Start-ups are always getting media attention, but it’s scale-ups that could represent the biggest opportunity. Whilst start-ups are an obvious target for investors – in 2015 75% of all VC money went into tech start-ups – if scale-ups received a 1% boost, they’d generate a further 238,000 jobs and add £38bn to our economy.
Writing for realbusiness last week, David Galsworthy, CEO of Techspace, explained: “For start-ups to be able to provide employment, raise more capital, contribute to the economy and impact a wider market, they need to scale”.
But scaling a business is not easy.
“Each time your business doubles everything seems to break” says Erik Fairbain, founder of electric car charging company POD Point. “So every time your company doubles in size, you end up redesigning every process you have”.
David Galsworthy has a vision to create an environment in which scale-ups can grow. Whilst he’s likened this concept to an accelerator, he wants it to be more flexible – to be able to take a more subtle, agile approach.
Currently there’s a gap where a suitable scale-up support-system should be. Coverage is beginning to grow, though, so it will be interesting to see what infrastructure emerges.