A new retail innovation hub has launched in central London aiming to pair exciting start-up firms and entrepreneurs with larger companies looking to shake up their operations in the fields of data analytics, supply chain, advertising technology and retail innovation.
Known as TrueStart, the Victoria-based hub aims to provide a base for up to 20 start-ups at a time and hopes that each will be able to receive a minimum of £25,000 from keen investors over a six month period.
TrueStart co-founder, Richard Mergler, believes that the initial support provided by his firm will allow entrepreneurs to flourish in an increasingly competitive digital retail sector.
He says; “We are committed to finding and supporting innovative businesses and ideas that have genuine potential to shape the future of the retail and consumer industries.”
The hub’s first tenant is start-up firm The Unseen, founded by Lauren Bowker. Her company specialises in the integration of electronic and chemical elements into materials, allowing the wearer to change the colour of garments in order to customise their outfit based on personal preference.
In return for TrueStart showcasing the opportunities afforded by the start-ups in the hub, it will receive a 10 per cent stake in each business. While this may seem like a gamble for entrepreneurs, the continued involvement of TrueStart in the businesses will allow founders access to further investment from existing large businesses, thus increasing the chance of survival and even helping to lift annual profits.
Speaking at the launch of the hub, ex-board director for Siri and Spotify, Frank Meehan detailed his own venture into the start-up hub field. Although he co-founded a start-up hub in Asia, he believes that the UK is a better base for start-up hubs specialising in modernisation of the retail industry.
He said; “I don’t think we are going to get another Facebook out of the UK, but what we do get is very strong innovation in retail and fin-tech, which are not that strong in Asia.
“In Asia it’s very much more about e-commerce businesses, gaming, which is very big, so those are the kinds of differences at the moment.”
With banks beginning to lend once more to small companies and demand on the rise both domestically and overseas, entrepreneurs are being given the kinds of opportunities not seen since before the financial crisis struck in 2008. However, with the number of start-ups in the UK reaching record levels, firms such as TrueStart may be key in helping new businesses stand out from the crowd.
Do you think hubs of this kind should be launched in each major city of the UK in order to fuel growth in local economies?
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