Setting the Scene
Jof Walters of Million Labs and Greater Things introduced himself and was the host for today’s panel. Million Labs support innovative ideas and turn them into successful startups through the power of no-code solutions, lean methodology and AI. Greater Things is a UK investor in idea stage tech founders.
He thanked the packed room for attending and spoke about how rich the West Midlands is in support for start-ups. He began by asking Keira to set the landscape for accessible business support.
MEIF1
Keira introduced herself and talked about how the Midlands Engine Investment Fund is a collaboration between the British Business Bank and ten Local Enterprise Partnerships across the West and East Midlands. The Midlands Investment Engine began in 2017 and she spoke about how, with MEIF1 support, the eco-system has changed since then. She went on to say that:
• The number of businesses in the region has increased from 250 million to 300 million
• It has created more high value jobs
• In debt schemes were successful during Covid
• An increased focus on ESG and diversity
Dudley Council
Laura from Dudley Council spoke about how the Dudley eco-system has changed and spoke about the transition from Business Link to the Growth Hub.
In April, 2023, Business Growth West Midlands was launched which has provided a consistent and local support for businesses. Offers include:
- • Access to funding
- • Support for Net Zero
- • Pre start-up and start-up support through enterprise culture
- • Investment Readiness
- • Supply Chain Transition Programme
- • High Growth Accelerator
Data led research is key to this innovation. From 2020 – 2021, UKRI Innovation Spend on average was £197.00. In Solihull, this was £700 and in Dudley, it was only £4.00. This brought in gasps from the audience and Jof questioned why this had happened.
Laura said they began by looking at what innovation meant and why money isn’t flowing back into Dudley and the region soon realised that businesses didn’t see their work as being innovative. This led to 120 businesses and support providers coming together to talk about innovation and the concept of “Pitch your Problem to your Peers” was created. Businesses began supporting and inspiring other businesses.
Zephlinear
Dr Sonia Reynolds was asked about their funding and how this had supported them. She began by saying they had received Innovate UK support and had become a part of the STEAMhouse support process through using their technical hub.
Dr Sonia has created a ground-breaking new textile using an innovative technique known as Fibre on Yarn Surface Entanglement (or FOYSE). This is a lighter, stronger and more sustainable material.
She was asked how the University had supported her in creating the IP.
Dr Sonia explained that University support has helped her identify new markets and IP boarding. The cost to develop the IP was a total of £70k and it hadn’t been quite a difficult process to navigate round.
D-RisQ
Nick responded that regulated industries and collaborative investment from two former business colleagues enabled him to set up the new business, in turn, offering his colleagues (soon to be co-founders) better prospects.
Their first contract was with the Defense Advanced Research Projects Agency (DARPA) in America. He applied for Innovate UK funding which wasn’t initially accepted so he applied for the equivalent elsewhere. The aim was to find fully funded projects that can use their technology / software with 70% external funding and 30% of their own investments.
Covid then hit! His business nearly closed and only had 3 days of trading left. He was able to find seed money and eventually turn things around.
Some key points to note from the panellists are:
• pre-revenue, the support is lacking and there is no room for discussion. It’s an area that needs to change and increase the risk.
• Access to finance is a problem
• There is more support for start-ups but a gap / difficulties in high growth.
• Midlands Engine Hub shows the support out there.
• There are free OU courses for start-ups
Questions from the Audience
1. STEAMhouse is a very valuable resource. Should we create more of these spaces rather than give out grants?
There was a resounding yes from panel members. Nick went on to say that on a trip to SRI in Silicon Valley, he was told that businesses there can focus on innovation due to having:
• access to University resources for 2 years and
• access to lawyers for free
The University, in return, gets 5% of the business equity. He went on to say that more support is needed in the UK especially for autonomous systems.
He gave an example of a newly established wind tunnel at Plymouth University which could be used for business research purposes but, this won’t be possible as it will be used for teaching.
2. Will HS2 reverse brain drain?
The person asking the question stated that he had moved away and come back to the region.
There is a growing trend that of those leaving the region, a higher percentage are returning and coming back to the West Midlands.
The panel highlighted that HS2 will be better for inward investment as it brings the West Midlands closer to London.
It was also highlighted that the West Midlands is an attractive place to live for businesses and general lifestyle.
Jof also added “space” into the debate stating that there has been a post Covid shift to homeworking.
3. Birmingham has an image problem. The lady who asked the question is an opera singer and it doesn’t help her career to say she’s from Birmingham so she often states she’s from London. People question if it’s still the 2nd biggest city (or is it Manchester?) There’s a misconception that the Council is bankrupt.
Birmingham has changed demographically and it is highly ethnically diverse. It is in fact, one of the first “super-diverse” cities in the UK although this is not identified culturally.
The general consensus from the panel is that there is a need to shout more and promote the benefits of a great city.
4. I don’t know where to access pre-seed funding. Where do I start?
The initial advice is to go to Business Growth West Midlands as they will help you navigate where you need to go.
After a brief discussion, it was agreed that there is a need to design different communication methods so that there is a clear pathway and accessibility for everyone.
Pam summarised what a great session this had been and that the future landscape for business and innovation support in the region looked rich and vibrant. The panel and audience were thanked for their participation.
Venturefest West Midlands has been running for 10 years now and its continued aim is to connect everyone and showcase business support and innovation. She went on to say the West Midlands is proud to have such a wide range of great universities, great people, cultural diversity and diverse innovation.
Nikki Ayton, WMHTC
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