A presentation on how digital clusters all over the UK are shaping a Tech Nation. Plus case studies of how UK-based tech companies are creatively raising money at the early stage of their development.

1. The
Network
Effect:
The
Importance
of
Clusters
for
Startups
and
Angels
in
the
UK
Keynote:
UK
Business
Angels
Association
Gerard
Grech
CEO
Tech
City
UK
@techcityuk
|
@gerardgrech
July
2015!

2. 2!Tech
City
UK
Who
are
we?
Launched
by
the
UK
Prime
Minister,
David
Cameron,
in
2010
to
support
digital
entrepreneurship
in
London.
Our
aim
is
to
help
create
the
optimum
set
of
conditions
for
entrepreneurs
in
London
&
cities
in
UK
by:
1. Delivering
programmes
that
fill
market
gaps
across
the
whole
lifecycle
of
digital
businesses
(e.g.
Digital
Business
Academy)
2. Providing
an
agile
and
responsive
feedback
loop
to
government
to
help
shape
the
right
policies
(e.g.
Visas)
3. Championing
and
connecting
the
digital
sector
in
the
UK
and
internationally
(e.g.
Tech
Nation)

3. Tech
City
UK
Presentation
Title
Who
are
we?
Launched
by
the
UK
Prime
Minister,
David
Cameron,
in
2010
to
support
digital
entrepreneurship
in
London.
Our
aim
is
to
help
create
the
optimum
set
of
conditions
for
entrepreneurs
in
London
&
cities
in
UK
by:
1. Delivering
programmes
that
fill
market
gaps
across
the
whole
lifecycle
of
digital
businesses
(e.g.
Digital
Business
Academy)
2. Providing
an
agile
and
responsive
feedback
loop
to
government
to
help
shape
the
right
policies
(e.g.
Visas)
3. Championing
and
connecting
the
digital
sector
in
the
UK
and
internationally
(e.g.
Tech
Nation)
IOT
LaunchPad

4. 21
clusters
identified
and
studied
!
! Company
respondents
nationwide
sectors
profiled
1.46m
employed
in
tech
across
the
UK
50%
of
digital
companies
founded
since
‘08
!
!
Big
Data
Analysis:
47K
>200K
employed
in
tech
across
Inner
London
EG.
London’s
notable
strengths:
FinTech,
Data
Management
&
Analysis,
Marketplace,
E-­‐commerce,
Software
Development,
Creative
industries
(Eg.
music,
fashion)
2500+
Core
Research
Partners:
A
growing
Tech
Nation:
1.46M
in
digital
employment

5. LEAD SOURCE:"
Feb 2015!

6. LEAD SOURCE:"
Feb 2015!

7. 7!
LEAD SOURCE:"
Feb 2015!

8. Tech
City
UK
Presentation
Title
A
ranking
of
cities,
where
digital
companies
felt
part
of
a
cluster
(Cluster
Association)
SOURCE:"
Feb 2015, ONS categorization !
0.00%!
10.00%!
20.00%!
30.00%!
40.00%!
50.00%!
60.00%!
70.00%!
80.00%!
90.00%!
100.00%!
CLUSTER ASSOCIATION!

9. 9!
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Digital
Employment
as
a
%
of
Total
Employment
in
the
area
LEAD SOURCES:"
November 2014, ONS !

10. 0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0
500
1000
1500
2000
2500
3000
18
17
15
13
12
10!
1.
Bristol
/
Bath
3.
Reading
4.
Leeds
5
6
7,8
9
10
11
14
16
19
2.
Greater
Manchester
1.
Bristol
/
Bath
2.
Greater
Manchester
3.
Reading
4.
Leeds
5.
South
Wales
6.
Northumberland,
Tyne
&
Wear
7.
Cambridgeshire
8.
Oxfordshire
9.
South
Yorkshire
10.
Birmingham
11.
Glasgow
12.
Edinburgh
13.
Norfolk
14.
East
Yorkshire
15.
Worcestershire
16.
Liverpool
17.
Brighton
&
Hove
18.
Bournemouth
&
Poole
19.Dundee
Digital
Employment
v
Number
of
digital
companies
(exc.
London)
(larger
established
firms
vs
startups)
No.
of
Companies
Digital
Employment
SOURCES:"
November 2014!

11.
4
quick
case
studies
to
demonstrate
evolving
landscape

12. Tech
City
UK
Presentation
Title
Fashion
Tech
and
eCommerce:
Grabble
recently
raised
£1.2M
raised
from
angels
“We
believe
that
angel
investment
adds
a
huge
amount
of
value
as
you
can
strategically
gain
insight,
contacts,
and
regular
feedback
from
people
who
have
a
wealth
of
experience”:
Daniel
Murray,
Co-­‐
Founder,
Grabble

13. Tech
City
UK
Presentation
Title
Prop
Tech:
Hubble
connects
businesses
with
office
space,
and
had
the
challenge
of
finding
angels
“Finding
the
angels
also
wasn't
all
that
easy
as
we
wanted
people
with
particular
expertise
to
offer
the
business
-­‐
not
just
money”
Tom
Watson,
Co-­‐Founder,
Hubble

14. Tech
City
UK
Presentation
Title
GreenTech:
Pavegen
are
raising
money
via
crowdsourcing
(but
also
to
drive
brand)
“We
decided
to
seek
crowdfunding
after
our
angel
rounds
due
to
the
brand
uplift
provided
by
the
crowdfunding’s
marketing
campaigns
and
OOH
advertising”
Archie
Wilkinson,
Head
of
Marketing,
Pavegen

15. Tech
City
UK
Presentation
Title
FinTech:
PiP
Payments
relocated
their
business
from
Ireland
to
the
UK
&
are
raising
£2M
“It’s
the
time
required
our
end
to
get
a
investment
across
the
line
-­‐
we’ve
found
with
PiP
(and
on
previous
projects)
the
time
required
to
get
investment
really
distracts
from
running
the
business
itself”
Ollie
Walsh,
Founder,
PiP
Payments

16. Tech
City
UK
Presentation
Title
Many
local
clusters
networks
are
in
place
to
ease
networking
opportunities

17. Tech
City
UK
Presentation
Title
While
an
expansive
range
of
investment
vehicles
and
options
available,
which
didn’t
exist
5
yrs
ago

18. Tech
City
UK
Presentation
Title
1
8!Pls
don’t
hesistate
to
give
your
feedback
to
UKBAA
and
govt
about
what
can
be
improved:
e.g.
SEIS
• Since
SEIS
launch
in
’12,
over
2,700
companies
raised
over
£240m
in
investment
(to
date:
May
2015)
• Average
investment
per
company
£88,000
Source:
Gov.uk
–
EIS
and
SEIS
Review
How
can
we
improve
it
further?

19. 19!
Thank
you
so
much
for
listening!
1. Follow
us
2. Visit
our
website
www.techcityuk.com
3.
Download
our
reports
4
Join
one
of
our
programmes
Gerard
Grech
CEO
linkedin.com/gerardgrech
@gerardgrech
facebook.com/ggrech
gerardgrech