A business incubator for young entrepreneurs

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1 A business incubator for young entrepreneurs

2 What we have achieved so far is a business incubator for young entrepreneurs from all walks of life. At least 30% of all members come from less advantaged backgrounds. It is a unique partnership between LaunchPad Labs and Catch22. Catch22 is a social business with a 200-year-old social mission working with vulnerable young people, families and offenders to turn their lives around. LaunchPad Labs is a registered charity founded in 2014 by entrepreneurs Eddie Holmes and David Hardman to provide workspace, mentoring and finance to early stage entrepreneurs. is a joint venture that brings together our shared commitment to improving outcomes for less advantaged and underrepresented entrepreneurs of the future. Catch22 has always been committed to taking an enterprising approach, our formation of The Philanthropic Society in 1788 aimed to unite the spirit of charity with the principles of trade. It is in this spirit that we embark on this innovative partnership to create a network of business incubators for young entrepreneurs. The first incubator Results from the first five months of our pilot, in Corsham Street, Shoreditch: Number of paying members Members since inception 80+ Scholar memberships (free for less advantaged entrepreneurs) Recurring monthly revenue 8,900 Businesses funded Expert mentoring hours delivered 150 Volunteers trained Expert volunteer mentors trained (30 full time, 16 part time) 8 2 (total funding + 3m) 8 (4 into subsequent employment) Investment to date 80,000 Meet the team Chris Wright, trustee Chris is the CEO of Catch22 and has a long established career working in the public and voluntary sectors helping people to turn their lives around. Chris has been the driving force behind Catch22 s transition to becoming a social business that applies business principles to our social mission. Harry Hill, trustee Harry is the former Countrywide boss and Rightmove founder, his experience in business is a phenomenal asset for. He has grown organisations across sectors to incredible heights, and has set his sights on expanding us to a level never before reached by a social enterprise. Eddie Holmes, CEO and co-founder Eddie has been on both sides of the table, as an entrepreneur around the UK for over 10 years and more recently also as an investment director for Spire Ventures. His years spent mentoring for the Prince s Trust catalysed his push to help ease entry into entrepreneurship. + Sarah Sinnott, / Catch22 Head of Partnerships Sarah has worked in business development in corporate and social businesses and now heads up Catch22 s partnerships strategy. Within she is ensuring we create a cross-sector partnership that delivers both social and sustainable impact. David Hardman, General Manager and co-founder David has worked with various non-governmental organisations and charities throughout South-East Asia and in Melbourne, where he s originally from. His functional knowledge of how the best social enterprises work is integral. Our ambition is a social business and registered charity run on startup principles. With this team and the traction from Corsham Street, we have a vision to be the primary organisation in the UK for early stage and less advantaged entrepreneurs seeking business support, which we will deliver through a network of at least 22 sustainable incubators offering workspace, mentoring and access to finance.

3 Corsham Street and beyond Vision s first site, Corsham Street, opened in May 2014 and since then we have been testing and refining the products and services on offer. After five months we are now sustainable and confident we have a pilot model that is replicable across the UK. Our vision is a network of physical business incubators across the country. We exist to inspire as many young entrepreneurs as possible by creating these innovative and supportive spaces. We will include entrepreneurs from all walks of life aiming to achieve at least a 70/30 split between members who pay a lower-than-market-rate for access to the facility and members who are given access for free (scholars). Physical desk space Meeting room facilities Mail handling and business addresses Financial advice and sign-posting Pitch evenings Workshops and hackathons Social objectives for each site we open: At least 30% occupancy to less advantaged young entrepreneurs (scholars) 80% of scholarship entrepreneurs are still in enterprise or are in employment within six months of occupancy At least 20 young people every year are involved in meaningful work experience, placements or apprenticeships To provide an inclusive local community space for use by charities, social enterprises and social businesses High speed internet Printing Specialist mentoring Networking events Keynote speakers The social mission of is embedded into the model through volunteers, mentors and members who give their time and expertise freely to help grow the impact of the incubator community. This ensures our ability to offer at least 30% of all memberships as free for less advantaged and underrepresented entrepreneurs. Business objectives for each site that we open: INPUTS OUTCOMES Volunteers Increased employability and confidence of young people Trained mentors Pro bono expertise Membership fees Stronger local communities Bridging social capital through networks To achieve 80% occupancy within 12 months of trading To break even within 12 months To help at least one business achieve external investment within 18 months Work experience Job creation Community events Peer support Economic growth in low socioeconomic groups and SMEs Enterprise workshops and tasters for at-risk groups Engagement with at-risk young people

4 Rationale Scale plans plugs a gap in the market for on-demand business support to young entrepreneurs delivered in a physical workspace. Our Corsham Street incubator gives young entrepreneurs a place and community, of mentors and peers, to ensure they can quickly make the day-to-day decisions every new startup needs to make. Hurdles faced by young entrepreneurs Based on combined experience of working with young people, mentoring early stage entrepreneurs and what we ve tested at Corsham Street, solves three key issues. Phase I: COMPLETE Corsham Street opened in May 2014, bootstrapped with personal contributions and volunteer support. Achieved sustainability in November Problem 1. ISOLATION Working from home, cafes or libraries is lonely and isolating. There is no physical location where young entrepreneurs can spend time with peers, share experiences, and lean on each other for support. 2. LACK OF HANDS ON ADVICE AND GUIDANCE Fear of failure is cited as the second most important reason for young people choosing not to set up their own businesses. Mentoring is typically delivered on an irregular, distanced basis. 3. INABILITY TO ACCESS FINANCE Early stage finance ( 5,000-25,000) is available, but there is no appetite for banks, private or social investors to provide capital to early stage startups in amounts ranging from 25,000 to 150,000. Banks have no appetite and private investors are rarely interested in such small ticket sizes. Phase II: In 2015 we will replicate our pilot site into four new locations with a small head office support service. Shoreditch (existing pilot) central team [Bristol] [Liverpool] [Sheffield] [your hometown?] WORKSPACE MENTORING Solution FINANCE Current funding ask: We have secured 100,000 matched funding for Phase II and are now seeking 500,000 from one or more Founding Partners to put our sustainability plans into action (see insert). Provision of free and affordable workspace in prime business locations Friendly community created through mentor and peer connections On and off site mentoring delivered by entrepreneurs and suitable professionals Use of bespoke mentor training based on Lean Startup principles Signposting to - and delivery of - seed finance Creation of an investment fund with exclusive access for members Phase III: PLANS Scale to at least 20 sites nationally. Set up an investment fund of approximately 4M ( 2M private equity already committed).

5 If you want to bring about a fundamental change in people s belief and behaviour, a change that would persist and serve as an example to others, you need to create a community around them where those new beliefs can be practised and expressed and nurtured. Malcolm Gladwell, The Tipping Point Get involved If you are or know an early stage entrepreneur that would like to take a seat at now or in the future, please register your interest via If you would like any further information or are interested in becoming a Founding Partner, please contact: Sarah Sinnott, Catch22, Head of Partnerships or

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