EcoMachines Incubator is offering equity investments of £100,000 to seven early-stage start-ups as part of a new accelerator programme.
The incubator will provide seed investment and support to businesses in the advanced engineering and high-value manufacturing sectors. A particular spotlight will be shone on energy, cleantech, transportation and sustainable cities companies.
EcoMachines Incubator says that it is attempting to ‘transform’ the early-stage funding model for hardware and engineering companies and will be providing mentorship, industry partners and a future investor network to the seven successful start-ups.
As well as £100,000 of funding, successful graduates of the programme could receive a further £500,000 of follow-on capital from the incubator.
Ilian Iliev, CEO and founder of EcoMachines Incubator, says that the move is about making the hardware space more attractive for investors again.
‘We still depend on hardware for everything we do,’ he adds. ‘Yet the lack of innovative funding models for early-stage advanced engineering start-ups is holding back the potential of both UK and international entrepreneurs to address some of the world’s most pressing problems.’
More on start-up accelerators:
- Mark Hales launches start-up Oxygen Accelerator
- Seedcamp for European entrepreneurial start-ups
- VC arm of Telefonica backs first start-up from its Wayra academy
The programme will last nine months, beginning in November, and is backed by high net worth investors with an interest in the sector.
EcoMachines Incubator will be located in East London in the area known as Tech City, and can count Google as next-door neighbours.
Nelson Philips, professor at Imperial College London Business School, believes that the arrival of a seed funding accelerator is an exciting development for the space.
He adds, ‘In recent years, investors have been attracted to the digital media and internet due to the fast time-to-market, relatively low capital requirements and high-profile stock market exits.
‘EcoMachines’ innovative investment model address many of the problems with current approaches to investment in hardware and engineering.’
