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Tech leaders say there are 'too many accelerators' in the UK - Business Insider

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Industry leaders say there are too many accelerators operating in the UK's 'overcrowded' tech scene

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Matt Clifford, CEO of Entrepreneur First, hit out at what he called Britain's "broken model" of startup investment schemes. The accelerators vary hugely in terms of the resources on offer, investing anything between £15,000 and £100,000 in schemes lasting from three to 12 months, usually in exchange for a percentage of equity. More than 150 accelerators currently operate in the UK — up tenfold since 2009 — offering a combination of contacts, mentorship and financial backing to entrepreneurs building up their businesses from scratch.

According to the latest research by Nesta, an innovation foundation, around half of the UK's accelerators receive funding from larger corporations. Nike, EDF Energy and British Airways are among the big businesses that have launched their own schemes in the name of innovation. Scott Campbell, director at Deloitte Ventures, suggested too many investors were engaging in "innovation theatre", offering the illusion of success with few tangible results.

 

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