Barclays Eagle Labs awarded Digital Growth Grant over Tech Nation
The UK authorities has awarded Barclays Eagle Labs a £12m digital progress grant to assist know-how startups and scaleups throughout the UK, changing longstanding supplier Tech Nation within the function.
The Digital Growth Grant funding was established by the Department of Digital, Culture, Media and Sport (DCMS) to assist the event of the UK’s tech sector and assist current know-how companies scale. The money shall be break up over two years, and was awarded via an open competitors and evaluation course of.
The function of Tech Nation, which beforehand administered the funding and depends on authorities grants for 75% of its revenue, shall be phased out in March 2023 and changed by Eagle Labs, a startup incubator run by Barclays.
The grant award confirms studies from September 2022, which revealed that Eagle Labs was in line to obtain the funding, and which prompted 140 tech founders, executives and investors to sign an open letter arguing that, “Providers of government-backed support should be grounded in the startup ecosystem and local ecosystems across the country – not looking to ride on its coat tails.”
While the signatories stated they assist the evolution of the ecosystem, they “are concerned that this change risks throwing out the baby with the bathwater – and in this moment of crisis, the message this sends about what government thinks of the sector is damning.”
Responding to its lack of funding, Tech Nation said: “In anticipation of the government’s decision to award the Digital Growth Grant to another party, we have been working around the clock to secure our future and continue delivering for UK scaleups. It is essential that any route forward for Tech Nation ensures we are able to continue to act in the best interest of the tech community and put the needs of scaleups front and centre. This is the principle that has always guided us, and will guide our decision making over the next steps we take from here.”
Tech Nation added it has supported the expansion greater than 5,000 startups; delivered £15 return on each £1 invested by the UK authorities; contributed £600m of added worth to the UK financial system since 2014; and created 13,000 jobs. It additional added that 40% of all UK unicorns (companies valued at over $1bn) graduated from a Tech Nation progress programme, and that its alumni have collectively raised a complete of £28.1bn in funding.
DCMS confirmed that different authorities funding acquired by Tech Nation, together with for its function in securing visas for founders, is not going to be affected by the choice to award the grant to Eagle Labs. It additional claimed that mixed funding from the federal government and Eagle Labs, which already offers progress and assist programmes from 38 of its branches throughout the nation, will assist greater than 22,000 companies, not less than 80% of that are primarily based exterior London.
“We want to unlock the potential of the next generation of startups and scaleups and boost tech businesses in all corners of the country,” stated Paul Scully, minister for tech and the digital financial system. “Barclays Eagle Labs are digital industry experts and will help tens of thousands of tech firms and founders to achieve their dreams and create jobs and economic growth.”
According to DCMS,, the grant will assist Eagle Labs to fund coaching assets and alternatives for entrepreneurs; present specialist assist for founders from underserved communities; and arrange efficient native networks to assist tech companies the place ever they’re situated. It added the grant may also permit Eagle Labs to launch new providers and develop current ones, with the funding anticipated to double the variety of mentoring classes supplied to tech corporations to 1,500 a 12 months.
“Eagle Labs’ vision is to make the UK tech sector an engine for growth and for the UK to be the best place in the world to start and grow a tech business,” stated Amanda Allan, director of Eagle Labs.
“Through the Digital Growth Grant, we’re excited to double down to reach more businesses across the country with our best-in-class business growth programmes and bespoke regional support. We have a track record of supporting over 8000 startups and high-growth businesses since we launched in 2015 and we’re proud that, due to our established Eagle Labs network, we can pass through all grant funds to our delivery partners and programmes, helping to maximise the impact of the grant in supporting the UK tech ecosystem.”
