The UK government has pledged to invest £1m into technology startups in and around the Old Street and Shoreditch area in east London, otherwise known as Silicon Roundabout.

The investment was announced today by Ed Bott, the Technology Strategy Board’s director of Innovation Programmes, and will provide over 200 startups in the area with the opportunity to apply for £100,000 in funding for their projects via a The Tech City Launchpad competition.

To apply, companies need to submit a two minute video detailing their vision for the company. From there, twenty applications will be invited to submit written proposals, with a final ten selected and offered up to £100,000 funding each. The Technology Strategy Board will also help approved projects match funding through a funding workshop which includes business angels, venture capitalists and other companies in the digital and creative industries.

Iain Gray, the Technology Strategy Board’s Chief Executive, said:

“Companies in the digital economy and the creative sector are different from those in manufacturing.  They are less capital-intensive, tend to be small or micro companies and often form tight geographical clusters.  This unique competition is designed specifically to promote the community dynamic within these vibrant clusters, encourage cooperation and, ultimately, grow business in the area for the benefit of the UK economy.”

The final ten companies will have 12 months to match funding they require. If the initiative is successful, it may be rolled out in other parts of the UK, across additional sectors.