Fintech accelerator launched in Leeds
A NEW fintech accelerator (a hub for financial technology businesses) is being launched in Leeds.
The Dotforge fintech accelerator, which aims to be up and running from early 2015 and is the first fintech accelerator outside London, will seek to enable greater collaboration between entrepreneurs and businesses through programmes of funding and intensive business support.
Dotforge will to deliver three programmes of investment and support over the next three years and will be actively seeking up to 10 businesses to receive £50,000 of first-round investment, with the potential for up to five to receive a further £50,000 to support their second round of investment raising.
It’s expected that on top of the initial funding, the companies will attract a further £1m of funding from other investors in the first 18 months of the programme. The accelerator programme is expected to create 20 plus jobs over the first 12 months, more than tripling to 60 in three years, if the start-up businesses receiving the funding are successful.
Lee Strafford, co-founder of Dotforge, said: “Our agenda is to build six accelerators across the north and to build and connect the technology and investment community. We want to connect the supply chain of talent across the whole of the north to add value.
“The two logical verticals for Leeds are absolutely fintech and medtech or digital health. The reasons we’re choosing Leeds is because there are a number of head offices here, but just as importantly, it has the back offices as well. So the access to industry and the access to the people who are trying to solve some of the industry problems are here. What we are going to be looking for are individuals and teams to solve those problems.
“We are also seeking to build relationships with banks and other financial institutions to partner with us to deliver that investment to the accelerators alongside an angel syndicate to invest in the early stage businesses.”
Dr Chris Sier, co-lead on FiNexus and former director of the Financial Services Knowledge Transfer Network, added: “The Government wants the regions to benefit from the same rapid growth that London has been subjected to over the last three or four years, particularly in fintech.
“And there is a significant pull from Leeds. One has to ask the question to the business start-ups in London and ask do they have to be there? And the answer is, they don’t.
“People are waking up to the opportunities that lie outside the capital and the advantages that come with that location.”
The emerging fintech sector has steadily been attracting investment and, together, the UK and Ireland have seen the volume of fintech deals triple since 2011 – a growth three times the global average and more than five times that of Silicon Valley.
Peter Cunnane, economic development officer at the City of London Corporation, said: “The fintech industry needs the right eco-system to thrive: a centre for financial services, leading academia and strong civic leadership. With these three components, there’s no reason why the Leeds City Region cannot become a global hub for fintech.
“The region can provide access to market through the high number of banks and building societies based in the area and, with growing technology and digital sectors, as well as a wealth of understanding and knowledge around the financial market, the Leeds region is a natural choice for fintech.”
