Venturelab boost for start-up

A COMPANY that helps schools generate revenue whilst providing pupils with the chance to work on a real-live business is on its way to profitability, thanks to a six figure sum from a Yorkshire-based investment programme.

Localbiz is an investee company of Leeds-based Venturelab, recently launched by businessman Justin Whitston.

The Localbiz idea was developed in 2003 by Ian Linnegan and Alan Drew with the aim of providing a vehicle for schools to develop community websites with their pupils, and providing pupils with the opportunity to learn enterprise skills whilst working on a live project.

The pair were looking for finance to grow the business when they met Whitston through the Yorkshire Association of Business Angels.

Mr Whitston said: “I could see huge potential in Localbiz but it was clear that its business plan and model needed some work in order for it to realise that potential.

“We’ve spent the last year rewriting the business plan and developing proprietary systems to underpin its growth.”

He added: “We provide the package to schools for free – and it fits all the relevant enterprise education criteria – and market the inventory and sponsorship of the platform to local businesses on their behalf. The advertising revenue is then shared with the schools.

“This provides the schools and the pupils with the very first real enterprise education platform as the return for schools is between £2,000 and £4,000 each year.”

Localbiz is aiming to partner with 60 schools in its first year and has secured 20 already since it began selling its new product in April.

Venturelab is a new concept in start-up investment, mentorship and business support which launched this month.

The business is privately funded and offers a six month seed fund and mentorship programme designed by Whitston himself.

“I wanted to establish a much more dynamic way of investing in companies in the region and create an exciting brand where entrepreneurs can thrive,” said Whitston.