FAQs
How do I apply for funding?
Just complete an application, applications for the next cycle have now opened.
What sort of start-ups do you fund?
We will fund digital businesses which are typically web-based or software orientated which version 1.0 or for more ambitious projects a prototype can be developed within the 13 week programme. In general, we’re interested in disruptive technology solutions that are not capital intensive.
If you are looking for inspiration we would recommend that you read the Paul Graham article Startup Ideas We'd Like to Fund.
How much funding can I expect and for what shareholding?
The companies which we accept on the programme will get £20,000 per team - no matter how many founders there are – for an equity shareholding of 8% of the common stock. There will be no strange additional terms and rights associated with our shares.
Who is behind this and why?
The Difference Engine’s backers are One North East, Middlesbrough Council and Sunderland Council who have taken the bold and ambitious step to bring this innovative approach to supporting early stage digital businesses to the North East of England
They believe that access to see accelerators should not limited and should be common place and in a bid to help meet the unprecedented demand for such programmes, our backers have opened the programme to anyone from anywhere.
This programme is also supported by DigitalCity Business, Sunderland Software City and the Entrepreneurs' Forum. Through their combined expertise and experience we hope to make your dream a reality. We think the North East of England is a great place to build a business and we would like you to join us here.
Do we have to stay in the North East of England after the programme?
No. You will be under no obligation to stay in the North East. We will not impose any restrictions or conditions which might penalise you if you choose to leave.
We will actively encourage you to stay because we think that the North East of England is a great place to build a business and when you are here I think you will agree.
Do you have to stay in the North East of England for the duration of the programme?
Yes. You and your team need to be in North East of England full time during the 13 weeks of the programme. It’s the best way for us to help you during this critical period.
What else does the Difference Engine provide?
Our next intake will be based at Sunderland Software City located in Sunderland. In addition to mentoring, support and office accommodation, we will also provide teams free server hosting, legal services and other services from our partners.
How do we get funded after the programme?
We recognise that our funding will only go so far and the likelihood is that you will probably need more funding. At the end of the programme we will organise an Investor Demo Day where you can pitch to angel investors and venture capitalists from the North East and elsewhere.
The North East of England now has a suite of investments funds under the JEREMIE initiative to the value of £125m. This is aimed at increasing the availability of finance to small and medium sized enterprises (SMEs).
Did we mention that we love high growth businesses!!
I am a single founder will you accept me?
Yes, but the odds are against you. The programme is incredibly intensive over in a short period of time and starting a business is about building a strong balanced team.
Where will I live?
That’s your responsibility; however we have lots of experience working with businesses relocating and we will help introduce you to a number of parties who will be able to provide you with housing. We are here to help.
Is age a factor?
No, but if you’re a young entrepreneur we would recommend that you read this TechStars article Questions about age. The typical age range of our founders is 25-40 years old.
Do I need a business plan?
No. We will make our decisions based upon your application and personal interviews.
What is the deadline and the timelines?
We have opened applications for The Difference Engine with immediate effect for our January 2011 intake. The closing date for applications will be 3 October 2010.
Can I apply if I am not from the UK?
Yes. The programme is open to entrepreneurial teams within and outside Europe, as long as you and your team can work in the UK legally. If you need working visas you will have to sort that out yourself.
If I already have funding or am incorporated, can I apply?
We recommend that you do not incorporate if you have not already done so. That said please do apply even if you have already formed a company.
For overseas companies we may require you to set-up a UK registered company – it’s usually not a problem and easy for foreign nationals.
Is my start-up too early (or late)?
No, we will consider any start-up. The programme is about accelerating ideas and businesses. If we think we can have a meaningful impact we will consider your application.
Who are the mentors?
Mentors can come from a variety of backgrounds. These can include serial entrepreneurs, founders, technology experts, and professionals such as lawyers, marketing specialists, accountants and venture capitalists. Follow this link to see our mentors which is constantly growing.
Will you sign a Non Disclosure Agreement?
No. We see too many ideas and companies to sign an NDA.
What happens at the end of the Difference Engine?
At the completion of the Difference Engine the help doesn’t end. DigitalCity Business and Sunderland Software City will continue to help you move forward into a great company, who will be there to help you take those important next steps.
How is our programme different from Angel Investors and Venture Capital?
Our primary motivation is to help entrepreneurs achieve their dreams. Some angel investors will invest at early stages but they are sadly a minority and often their guidance does not have the same kind of structure and intensity as an acceleration programme. Through the programme we will create the foundation from which you can raise finance from angel investors and venture capitalists.
How is our programme different from Seedcamp?
We think Seedcamp are great and everything they have done for European start-ups. Since inception they have received applications from 1,500 teams. In 2009, Seedcamp selected 22 teams who attended the Seedcamp week in London, of which 6 received funding and support through their 3 month programme.
We want to help too. Through the Difference Engine we hope to accelerate 20 teams each year and move them on to the next level.
During the planning of The Difference Engine we visited many different acceleration programmes in the UK and US and we feel that the TechStars mentorship lead approach would work best in our region.
The Difference Engine sounds like a great idea, but why would I move to the North East of England?
For early stage companies, we believe that on the balance of probability you will progress further and faster by taking part in The Difference Engine than if you did not.
We are committed to helping early stage digital businesses and in itself, this ambitious approach demonstrates how important we believe digital businesses are to the future of the North East of England.
