Virgin StartUp has announced that it will be distributing up to £36 million in Start Up Loans to early-stage founders over the next two years.
Virgin StartUp is expanding its role as a support partner for the Start Up Loans scheme run by the British Business Bank. Start Up Loans helps support new business owners who have often struggled to secure finance for their enterprise.
This expansion means that Virgin StartUp will distribute up to £36 million in Start Up Loans and support an estimated 3,000 early-stage founders over the next two years, giving access to finance for thousands of would-be business owners from across the UK who often struggle to secure finance from traditional lenders.
Successful start-ups
Virgin StartUp has already delivered £70 million of funding to 5,000 UK founders in the past ten years. In 2019, the company announced its 50/50 pledge to equally support women and men founders.
In the past decade, it has funded some of the fastest-growing UK start-ups, including Mous. In 2014, Mous received a £7,000 Start Up Loan through Virgin StartUp which gave the brand the kickstart it needed. Mous now has 1.8 million customers in more than 150 countries worldwide and the company is valued at £65 million.
"We attended a workshop run by Virgin StartUp and quit our jobs right away. We didn't waste any time putting that Start Up Loan to good use and used the funds to buy a 3D printer. We also moved to China to become masters in manufacturing. It was a bold move, but it turned out to be the best decision we ever made." James Griffith, ceo and co-founder of Mous.
According to research conducted by Virgin StartUp in January, 26% of UK adults are interested in setting up a business this year, rising to 46% of 18-24 year-olds.
Andy Fishburn, managing director at Virgin StartUp, said: "There is nothing more inspiring than listening to the ideas of new business founders who want to have a positive impact in the world. In the past ten years, we've had the pleasure of supporting 5,000 founders with a Start Up Loan and we can't think of a better way to celebrate this milestone than to announce that we will be funding many thousands more over the next few years. The Start Up Loan scheme makes starting a business a reality for many more would-be founders. We are proud to be part of their journey and we can't wait to meet and support the next generation of entrepreneurs."
How to apply for a Start Up Loan
Applicants must be over 18 and have a business that has been trading for less than three years. You can borrow from £500 to £25,000 per founder (up to £100,000 per business), and pay it back within five years, at a fixed annual interest rate of 6%. There are no early repayment fees or set-up charges. Virgin StartUp also offers business advice, mentoring, access to training and scale-up programmes.
Written by Rachel Miller.