Designed to give startups a short, sharp shock that drives them forward to become successful businesses, seed accelerator schemes are highly popular in the USA.
The Y Combinator and Techstars model of giving startups intense coaching on their business model, technology and future plans over a period of weeks is growing in popularity in Europe. Seedcamp is a popular example with its one-week course. Another is the Difference Engine, a thirteen-week programme based in Middlesborough which has just seen its first wave of startups graduate.
Difference Engine founder Jon Bradford is currently on a European ‘tour’ to show off the startups who took part and to drum up interest in wave two, which is currently open to applications. Last week he visited Manchester’s Techcelerate event along with two of the companies who made it through the programme successfully and had a chat with him to find out how he felt it had gone.
More “Bootcamp” than “Seedcamp”
Jon Bradford doesn’t cut the stereotypical figure of the accountant and sometime venture capitalist that he is. Relaxed, chatty and wearing a t-shirt he has more in common with the startups he mentors than the suited-up moneymen he might normally be associated with. Despite his laid-back air, he describes the Difference Engine as a “Bootcamp” and he truly means it.
Startups work seven days a week from 8am to midnight, talking to mentors and working on their products. These mentors, successful entrepreneurs, gave their time for free and Bradford says that the Difference Engine is based on karma as much as anything else. Mentors were happy to help for no fee as it was a only short course, they were “giving something back” to those following in their footsteps… and there’s always the chance of getting in on a few business deals along the way. In fact, one mentor ended up as chair of one of the startups when the programme ended. That said, basing a programme on karma was a hard sell to the public organisations who helped fund the project, apparently!
Startups get £20,000 to cover living costs over the 13 week period and the few months following while they seek funding for their businesses or develop them further. In return the Difference Engine takes 8% of common stock in each startup. However, Bradford says that love is just as important as money – he enjoyed the thrill of discovering cool products and helping to take them to market.
No London distractions
Although the Difference Engine is based in the small town of Middlesborough, 250 miles from London, Bradford sees that as an advantage. “In London there are so many distracting events for entrepreneurs to attend. Being in Middlesborough means that there are no distractions; the startups can just get down to working hard at their businesses”.
If Bradford has one regret about the first wave of the Difference Engine, it’s that he didn’t have enough time to spare working with the startups himself. Although he was in the room with them for the full thirteen weeks, administration and organisational tasks took up much of his time. Now that he’s settled into the routine of the programme he plans to be a lot more hands on in wave two.
The Difference Engine is currently taking applications from startups worldwide. Digital and technology-based businesses will be considered, as will companies producing digital content. The video below is designed to show applicants what could be ahead for them and features interviews with some of the first wave’s startups.
work seven days a week from 8am to midnight (…) 13 week period.
hmm…what should i choose? start a company or live normaly and keep my health and sleep time on normal levels? let me think…
tbh it’s just 13 weeks. And they really seem to condense the first year of a startup into that period.
Essentially it seemed like an accelerator. They help you get as many contacts as possible in a short as possible time. You might take years to cultivate the contacts the company will need, such as the CEO’s of rather succesful accounting firms.
I was interested to find that those who were made the most of it were actually the experienced people, and not as you’d imagine the students without a job – least that what I’d always imagined about these programs.
As a former corporate burn out (honest) I wsa worried about it too, but to be honest the 13 weeks flew by. We’ve then settled back into more regular hours, but TDE was the kick in the arse we needed to get the business off to a flying start.
If you’re an entrepreneur or just serious about your idea, the answer is obvious (and it’s not living normally).
i will love to take part in this scheme with my new start up idea but can only commit part time due to current work commitments. I m based in the northeast is it worth applying?
Florence, it’s a full-time scheme. I don’t think they’d take anyone part time. Worth asking though, I suppose!