risk. But because the inherent risks involved in investing in new and young ventures are greater than for investing in established companies, they expect the chance of larger overall returns. To do that, fund managers must not only keep failures to a minimum; they have to pick some big winners too – ventures with annual compound growth rates above 50% – to offset the inevitable mediocre performers.

Typically, a fund manager would expect, from any 10 investments, one star, seven also-rans and two flops. It is important to remember that, despite this outcome, venture capital fund managers are only looking for winners. So to appeal to this audience, your plan needs to emphasise the prospects of fast growth and big returns. They will expect you to recruit a team of great people, shell out for patents and be cash hungry for a year or two. Not only are venture capitalists looking for winners, they are also looking for a substantial shareholding in your business. You have to be forming a company from the outset and show that you understand that having 70% of a big business is worth a lot more than a 100% share in a small one.

Tip: If you’re putting together a business plan to raise funding, the plan becomes even more critical in determining the success or failure of your business. “It is the initial selling document and it will either get you in the door or not,” according to Paul Murray of Europe’s largest venture capital firm 3i.

Key employees or partners

When anyone in this audience reads your business plan they want to hear about unlimited growth prospects and exciting opportunities, all to be realised taking very little (or better still no) risk. If the employee you want to recruit is leaving a good job to join you, there is usually a reason. Often they just want the opportunity for recognition or career progression. While a banker may consider creating a management position as an unnecessary overhead for a young business, you will need them if you are to grow. Your business plan is a good way to show how, when the business achieves its goals, there will be opportunities for promotion. Partners share some of the characteristics of employees, but in particular they will want to read about the opportunity to own a part of a worthwhile venture, perhaps also being able to build on that stake as the firm grows.

Sanity check

That’s not to imply that anyone starting a business or planning to grow their business is in any way mad; what would be foolish is to embark on it without a business plan. Preparing a business plan is essential if you are to both focus your ideas and test your resolve about entering or expanding your business. It is also a chance to make your mistakes on paper rather than in the marketplace. Once completed, your business plan will serve as a blueprint to follow, which, like any map, improves the user’s chances of reaching the destination. Despite the obvious benefits, thousands of would-be entrepreneurs still attempt to start without a business plan. The most common among these are businesses that either appear to need little or no capital at the outset, or whose founders have funds of their own. In both cases it is believed unnecessary to expose the project to harsh financial appraisal.

The former hypothesis is usually based on the easily exploded myth that customers will all pay cash on the nail and suppliers will wait for months to be paid. In the meantime, the proprietor has the use of these funds to finance the business. Such model customers and suppliers are thinner on the ground than optimistic entrepreneurs think. In any event, two important market rules still apply: either the product or service on offer fails to sell like hot cakes and mountains of unpaid stocks build up, all of which eventually have to be financed; or it does sell like hot cakes and more financially robust entrepreneurs are attracted into the market. Without the staying power that adequate financing provides, these new competitors will rapidly kill off the entrepreneur. Those would-be entrepreneurs with funds of their own, or worse still with funds borrowed from ‘innocent’ friends and relatives, tend to think that the time spent in preparing a business plan could be more usefully (and enjoyably) spent looking for premises, buying a new car or installing a computer.

In short, anything that inhibits them from immediate action is viewed as time-wasting. As most people’s perception of their business venture is flawed in some important respect, it follows that jumping in at the deep end is risky – and unnecessarily so. Flaws can often be discovered cheaply and in advance when preparing a business plan; they are always discovered in the marketplace, invariably at a much higher and usually fatal cost. There was a myth at the start of the internet boom that the pace of development in the sector was too fast for business planning. The first generation of dotcom businesses and their backers seemed happy to pump money into what they called ‘killer applications’. These were little more than brief statements of intent supported with wishful thinking. Now only ventures with a well-prepared business plan have any chance of getting off the ground or being supported in later stage financing rounds.

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Barclays launches free online community for small businesses

Small business owners invited to list their companies, bid for business, or seek advice on Barclays Connector
Written by The Startups Team
Published on 17 May 2013

Barclays has released a free online service, designed to create a network for small businesses looking to gain new customers and seek advice.

Available to both Barclays customers and non-customers, the Barclays Connector allows users to list their company for free and post specific projects and services that they require, as well as enabling them to respond to and bid for work with other users.

After giving users the option of signing in through LinkedIn, the platform uses matching technology to organise businesses according to their expertise.

It is hoped that alongside helping users to find new customers, suppliers and services, the platform will help entrepreneurs to support each other with the Q&A feature, which allows users to rate responses according to helpfulness.

In addition to advice from other users the platform, which has collaborated with partners including UK Trade and Investment (UKTI) and the Association of Chartered Certified Accountants (ACCA) offers advice guides on a range of business issues, including finance, planning and branding.

Richard Exton, managing director of transactional business commercial and proposition at Barclays told Startups: “We designed Connector with the aim of combining two key things that small business owners need: suppliers and services to grow their business and help and support from other entrepreneurs.

“Through the free online community, we hope to equip small business owners with the tools they need to grow, whether that’s through enabling them to directly bid for business, or by providing them with answers to their business queries.”

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Hiring staff: What are the different employment options for your business?

From permanent employees to employing self-employed staff or freelancers, we look at the pros and cons of each staffing option available to your business start-up
Written by The Startups Team
Published on 17 May 2013

Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality.

There’s a tendency for businesses to think that the recruitment process is exclusively for taking on a full-time, permanent employee. That’s a big commitment and, for many people, a daunting prospect.

But a conventional full-time contract isn’t the only option. There are a number of ways you can employ people, depending on what best suits your business and your circumstances. Monday to Friday, 9 to 5 may work well, for example, if you run an office-based business where customers and clients expect to be able to contact you during normal weekday working hours.

A retail business, however, might be open long hours, seven days a week, and would probably need a team of part-timers working a variety of hours to cover late nights and weekends. Some industries, such as the media, typically find their need for staff fluctuates depending on the ebb and flow of projects that come in. Other businesses, such as tourism, may experience seasonal peaks and troughs.

It’s important to be really clear about exactly when and how often you need people to be working for you before you make the decision about which employment option to go for. Otherwise, you may find yourself struggling to cope with a heavy workload with too few people – or with employees who are sitting around twiddling their thumbs because there isn’t enough for them to do.

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Key questions to ask

Try asking yourself the following questions:

  • How many hours do I need someone to work each week?
  • Will I need that number of hours all the time – or only some of the time?
  • Am I sure there will be enough work to keep a new employee fully occupied during those hours? … Is the workload likely to vary enormously – or only slightly – from week to week?
  • Are there likely to be seasonal peaks and troughs? If so, when are the key times?
  • Can one full-time person meet my needs – or would I be better off with a combination of people working under different arrangements (full-time, part-time, temporary, etc)?

These questions may seem obvious, but it’s surprising how many businesses rush into contractual arrangements that don’t actually meet their needs. A bit of careful thought at this early stage can save a lot of time, money and angst in the long run. The following are the employment options that are available, depending on your needs.

Permanent employees

A permanent employee can be full-time or part-time. They have an ongoing employment contract with you and you have to fulfil a range of obligations to them (paid holiday, sick pay, etc) depending on how long they have been with you and on the terms of the contract you enter into with them.
The pros: predictability, regularity, loyalty, potential.
The cons: management time, full range of legal obligations, lack of flexibility.

Fixed-term contract employees

A fixed-term contract employee has a contract with you, but only for a set time (such as six months) or until a specific task or project has been completed. They have the same employment rights as a permanent member of staff – but your obligations to them only last for the duration of the contract. This can work well in a number of scenarios. You may want to take someone on to cover a seasonal peak (in the retail or leisure industry for instance). A party planner might need an extra pair of hands for just a few months in the lead-up to a big event. Or a consultant may need to take on extra resources to deliver a big project on time.
The pros: predictability, extra resource only when you need it.
The cons: management time, full range of legal obligations.

Zero hours contract employees

A zero hours contract means you can effectively have people ‘on call’ to work when you need them. It’s important to recognise, however, that this is not a one-way street. You are not obliged to provide these employees with work – but, equally, they are not obliged to accept the work if it doesn’t suit them at the time. Your obligations as an employer will depend on the kind of contract you draw up. This kind of arrangement can work well in industries such as the media, for example, where work can be unpredictable and skilled staff are often needed for sustained periods at short notice.
The pros: flexibility, limited employer obligations, cost-effective.
The cons: lack of loyalty, unpredictable resources.

Temporary agency staff

Many fledgling businesses choose to dip their toe in the recruitment waters by using temporary staff supplied by an employment agency. This is a low-risk way of trying people out and getting a clear idea of the amount of time/resources you need – but it is of course a more expensive option than employing someone directly as you will be paying agency fees and commission. Typically, your contract is with the agency, which will pay the individual and deal with issues such as National Insurance Contributions (NICs). You do, however, still have certain legal responsibilities towards temporary staff – providing a safe working environment and appropriate rest breaks, for example. Bear in mind that legislation which came into force in October 2011 means that agency workers will be entitled to the same basic pay and benefits as permanent employees after 12 weeks in an assignment (Agency Workers Regulations).
The pros: flexible, available at short notice, limited employer obligations.
The cons: more expensive, quality of people may vary, lack of commitment/loyalty.

Freelancers, consultants and contractors

Many businesses decide to fill their resource needs by bringing in freelancers, consultants or contractors. A building company, for example, might call on a range of contractors with specific skills (plumbing, carpentry, etc.) to help them complete a new build or refurbishment. Publishing is an industry where freelance writers, editors and designers are often brought in to work on specific projects or to meet tight deadlines. Professional services firms or small consultancies often call in other consultants, whose skills are complementary to their own, to help meet client needs. This is not an employment relationship, but it is relevant in this context as it can help you decide what needs your business has. The freelancer or consultant is self-employed, selling their services to you, and your legal obligations are minimal.

If you go down the route of employing self-employed staff, however, it’s important to make sure that the individual concerned is legally defined as self-employed. It’s a complex area. If you are unsure, HMRC’s guide Employment Status: Employed or Self Employed? is available online to give further guidance. There’s also an online employment status indicator you can use to help you decide. The definition of “self-employed” relies heavily on what the people are doing for you, how they do it and where they do it. It’s important to recognise that it is your responsibility to establish the correct employment status of someone who works for you. Ignorance will not be regarded as an excuse.

It’s also recommended to have a contract with any self employed staff that sets out the main terms and conditions of your relationship.

There are special rules about employing contractors for the construction industry. Full details of these can be found on the HMRC website.

Taking on staff is a big decision for any start-up or small business so it’s important to ensure you assess both the reason behind why you need to take on staff and most importantly, how that can be effectively fulfilled.

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37 UK firms named in Europe’s top 50 financial tech companies

The FinTech 50 list highlights Europe’s most disruptive financial technology companies
Written by The Startups Team
Published on 17 May 2013

The UK has come out on top in the FinTech 50, a list of the 50 most disruptive companies in the financial technology sector.

Compiled by a panel of industry experts including head of ventures at Octopus Investments Alex Macpherson and Nick Ogden, founder of business banking start-up CashFlows, the list recognises both new and existing European firms that are “re-defining the future of finance” through innovative technologies.

FinTech 50, which consists of emerging technologies, such as mobile payments devices, currency exchanges and investment platforms, has named 37 UK-based companies.

Among the home-grown firms recognised in the list are crowdfunding platforms Crowdcube and Seedrs, which were named in the 2011 Startups 100 and the 2012 Startups Top 20 respectively.

They are joined by Startups Top 20 firm iwoca, a loan provider for sellers trading on eBay and Amazon, and international currency platform Transferwise, founded 2012 Young Guns Taavet Hinrikus and Kristo Käärmann.

UK mobile payments device firm mPowa also made the list, joined by Swedish competitor iZettle and Dublin-based SumUp.

Along with emerging businesses in the FinTech space, more established firms including payments solutions firm Aconite, mobile payment analytics company Bango and commodity software solutions firm Brady were also recognised for their continued innovation.

The full list was as follows:

1. Aconite Technology

HQ Location: London, UK

2. Ayondo

HQ Location: Frankfurt, Germany

3. Bango

HQ Location: Cambridge, UK

4. Basware

HQ Location: Espoo, Finland

5. Borro

HQ Location: London, UK

6. Brady

HQ Location: Cambridge, UK

7. Calastone

HQ Location: London, UK

8. Cashflows

HQ Location: Cambridge, UK

9. Celoxica

HQ Location: London, UK

10. Clear2Pay

HQ Location: Brussels, Belgium

11. Crowdcube

HQ Location: Exeter, UK

12. CurrencyFair

HQ Location: Dublin, Ireland

13. Dovetail Systems

HQ Location: London, UK

14. Duedil

HQ Location: London, UK

15. EToro

HQ Location: Limassol, Cyprus

16. FFastFill

HQ Location: London, UK

17. Fidessa

HQ Location: Woking, UK

18. Fidor Bank

HQ Location: Munich, Germany

19. Fixnetix

HQ Location: London, UK

20. Funding Circle

HQ Location: London, UK

21. Gocardless

HQ Location: London UK

22. Holvi

HQ Location: Helsinki, Finland

23. Interactive Investor

HQ Location: London, UK

24. IWOCA

HQ Location: London, UK

25. Ixaris Systems

HQ Location: London, UK

26. iZettle

HQ Location: Stockholm Sweden

27. Klarna

HQ Location: Stockholm, Sweden

28. Kurtosys

HQ Location: London, UK

29. MarketInvoice

HQ Location: London, UK

30. miiCard

HQ Location: Edinburgh, Scotland

31. Mi-Pay

HQ Location: Woking, UK

32. MPOWA

HQ Location: London, UK

33. Murex

HQ Location: Paris, France

34. Nutmeg

HQ Location: London, UK

35. Pensions First Analytics

HQ Location: London, UK

36. Perseus Telecom

HQ Location: Dublin, Ireland

37. Seedrs

HQ Location: London, UK

38. Semafone

HQ Location: Guildford, UK

39. SmartStream

HQ Location: London, UK

40. Sumup

HQ Location: Dublin, Ireland

41. TBricks

HQ Location: Stockholm, Sweden

42. The Currency Cloud

HQ Location: London, UK

43. Thunderhead.com

HQ Location: London, UK

44. TransferWise

HQ Location: London, UK

45. Vega-Chi

HQ Location: London, UK

46. Vizolution

HQ Location: Port Talbot, Wales

47. VocaLink

HQ Location: Rickmansworth, UK

48. Wonga

HQ Location: London, UK

49. WorldFirst

HQ Location: London, UK

50. Zopa

HQ Location: London, UK

The FinTech 50 announcement comes as Europe’s largest FinTech accelerator Level39 opens its doors in Canary Wharf.

Established by the Canary Wharf Group, the programme aims to provide growing financial technology firms with the space to create, test and market their products and services.


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Mac Tools: The franchise opportunity

Startups talks to Chris Magson, franchise recruitment manager for successful tool franchise Mac Tools. He shares their success so far and reveals plans to acquire 35 new franchisees in 2013
Written by The Startups Team
Published on 17 May 2013

Franchise: Mac Tools
Description: Mobile tools franchise
Started in: 1938
No. of franchises: 115 in the UK
Coverage: Across the UK with full coverage in Northern Ireland
Average cost per franchise: Franchise fee: £5,000, franchise package: £50,000 including fully-fitted van, starter stock and working capital, required liquid capital: £15,000
Website: www.mactools.co.uk
Twitter: @Mac_Tools_UK

With a global product line in excess of 42,000 items, 115 established franchises in the UK and growth plans to acquire 35 new franchisees in 2013, it’s clear to see that Mac Tools is a force to be reckoned with in the tools franchise space.

Founded in 1938 in the USA as the Mechanics Tool and Forge Company, the company was started by seven men who wanted to manufacture the finest tools in the world.

The business grew steadily, and after officially changing its name to Mac Tools in 1963, they became part of Stanley Black & Decker in 1980.

Originally structured as a network of distributors, the business model was transferred to the UK in 1990 and in 2009 Mac Tools turned to franchising to further accelerate growth. Although the business has evolved over the years, the company philosophy remains the same as it did in 1938 and today Mac Tools still uses the direct sales approach but with a mobile sales force of franchisees.

With a 2012 Startups award under their belt for Franchisee of the Year, Startups finds out what’s next for Mac Tools and what they’re looking for in their next, potential award-winning, franchisees.

Moving into franchising

So how did Mac Tools move in to franchising?

Mac Tools’ business model in the USA was originally structured as a network of distributors and we transferred this to the UK in 1990. In 2009, we started franchising in the UK to further expand the business and allow distributors to build their own successful business with the support of an established franchisor. The majority of our distributors were transferred to become franchisees.

The franchise opportunity

What makes Mac Tools different/unique?

Being a Mac Tools franchisee is a life-changing opportunity and commitment. It gives franchisees the freedom and potential to go as far and high as their abilities and hard work will take them. They are part of a great community within the network and benefit from Mac Tools’ experience and support.

Mac Tools is part of Stanley Black & Decker, an $11b global organisation employing over 30,000 people worldwide and owner of the world famous Stanley Black & Decker, Britool Expert, Facom and DeWalt brands.

Our franchisees distribute a range of over 18,000 professional tools to customers such as car dealerships, automotive repair shops, manufacturing units, and engineering companies.

Our franchisees, staff and customers are keen motorsport enthusiasts. Therefore, it comes as no surprise that Mac Tools, along with the Stanley Black & Decker group of brands, supports the trade by sponsoring the Moto GP, the British Touring Car Championship, British Superbikes, Bigfoot Monster Truck racing and the World Rally Championship.

How big is the market opportunity?

The market opportunity is fantastic in the UK with a potential market of over £150m.

How many franchisees does Mac Tools have today?

We currently have 115 franchisees in the UK and Northern Ireland.

How is the brand marketed?

Mac Tools provides professional marketing support including promotional flyers, product catalogues, information leaflets and online support to help franchisees drive sales. The exclusive sponsorship deals also provide a great basis for communication with customers, leading to increased sales through relationship building. Mac Tools franchisees also have the opportunity to attend biannual tool fairs and regional meetings where they can exchange best practice.

How do you divide the regions?

Our territories typically include around 180 automotive locations making it bigger than those of similar franchise opportunities.

The perfect franchisee

What does Mac Tools look for in potential franchisees?

We are looking for franchisees with great attitude and people skills who seek to succeed through their own hard work. We provide a high level of support and great products but, at the end of the day, it is the franchisee’s business and their work attitude that make the business a true success and that’s what we look for in our franchisees.

Previous sales and business experience give you a good head start and a basic knowledge of mechanic’s tools will help a lot. However, previous experience with tools is not essential as we have a great training programme and we already have a number of very successful franchisees who had no previous technical experience.

So do franchisees work from an office, or are they home-based? Is it part-time or full-time?

This is an exciting opportunity for you to be your own boss and work from home; to fulfil that dream of owning your own business.

Mac Tools provides you with a professionally-equipped van which will be stocked with a wide and world-class range of products for you to sell. We provide you with a database of all the known automotive relevant outlets within your territory and you will then be able to sell directly to customers by calling into their workshops on a regular and reliable basis.

How are franchisees vetted?

To ensure a successful future as a Mac Tools franchisee it is important to make sure that the Mac Tools franchise is the right opportunity for you. Therefore, we have a proven recruitment process that allows you to get to know the Mac Tools brand and business and also gives us the opportunity to get to know you. We help you identify whether there is a suitable territory available for you, answer any questions you might have, get you to take at least one van ride with a current franchisee and even help you set up your business plan and submit it to the bank. You will need available cash of £15,000 to be eligible for a Mac Tools franchise.

What do you offer franchisees that sign-up?

Mac Tools’ two-week comprehensive initial training provides franchisees with the product, sales and business and market-specific training they need to take to the road in their van.  Immediately after the two week training session the franchisee will receive a further two weeks of practical experience with a regional franchise manager in their territory to ensure they are fully prepared for their exciting new life ahead.  Franchisees receive a logbook to ensure they are meeting the objectives for their business. The logbook contains a number of attributes and skills that the franchisee has to demonstrate over six months for them to become fully qualified.

How much do franchisees pay and what are the ongoing franchise fees?

The total franchise package costs £50,000 excluding VAT (VAT is reclaimable). Unlike many other franchises, the bulk of this cost is starter stock that you will sell on at a profit. There is no charge from Mac Tools for ongoing royalties so you keep 100% of your profit.

Success and growth

How successful are some of the franchisees today?

Mac Tools franchisee John Booth has won this year’s Startups award in the Best Franchisee of the Year category. The Startups Awards are sponsored by NatWest and celebrate the success of businesses in the UK that have been trading for less than three years.

The competition for this year’s Franchisee of the Year award was fierce. John was nominated alongside successful ActionCOACH and Revive franchisees. In the end, John’s hard and consistent work over the last two years earned him the award.

Mac Tools also celebrated the success of their network at their toolfair in February. This year Matt Richmond took the tool crown as Mac Tools’ Franchisee of the Year 2012. Matt bought the franchise in 2010, after having a varied career from landscape gardening to MOT testing and has really enjoyed being master of his own destiny ever since. Matt sold £280k worth of tools over the last year.

Matt didn’t have to celebrate alone as Mac Tools rewarded a record number of franchisees across the network this year. Fifty-six of Mac Tools’ 115 UK franchisees met at least the Bronze award criteria and were awarded trophies for their outstanding performance.

How is the brand looking to grow?

Mac Tools is looking to continue their growth in 2013. In 2012, 26 franchisees joined the Mac Tools UK network and we are looking for an additional 35 franchisees in 2013.

Finally, is the company a British Franchise Association (BFA) member?

Mac Tools is a full member and was a finalist for the BFA’s Express Newspapers Brand Builder of the Year Award in 2012.

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Business ideas for 2013: The ‘internet of things’

Written by The Startups Team
Published on 17 May 2013

The ‘internet of things’, which connects everyday devices to the internet, making cars, homes and workplaces smarter, is much like Big Data in terms of why it makes this list and is, in many ways, related. The proliferation of smart technology has created innumerable business opportunities for those capable of tying it all together.

Thanks to the explosion of smartphones, there are now more connected devices in the world than there are people. By 2015 Cisco believes there will be more than 25 billion connected devices, a number that will double by 2020.

Cisco’s CEO John Chambers has said the internet of things “…will enhance business revenues by $14.4 trillion over the next decade”. Others expect it to be even bigger. From things like controlling temperature levels or security in the home via smartphone to cars talking to roads and recording the vehicle’s performance, the potential to take ‘dumb’ everyday objects and connect them is limitless.

Andy Hobsbawm, founder of software start-up EVRYTHNG, which enables device manufacturers to connect directly with customers and partners, says its potential impact cannot be underestimated. “A global network connecting all physical devices, creating a new interconnected web of information, people and physical things is a game-changer,” says the Digital Hall of Fame inductee.

“Consider the far-reaching impact of a new technology like railways in America,” adds Hobsbawm. “The opportunities created by transporting goods over thousands of miles by rail transformed modern business.

“Corporations grew much larger so they needed bigger buildings and new forms of organisations, so secretaries and middle management were invented, along with typewriters, skyscrapers and elevators. In other words, the domino effect of the railroads over the next few decades was extraordinary. Similarly, the impact of the ‘internet of things’ will probably be equally transformational.”

Kenneth De Spielgeleire, Vodafone director, concurs: “As companies and consumers become more mobile the wealth of data that describes consumer behaviour will magnify. For example, insurers have started piloting usage-based insurance premiums based on mobile data analytics showing the insured party’s whereabouts and driving behaviours.

“A number of private and public bodies are going as far as making large data sets publicly available to volunteers who are invited to analyse and spot opportunities for optimising work practices in different industries or work environments.” And this is precisely where the worlds of the ‘internet of things’ and Big Data collide.

Published Mar 2013

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Business ideas for 2013: Knowledge-based products and services

Written by The Startups Team
Published on 17 May 2013

Since the financial bubble burst successive Labour and coalition governments have talked about rebalancing the economy away from the City and towards knowledge-based manufacturing and services sectors.

With this renewed interest in production comes not just goodwill, but investment too. Businesses, especially those that spin out of universities, can benefit hugely from government money as long as they are focused on the right areas.

Late in January ministers announced a £600m investment in what it calls ‘eight great technologies’, including space technology, robotics, big data, and research into advanced materials such as grapheme. The money came hot on the heels of a £108m funding pot announced in the Autumn Statement for UK Life Sciences.

Announcing the money, science minister David Willets said: “[We are making] real decisions on backing key technologies on their journey from the lab to the marketplace. It is the missing third pillar to any successful high tech strategy.

“It is R&D and technology and engineering as distinct from pure science. It is our historic failure to back this which lies behind the familiar problems of the so-called ‘valley of death’ between scientific discoveries and commercial applications.”

As Startups’ sister brand Growing Business reported, the anticipated roll-out of government-backed Catapult Centres, run by the Technology Strategy Board, will happen this year. All this means innovation in engineering and technology will remain at the fore for years to come.

Published Mar 2013

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Business ideas for 2013: Outsourced security services

Have you got professional experience in the security sector? There’s more potential than ever for going it alone
Written by The Startups Team
Published on 17 May 2013

Think of ‘security’ and you tend to picture overweight men dressed in black, standing unsmilingly in front of doors and behind red ropes. But security is a monstrous, sprawling industry that covers just about everything that can come ‘under threat’ – from a briefcase to an airport.

Fuelled by the world’s increasingly complex risk profile as well as growing demand from government and big business for people who can protect their physical assets, the industry is experiencing a boom. In an indication of its stature, the market for outsourced security guard services is currently worth nearly £5bn in the UK alone.

“Even in times of economic crisis businesses realise the folly of scrimping on their security needs, so this is an increasingly attractive market for start-ups to enter,” says Dr. Richie Nanda, global chairman of Topsgrup.

But he warns: “The industry is by no means an easy start-up, you must be equipped with knowledge of the industry, the health and safety guidelines, how to conduct a proper threat and risk assessment, how to protect lone workers, and so on. It can be a tough cut-throat sector but the market potential is enormous.”

Published Mar 2013

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Government pledges £5.5m top-up for start-up loans scheme

Boost comes as Start-Up Loans Company exhausts £10m fund set aside for pilot with 2,000 young entrepreneurs backed
Written by The Startups Team
Published on 17 May 2013

The total sum available to young entrepreneurs through the Start-Up Loans scheme has been boosted to £117.5m following the government’s pledge of a further £5.5m.

The funding boost follows the scheme’s success at lending out its entire £10m pilot fund to entrepreneurs aged 18 to 30.

The additional support will be available to young entrepreneurs until the end of the month, before the Start-Up Loans Company launches the £42.5m first official round later this year.

Launched in September 2012 by the Start-Up Loans Company, chaired by former BBC Dragon James Caan, the Start-Up Loans Scheme is designed to provide young entrepreneurs with business support and funding until 2015.

Providing around £4,500 for each loan, the scheme has supported 2,000 young business owners so far, half of whom received loans in the last month.

Prime minister David Cameron commented: “Start-Up loans are now helping thousands of aspiring young entrepreneurs get the finance and support to strike out on their own and launch their own business.

“The success of this scheme shows that young people have got the ideas, the ambition and sheer commitment to get ahead – and it is by backing them, and backing their aspirations that we will be able to compete and thrive in the global race.”

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Business ideas for 2013: Digital healthcare

The Department of Health would love to cut costs and technology will provide the answers. Have you got a big idea?
Written by The Startups Team
Published on 17 May 2013

When it comes to industry sectors, it doesn’t get much bigger than health. From big pharma to the technology companies underpinning networks at hospitals and clinics, the sector is rife with big-money opportunities.

The biggest currently seems to be digital healthcare, which describes the development of systems, analytical technologies and smart devices that have the potential to save lives by equipping doctors with quicker and more accurate information about patients.

It could mean saving the life of someone who is sick or anticipating illness in someone who is a high-risk case. Technologies in this sub-sector also help medical professionals monitor and manage illnesses, as well as learn from patterns that could save lives in future.

In January, around 300 investors, NHS executives, healthcare professionals and digital healthcare start-ups gathered at the innovation day for start-up accelerator Healthbox. The American initiative, started in a country where spending on healthcare is a staggering $2.6 trillion or 17% of GDP, has honed in on Europe for expansion.

The existence of the NHS and fact Britain spends 7% of GDP on healthcare, makes the discovery of efficient technology-based solutions a major priority.

For the best innovations, there’s a global opportunity, which was why 20 UK digital healthcare start-ups were flown out to Boston in the US on a Web Mission late last year.

Vodafone director Kenneth De Spielgeleire, points to a collaboration between Boston-based digital healthcare start-up Healthrageous and German pharmaceutical company Boehringer Ingelheim for further evidence.

With enormous sub-sets of data now publicly available he says the companies have combined forces to find a solution to diagnose, analyse and prescribe treatment to manage type II diabetes, which affects more than 300 million people globally.

“We are seeing a revolution in digital healthcare,” says Andrew Chitty at Year Zero, whose company is rolling out digital health records to 1.6 million patients in the NHS. “It will transform the relationships between providers and their patients.”

Published Mar 2013

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Laptop comparison start-up raises £60,000 on crowdfunding site

Second crowdfunding investment comes as Swogo earns place in European accelerator programme
Written by The Startups Team
Published on 17 May 2013

Early-stage laptop comparison site Swogo has successfully raised £60,000 through crowdfunding platform Seedrs.

Set to support the team as they further develop their free service, which aims to help consumers to make purchasing decisions, the latest funding follows a £17,500 investment secured through Seedrs last year.

This week Swogo was also selected as one of nine companies to make it through to the European accelerator programme Startupbootcamp, following a two day selection process.

The three to six month programme in Amsterdam will provide the founders with a …15,000 investment, along with free office space and business mentoring and the opportunity to pitch to investors.

Co-founder Lucy Foster commented on their success: “We are very glad to have been chosen.

“In just two days we feel as if we’ve gained so much business insight, and made some incredible connections.

“We want to use this program in order to really accelerate our business, and see Swogo gain traction quickly and cost-effectively.”

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iZettle launches chip and pin mobile credit card payments device

New product allows firm to add Visa to the list of credit cards accepted directly through the device
Written by The Startups Team
Published on 17 May 2013

iZettle has launched a chip and pin device to enable business owners to accept credit and debit card payments through their smart phones on the go.

Connecting wirelessly to smart phones and tablets via Bluetooth, the new device will complement the company’s existing chip and sign product, which was launched in November last year.

The launch of the new product, available for £49, will mean that retailers and service providers can take Visa payments directly through the mobile payment device. Visa Europe’s policy decision announced in August 2012 meant that iZettle’s chip and sign device could not accept Visa payments directly and instead customers had to carry out the transaction on a secure site via their own smart phone or tablet.

As with the previous device, the chip and pin product from iZettle will also enable merchants to accept payments on the go from MasterCard, American Express and Diners Club cards, at a cost of 2.75% per transaction.

iZettle is among a number of firms to have manufactured and released a mobile payments device in the past year. The news comes as chip and sign payment device producer SumUp announces a deal with American Express, which will see the firm enabling merchants to accept payments from customers with American Express cards.

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Women in franchising awards open for applications

Encouraging Women into Franchising launches its third annual awards
Written by The Startups Team
Published on 17 May 2013

The Encouraging Women into Franchising (EIWF) Awards 2013 have officially opened for entries. Looking for men and women who have made an outstanding contribution to the services of women in franchising, applications will be accepted until March 14 at 5pm. Delivered by EWIF, an organisation designed to offer free services to franchises with an under representation of women in their network and offer advice to women looking to franchise their business or become franchisees, the EWIF Awards first launched in 2011. Prizes will be awarded for New Woman Franchisor of the Year, New Woman Franchisee of the Year, Woman Franchisor Employee of the Year, Woman Service Provider of the Year, Woman Franchisee of the Year and Woman Franchisor of the Year, at an awards ceremony in London on March 16. An additional prize will be presented to an individual who has made an outstanding contribution to women in franchising. The NatWest-sponsored award, for which entrants must be nominated, last year went to Rosemary Conley of Rosemary Conley Diet and Fitness.

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Theo Paphitis quits BBC’s Dragons’ Den to concentrate on new retail ventures

Serial entrepreneur announces his departure from the popular TV series after nine years in the Den
Written by The Startups Team
Published on 17 May 2013

Theo Paphitis has announced his exit from the BBC TV series Dragons’ Den after sitting on the panel of venture capitalists for nine years.

The entrepreneur, who sold Lingerie chain La Senza for £100m in 2006, has decided to leave the Den to continue to build his new lingerie firm Boux Avenue both in the UK and internationally. The company reported an £8m loss from its first full year of operation as Paphitis expanded the chain to 17 stores, including the opening of franchises in Malta, Gibraltar, and Iceland.

Having recently acquired household items retail store Robert Dyas, Paphitis also plans to spend time developing the business, as well as concentrating on £124m-turnover stationary chain Ryman, which recorded a profit of £7m before tax in 2011-12.

Paphitis, who has an estimated worth of £210m, joined Dragons’ Den in the show’s second series in 2005. In 2012, he made the largest ever investment from a single Dragon, pledging £250,000 to second hand media hardware buying site Zapper.

The news of Paphitis’ exit follows the departure of Hilary Devey from the Den and the BBC is yet to announce the panel’s two replacements.

Paphitis wished his replacement well in a statement on his departure from the show:  “The time felt right to give up my seat, stop breathing fire and allow someone else to enjoy the wonderful experience of being a Dragon on the BBC hit TV show, Dragons’ Den.”

He added: “This has not been an easy decision or one that I have taken lightly.”

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