Britain’s startup accelerators boom by 110% in just three years

Britain is in the midst of an accelerator and incubator boom, according to new research revealed by Telefonica/O2.

The report revealed that over half of the programs currently operating in the U.K. were launched in the past 3 years.

This timeline mirrors Britain’s tech sector’s explosive growth since the government’s endorsement through the Tech City programme in 2010. It appears this early endorsement has acted as a catalyst, with the private sector now accounting for over 40 percent of all startup programs in the U.K.

Growing regional divide

Despite the best intentions of government policy, the overwhelming majority (61 percent) of programs are still focused around the capital, accounting for 10 times more than the total number of programs outside London.

This divide means many talented entrepreneurs are continuing to gravitate towards London, despite the higher costs associated with being based in the capital.

The regional outlook in the near future looks positive, with Birmingham and Edinburgh demonstrating growth and doubling the number of programs in the past two years.

Wales and Northern Ireland continue to lag behind in numbers of programs, despite the growth of co-working spaces including TechHub’s new Swansea base.

Accelerated startups more likely to fundraise

Perhaps unsurprisingly, incubated and accelerated startups are more likely to secure investment — on average more than £68,000 following graduation.

Commenting on the report Feilim Mackle, O2’s Sales & Service Director said:

Having set up the Wayra London Academy over two years ago, we have seen first-hand the advantages of acceleration; more than $28.6 million has been raised for Wayra’s companies.

But it isn’t just the startups that benefit, by fostering and investing in these start-ups, we as a big business are able to learn from them and also bring the best products and services to our customers.

Read the full report here.

This story originally appeared on Tech City News. Copyright 2014