Tech startups set for £1m Silicon Roundabout government boost

The government-backed Technology Strategy Board (TSB) is to plough £1m into UK tech startups in an attempt to boost the prosperity of the digital hub known as Silicon Roundabout in east London.

The Tech City Launchpad competition for funding will begin on 6 May. Although open to companies based in the Old Street and Shoreditch areas of London as well as those outside, it is primarily focused on enhancing the tech credentials of the east London district, according to the TSB.

"It is important that we nurture clusters such as the one that has grown up in this area. They are the crucibles where new industries are born, where communities support one another and where companies grow to become globally competitive," said universities and science minister David Willetts.

"This initiative, with strong community involvement and including co-ordinated help to enable the companies to move quickly towards commercialisation, is exactly what clusters need."

Startups will be invited to submit two-minute video presentations which will be whittled down to 20 firms which have to follow-up with a written proposal. The winning 10 will each be given £100,000.

The hope is that the kick-start cash will help the winners secure co-funding from venture capital firms more easily, according to Elizabeth Varley, chief executive of local startup group TechHub.

"This initiative is ideal for small and micro companies and startups in the Tech City cluster, which often struggle for capital or easy access to finance," she said.

"That successful applicants will be supported in attracting match funding is an important part of this project."

The news comes hot on the heels of the Budget last month in which chancellor George Osborne unveiled several policies which could help startups, including a new venture called Start-up Britain which has already received the backing of Google and HP.

In addition, the TSB last month flew 18 budding tech entrepreneurs to Silicon Valley on a trade mission designed to help promote the businesses to an international market and give them unrivalled access to senior executives at companies such as Twitter.