Issue 01 | Autumn 2014 | Quarterly
Brought to you by Buckworth Solicitors
ÂŁ5 where sold
London Calling Michael Buckworth on London as a startup hub
AUTUMN TRENDS ROBIN HOOD The latest fashions from True Gent and Raishma
A call for more taxation?
STANDSEVEN
CODING
Luxurious and ethically sourced products
The current buzz word for government and business
SEIS
TECHNOLOGY
Our quick guide to the tax relief scheme
An interview with the DIY Doctor
startuproar.co.uk
Dear Reader After months of planning, hard work and copious amounts of coffee, we are proud to present our brand new quarterly publication, StartUp Roar. StartUp Roar will bring you the latest happenings in the world of startups. Some of the coolest, most innovative and interesting startups will be showcased in our pages along with helpful background information and content from industry professionals. In addition, we aim to inform and educate entrepreneurs on relevant legal and finance matters ranging from incorporation to investment rounds. In this very first issue, we spoke to the founder of consumer champion DIY Doctor, sampled some nutritious wheat free high protein goods from CheekyByNature and reviewed products from StandSeven, Raishma and True Gent. StartUp Roar is published by Buckworth Solicitors which is the only law firm in the London market working solely with startups and early stage businesses. In publishing StartUp Roar, Buckworth hope to showcase some amazing entrepreneurs across Britain and provide resources and advice to encourage new entrepreneurs to take the plunge. I hope you find StartUp Roar informative and enjoyable. Happy reading! Miles Alexander Editor
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HELLO
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CONTENTS
FEATURE London Calling – 20 Michael Buckworth discusses the future of London as a startup hub
TECH DIY Doctor – 5 An interview with the founder and DIY Doctor himself
Bring on the Robin Hood Tax – 8 Ethical Currency call for a transaction tax
How Important is Coding in Schools? – 10 A look at coding in schools
Gaming on the Go – 13 Bringing coding up-to-date
Cubetto – 13 Introducing the coding toy for young children
LEGAL SEIS – 17 A quick guide CONTACTS T. 020 7952 1721 E. editor@startuproar.co.uk W. www.startuproar.co.uk StartUp Roar is published by Buckworth Legal Services Limited trading as “StartUp Roar”, 200 Aldersgate, St Paul’s, London EC1A 4HD.
FASHION Raishma – 24 Be the belle of the ball
All statements and opinions contained herein are those of the writers and content contributors and do not reflect the opinions of Buckworth Legal Services Limited. Any content of a legal or financial nature contained in this magazine is published by way of guidance only and shall not be deemed to constitute legal, accountancy, tax or financial advice. No content contained herein is intended to be, nor shall be interpreted as, a financial promotion. No advertiser or subject of any articles is or shall be deemed to be making or communicating any inducement to engage in investment activity of any kind.
True Gent – 26 Be seen in the finest threads
LIFESTYLE Sumak Travel – 36 Visit Rural Argentina CheekyByNature – 34 The three-way that won’t get you into trouble
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Stand Seven – 28 Acquire elegance and support good causes WatchFit – 32 Is fitness the new tech boom sector?
Buckworth Solicitors specifically disclaims any liability for losses, damages or other expenses incurred by any person as a result of reliance on any statement in this magazine. Copyright 2014. All rights reserved. No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of Buckworth Solicitors.
TECH
Call out the DIY Doctor An interview with Mike Edwards,
Everything we do uses our trade
founder of DIY Doctor.
background to get the consumer to the right place, safely, for the right price.
What is DIY Doctor? DIY Doctor is a home improvement
Where did the idea for DIY
help and advice website which uses
Doctor come from?
trade knowledge to give consumers help with completing their home
I ran a building company for twenty
improvement projects. We also have
years. I had promised a customer
a huge online shop where we help our
that her built-in bookcase would be
customers choose the right tool for
finished by Friday night. She changed
their job from the mass of tools which,
her mind so many times I ran out of
to the layman, may all appear to do the
timber. I “flew” round to the nearest
same job.
store to buy some more.
If the project is too tricky for the
Following a trip to the nearest home
consumer, we find them a qualified,
improvements store, I realised that
insured tradesman and offer them
there might actually be a better way
a free service which guarantees
for customers to find out how to do
protection against cowboy builders.
their DIY without the hassle of visiting
We
a DIY store.
also
help
them
price
the
project so they know what to I had already realised that consumers “I knew a little about marketing and knew that the customer must come first. However, the home improvement industry did not appear to be doing that.”
were not looked after in either DIY stores or builders’ merchants. The process of any kind of construction was a nightmare for them. This, together
expect in terms of cost and stop them
with an influx of cowboy builders, was
overspending by showing them videos
leading to some disasters in the home
on the best and most cost-effective
as people tried DIY rather than risk
ways of doing the job, as well as videos
being ripped off by a cowboy builder.
on which tools to use.
5
So that’s the problem. What was
I had become aware that consumers
the solution?
were disenfranchised when it came to getting DIY help. I knew a little about
I asked a friend who specialised in
marketing and knew that the customer
websites to build a Q&A website where
must come first. However, the home
my tradesmen and I could answer
improvement industry did not appear
DIY questions for the general public.
to be doing that.
“The BBC and Watchdog has labelled DIY Doctor as Industry Experts.”
I quickly realised that consumers
were
frightened to death of I knew this service would get attention
choosing a builder so DIY Doctor gave
and would be valuable to consumers.
them some guidelines. We wanted
I knew it would also highlight my
to offer them a watertight building
building company and offer very warm
contract that they could use for free,
leads should a customer decide not to
and remain safe. We knew enough
DIY and get a tradesman in.
cowboys ourselves to know that cowboys don’t sign contracts!
DIY Doctor had been conceived, although not built, when I wrote to
I went to Buckworth Solicitors for
Homebase and offered the service to
help with the contract and Michael
them. They loved the idea and in early
Buckworth and I got on immediately.
1999 we became Homebase’s DIY
It was great to work with a firm which
Doctor for a three-month trial period.
made every attempt to accommodate the client’s wishes rather than impose
When the trial ended – having
their own will.
answered over 2,500 questions for them, and pointed the questioners to
We put the contract together between
Homebase products, I felt that I had
us and it has worked brilliantly for 4
proven DIY Doctor was a valuable
years. Thousands of homeowners
can now focus on my
business and that its services were
have thanked us and we like to believe
main love, marketing.
in demand. And so, I decided to run
we have cured many sleepless nights.
The BBC and Watchdog
the company independently and it has been that way ever since.
What happened next?
has labelled DIY Doctor The process of being the homeowner’s
as
friend helped us gain trust in the
DIY
business and DIY Doctor simply grew
national TV and radio – my
and grew.
primary goal when I set out
Industry Doctor
Experts has
so made
15 years ago. DIY Doctor became bigger than my building company within six months,
So what next?
our own stage at trade shows and
so I sold the building company and focussed on DIY Doctor.
6
We also tour the UK presenting
We are still growing and we have a
showing consumers how to plaster
hugely specialised team in charge.
walls, tile bathrooms and, most
I have a great business partner and I
importantly, avoid cowboy builders.
TECH
diydoctor.org.uk 7
Bring on the Robin Back in 1972, a Nobel Laureate economist called James Tobin proposed a transaction tax on all spot conversions of one currency into another. The idea of the tax was to cushion exchange rate fluctuations by dissuading speculators from trading currencies. Tobin proposed that the cash raised should be used as aid for developing countries.
“We got tired of waiting for governments and huge financial institutions to commit to implementing a CTL so we figured that we’d go right ahead and do it to prove that it is viable and that companies, NGOs and consumers would choose to transact their business through a socially conscious company.” Alastair Constance, Founder
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TECH
Hood tax Forty years later, eleven EU member
As the song goes ‘Money Makes the
Ethical has chosen four charities
states including France and Germany
World Go Round’ and FX brokers
to which it donates: Animals Asia
announced that they wished to
sit in the middle of huge numbers of
is devoted to ending the barbaric
move ahead with introducing a
cash movements. As such, ethical
practice of bear bile farming and aims
financial transactions tax similar to
brokers like Ethical Currency are
to improve the welfare of animals in
Tobin’s proposal called the “Currency
perfectly placed to change the way
China and Vietnam. Great Ormond
Transaction Levy”. The UK in particular
that we think about and treat money
Street Hospital is an international
has opposed introduction of the tax as
and to encourage us all to transact our
centre of excellence in childcare.
the government believes that it would
business and financial flows through
Half the Sky was created in order to
harm the City of London.
companies who are willing to tax
enrich the lives of orphaned children
themselves and create innovative, new
in China. Finally, Msizi Africa cares for
But not everyone in the City of
and sustainable sources of funding to
over 1,000 children in Lesotho and
London agrees. Ethical Currency, a
fight global poverty. They believe that
South Africa.
new British foreign exchange broker,
finance could and should be a force for
has voluntarily decided to donate
good in the world.
Whilst many may dismiss the per-
0.01% of its per-transaction profit to
transaction donation adopted by Ethical
good causes, effectively adopting the
It is this kind of thinking that has the
Currency as a futile push towards
Currency Transaction Levy.
potential to create a revolution in the
an ideal which, though worthwhile,
manner of support for worthwhile
will never be achieved in the world’s
Founded by foreign exchange trader,
causes. Particularly in the current
financial markets, Ethical Currency
Alastair Constance, Ethical Currency
economic situation where donations
believes that one small business really
aims to encourage governments and
and grants to charities have been
can drive change in business. 0.01% at
international businesses to commit
dramatically
reduced,
a time.
to the widespread implementation
transactional
levy
and delivery of ethical approaches to
substantial support to good causes
business. By showing that one business
whilst going almost unnoticed by
can flourish whilst donating a small
businesses and consumers.
a
would
small provide
portion of its profits to worthwhile causes, Ethical Currency hopes that there will be less reason to object to a wider implementation of the Currency Transaction Levy, whether on a mandatory or voluntary basis.
“As funding for international development becomes more scarce, we need to be creative about finding new and sustainable sources of income. If consumers vote with their business then they will prove the commercial case and force a structural change in the global financial architecture.”
ethicalcurrency.com 9
How important is it is taught in our sch
requisite and business
is
technology
skills
to keep Britain at the forefront of technological innovation?
Over
constantly looking for ways to improve
the past decade,
efficiency and profit through its use of
the technology sector in the UK
On 2 September 2014, the Daily Mail
technology. As a result, the demand
has seen unprecedented growth.
published an article which stated that
for app and software developers has
According to research from Deloitte,
25% of adults believed that they could
dramatically increased.
not successfully complete the new
7 in 10 people in the UK now owns
proposed computer curriculum aimed
a smartphone with Generation Y –
At the same time, business and
at 5 year olds. One of the key changes
those aged around 25 to 30 – being
government have highlighted the lack
to the curriculum is the introduction
the most likely to own a smartphone
of appropriate technology skills in
of lessons on coding. Coding, until
at 89%. Employers and customers
the labour market. So, how do we
now, has been omitted from the
increasingly require 24/7 contactability
ensure our next generation has the
compulsory ICT curriculum with the
10
TECH
t that coding hools?
That ethos lead
has certainly struck a chord as
to a number of
Code Club operates 1900 volunteer
result
startups seeking to fill the gap left by the
led clubs throughout the United
that many young
current curriculum. Of these, Code
Kingdom
people have left education unable
Club
30,000
to code.
has been particularly successful. Code
(https://www.codeclub.org.uk)
teaching children
approximately to
code
since
September 2012.
Club is a nationwide network of free Coding specialists are thriving in the
volunteer-led after school coding clubs
Coming from a different perspective
current job market. Their services
for children aged 9-11. Code Club
are Drumroll HQ (www.drumrollhq.
are so in demand that top technology
creates projects for their volunteers
com), a very early stage startup
companies and emerging tech startups
to teach. The projects are designed
who develop simple games to help
are offering impressive salaries and
to teach children how to program by
teach young people to code. Their
unrivalled job security. The emerging
showing them how to make computer
first game, “Erase All Kittens” is an
UK tech sector is desperate for
games, animation and websites. Claire
open source platform game which
coders and developers and is looking
Sutcliffe, CEO of Code Club, said “Our
encourages players to hack into levels
to education policy to ensure that
goal is to inspire children to build their
in order to complete the game.
increased demand for them will be
ideas, learning along the way. We want
met over the next 5 to 10 years.
children to leave Code Club inspired
Gamification of education is a growing
to pursue other digital marketing
theme amongst education startups
This acknowledgment that coding is
activities, whether that’s in their spare
and is an interesting extension to more
now a crucial skill for the workplace has
time, in school or as a career.”
traditional education methods.
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“You should learn how to program” In the words of Joe Dytrych, Chief
up when a person is young and the aim
Button Presser of Drumroll, “Young
of our playsets is to instil in children the
people are spending more and more
logic and discipline needed for coding
time online, often playing games.
in a fun and entertaining manner.”
Creating games that teach players basic coding skills – especially if you
This year is the “Year of Code” in the
can do it without them really realising
UK, a year when the government
that they’re learning – is a great way
wants to encourage teachers to learn
of getting people super engaged with
to code and to pass those skills onto
learning code.”
their students. The national curriculum has changed to include coding logic
But at what age can we start to teach
as a compulsory subject and some of
our children the skills of coding?
our most innovative entrepreneurs
London-based startup (www.solidlabs.
are focusing their energies on teaching
co) has developed a robotic toy playset
coding skills to young people. As the
which teaches young children between
impact of technology on our lives
2 and 5 years old coding logic. The
increases year on year, it is hard to
playset is made up of a simple board
imagine that coding isn’t going to be a
into which the child can insert wooden
vital skill for young people entering the
pieces with different shapes. Each
job market for the first time.
shape represents a different instruction to the robot (for example, forward, left
The final word on coding should
or right). The combination of shapes
probably be left to an expert: “All of my
dictates the robot’s journey.
friends who have younger siblings who are going to college or high school -
Filippo Yacob, CEO of Solid Labs
my number one piece of advice is:
commented that “Coding logic, like
You should learn how to program.”
language, can be much easier to pick
Mark Zuckerberg
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TECH
Introducing Cubetto We introduce to you “Cubetto” developed by Primo, a Londonbased startup. Primo have created a physical programming interface that teaches children programming logic while they control the movements of an Arduino-powered robot (Cubetto).
All of Cubetto’s electronics are cleverly
Despite its simple interface, Cubetto
The real value in Primos’ creation
concealed inside a wooden box. The
introduces advanced concepts early
though is playing with Cubetto in the
child snaps coloured pieces (instruction
on. The function button is a small
real home environment. The child can
blocks) into holes in the wooden box
feature, but one that creates the
programme Cubetto to travel around
(the physical programming interface)
opportunity for real complexity. “The
everyday household objects. Cubetto
which build up a set of instructions
coolest thing we have seen a child
has a smiley face which is a nice touch
which are executed by Cubetto when
do is master the infinite loop on the
and distinguishes him (or her?) from
the child pushes a big function button.
physical interface,” says co-founder,
other coding toys. “Giving Cubetto
Filippo Yacob.
a face is something we are proud of because it gives him a personality,” says Filippo. “Children like him and that makes them want to help him find his way home.”
primo.io 13
Gaming on the Go! Since late 2013, three major
born! With its uber powerful 8-bit
Unsurprisingly,
gaming
have
processor,
innovatively
ergonomic
garnered worldwide attention; the
launched their 8th generation
hand-held
controller
and
the
public wanted to own a console
games
introduction
iconic
and
and businesses wanted to make a
combined sales of over 20million
charismatic Italian plumber, the NES
console. By the mid 1990’s, another
units
was destined for world domination.
Japanese
powerhouses consoles worldwide.
generating But
despite
of
an
these huge initial figures, sales have
the
technology
music/technology
giant
Sony, released its first games console
slumped as gamers ditch the trusted
Combined with widening television
with unprecedented success. The
homebound entertainment systems
availability, the NES took consumer-
technology had advanced considerably
in favour of mobile games on the go.
product interaction to a new level.
in the last decade to include a fully
StartUp Roar explores these changing
A sense of control and ownership
immersive 3D environment, which
trends in a world dominated by a back
was established as ‘players’ could
established depth, perception and full
flipping Italian plumber, alien-shooting
now manipulate the visual content
360 vantage points. Its gaming mascots
space fighters and sword wielding
on screen and faced a sophisticated
such as Lara Croft appealed to a wider,
elven folk.
computerised
more mature audience who could
opposition.
Teamed
with a damsel in distress storyline
relate to more naturalistic
It was the summer of 1983 that shook
and colourful magical creatures, the
‘human’ character
households across Japan; home life
NES’s titular game Super Mario Bros,
and
as people knew it would change
has sold 40 million units and is the
forever. No more aged board games
best-selling
or rotting colouring books. Emerging
Nintendo had conceived the
gaming giant, Nintendo, was about
“video gamer”.
to introduce a revolutionary piece of technology that promised hours of entertainment. Thus the Nintendo Entertainment System – more affectionately known as the NES – w a s
14
game
of
all
time.
thus
TECH
15
with g u e s t s , the loft! led to a fierce
ranging
from
outlandish
rock-
People
star avatars to decadent divas, by
wanted instant gratification. And it
answering questions from a chosen
had to be short, simple and sweet.
trivia category. There are currently 4
rivalry with Nintendo.
categories available to download as Cue the iPhone! Well more specifically
individual apps, all currently containing
Fast-forward to the 6th generation of
the creation of the ‘app’. In 2008
around 500 questions under the titles
consoles, Nintendo had launched the
American technology giant Apple
Videogames, World Football, Movies
Wii – a super interactive system that
launched its digital distribution centre
and Pop Music. With questions hailing
used the player’s body to stimulate the
for mobile apps, aptly titled the
from the tried and tested all the way
in-game features – Sony showcased
App Store. An app (or application
to present day affairs, the game is
its most powerful system to date, the
software) is a prepackaged piece of
pleasantly challenging yet decidedly fair.
Playstation 3, which boasted impressive
entertainment readily downloadable
And as apps can be remotely updated
graphics
newcomer,
on mobile devices. They require no
directly from developers, these quiz
PC giant Microsoft, provided rival
mains power, no boot up time and
style games remain ever changing
technology with it’s XBOX360. The
can be manipulated in the palm of
and relevant.
XBOX360 had huge storage capacity
your hands. Games became simpler
and processing powers for extended
and required just the right amount of
So although home based console
gameplay. The console world had
attention for the shattered commuter;
games will forever be imprinted in our
reached dizzying new heights with
enough to be relatively alert but
hearts (especially those of the 80’s and
more and more gimmicks to ensure
not
for
90’s), its time to accept mobile reality.
customer loyalty.
6am. Huge scale platformers such as
So savour the SNES and preserve the
Super Mario and Call of Duty proved
Playstation for special evenings curled
However as the console industry grew,
too time consuming and were thus
up on the sofa, surrounded by snacks
so did other technological advances.
replaced with hopelessly addictive
immersing yourself in a land of fire-
People demanded entertainment at
puzzle games (Candy Crush, Quiztix)
breathing dragons and gun-wielding
their fingertips as integrated use of
to provide short releases from the
monkeys. These golden oldies deserve
technology became commonplace in
stresses of work life. And it was easy
to be remembered. But for those living
the home, office and even in public
to see why.
in day-to-day working reality, grab that
and
relative
mind-blowingly
complex
phone and play those apps and taste
hangouts such as coffee shops and
that little sample of freedom.
transport. Lives were ever busier and
Quiztix engages users with a creative
work demands harder and thus time to
and playful platform that boasts
spend collecting stars to save Princess
clean graphics and rather humorous
Quiztix is available to download now
Peach took a firm back seat; and in
caricatures. As the “contestant”, your
on IOS and Android.
some horrifying cases, a demotion to
aim is to fill an auditorium of empty seats
16
quiztix.co
LEGAL
What is SEIS? The Seed Enterprise Investment Scheme (SEIS) is a tax relief scheme for investors investing in startups. The scheme has been created to encourage individuals to invest in early-stage businesses, which are typically considered high risk. Why
did
the
government
These tax reliefs allow an investor to reduce the tax he pays. In the case
introduce the SEIS?
of income tax this can be substantial was
with the potential for an investor to
to try and help small and early stage
reduce his income tax bill by 50% of
businesses get access to investment in
the amount he has invested in a startup
the form of issuing shares. Historically,
if certain conditions are met. On a sale
companies of this size have struggled
of the shares, the investor pays no
to gain much investment other than
capital
from friends and family or risky bank
requirements of the scheme have
The
government’s
intention
loans, which often require personal guarantees.
tax
(assuming
the
been met) on any gain. Other tax reliefs include a capital gains
The UK government recognized the importance of small and early stage businesses to the economic recovery post-recession
gains
and
decided
to
re-investment relief, which allows investors to reinvest money from the sale of certain assets into SEIS qualifying shares.
introduce SEIS to assist small businesses with securing a much-needed injection of capital. In
addition,
What
requirements
do
the
investors need to fulfil to qualify the
scheme
was
introduced to promote new enter prise and entrepreneurship.
for SEIS? The investors must invest in ordinary shares (those which do not have any special benefits attached to them).
What forms of tax relief are available under the scheme?
Another
of
the requirements There is a requirement that the
is that the shares
investment must be for genuine
are paid for before the
Principally there are two types of
commercial reasons (i.e. with a view
investor receives them. In
tax relief:
to making a profit from an appreciation
addition the investor must hold on to
in the value of the shares and/or
the shares for a certain period of time,
1. Income tax relief; and
receiving a dividend) rather than to
and certain other requirements must
2. Capital gains tax relief.
avoid paying tax.
be fulfilled.
17
One
of
the
more
interesting
requirements is that the investor
How does an investor claim
investment money has been spent or
the relief?
the company has traded for a minimum
cannot be employed by the company
of 4 months, the company can apply
during a three-year investment period
There are three main stages to the
to HMRC for a compliance certificate.
(this is subject to a few exemptions).
investor claiming the relief:
Once this has been received, the company can send out certificates to
What requirements must the company fulfil?
1. Advance assurance
the investors which allow them to
2. Statement of Compliance
claim relief.
(SEIS1) 3. Claim forms for investors
There are a number of requirements
(SEIS3)
that the company must fulfil in order to qualify under the scheme. Amongst
3. Claim forms for investors Each investor can claim the SEIS
1.Advance assurance
these is the requirement that all the
relief by completing a ‘Self Assessment’
tax
return
investment monies must be used to
This is an optional stage and it involves
for the year when he
progress a new trade. This new trade
the company applying to HMRC
bought the shares.
must be the main purpose for which
to obtain confirmation on whether
the company was set up.
or not it qualifies under SEIS. This is
Another advantage
in the company’s interests, as it will
to the scheme for
important
allow them to gain investment it might
investors is that
requirement is that the trade the
not have otherwise received (the
the
company is carrying out must be less
motivation behind the scheme in the
be claimed for
than two years old at the date the
first place).
up to 5 years
Another
extremely
shares are issued to investors.
relief
can
after the year in If this process is undertaken and
which the SEIS
The company must also be a resident
confirmation that the company does
investment
in the UK and not listed (e.g. on a stock
qualify is given by HMRC, then the
made.
exchange such as the LSE).
investors can relax knowing that as
was
long as they and the company continue The company’s gross assets cannot
to abide by the requirements of the
exceed £200,000, which means that
scheme they will receive the tax relief.
any company with substantial assets (e.g. property) will not qualify for
Conclusion SEIS
2. Statement of Compliance
the relief.
is
driving
the
investment market for startups and is a must have for most early
Once the shares have been distributed
stage businesses looking to raise
to the investors and 70% of the
equity funding.
“The vast majority of early stage investment is effected using the SEIS and EIS schemes. SEIS in particular is so attractive to investors that it makes the investment decision much easier and much quicker” Michael Buckworth, Buckworth Solicitors
18
LEGAL
19
London Calling Michael Buckworth, Senior Partner of Buckworth Solicitors discusses the enduring success of the UK and London as a startup hub. The UK has a rich and fruitful history of trade and commerce. The exploits of Drake and Raleigh in carving out new trading routes and markets for English goods evidenced an entrepreneurial spirit not just in these extraordinary men but also in the government of the time. The dramatic
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manufacturing developments of the Industrial Revolution (where England lead the world in developing and implementing new technologies) relied on the social and economic stability in England at a time when other countries were destabilised by wars.
FEATURE
21
Throughout British history, successive monarchs and governments have sponsored innovation and supported the growth of industry and commerce. Today, the UK boasts a business economy worth over $2.9 trillion. British business includes super-fashion brands such as Alexander McQueen and Vivienne Westwood, gas giants such as British Petroleum, retail businesses such as TopMan and Next and the modern tech entrepreneurs and investors who now work at the cutting edge of British business. However, maintaining its place as the 6th largest national economy in the world requires continued innovation. Innovation in turn requires economic stability, political support and the availability of the right skills in the workforce. As we move on from the trauma of the Scottish referendum and the political posturing around the West Lothian Question begins to dissipate, next year’s general election becomes closer and closer. Notwithstanding a general malaise with politics and, setting aside (to some extent) the differences between the main political parties when it comes to taxation and business policy, the next election represents a potential watershed in the continued growth of the British startup economy.
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New emerging businesses, (known colloquially as ‘startups’) are largely considered the driving force behind Britain’s growing economy. Following the ‘deep’ recession between 20072009, new government initiatives were put in place to help reduce the GDP deficit and encourage investment in young entrepreneurs and businesses. The Office for National Statistics recently reported a 0.9% expansion in the economy between April-June 2014 with over 440,000 new startups incorporated since January of this year.
Today, the UK has one of the most generous investor-incentives in the world. The Seed Enterprise Investment Scheme (SEIS) offers investors in high risk startup ventures up to 50% of the amount of their investment back as a deduction from their income tax bills and allows them to sell shares purchased under the scheme completely free of capital gains tax. Unsurprisingly, early stage startups now find it relatively easy to raise investment with the result that startups are in the main well funded.
But this innovation does not happen in a vacuum. The last two governments have put in place a relatively coherent compliance and fiscal framework which has incentivised entrepreneurs to innovate and investors to fund.
London is widely considered the startup capital of not only the UK, but the world. According to a survey conducted by Startup Bootcamp, the big smoke beat stiff competition from the likes of San Francisco and New York to earn the coveted title earlier this year. In East London – largely known for its tech startup community – 50,000 new tech-centric jobs were reported in late 2012.
FEATURE It is also estimated that 55,000 social enterprises are located in London, accounting for 1/5th of the total number in the UK. These two figures alone reportedly account for roughly ÂŁ8billion of turnover for the UK economy. Aside from the tax reliefs, what is it about London that attracts such huge startup interest? One explanation is the number of entrepreneurial schemes supplied by local universities. For instance London South Bank University (LSBU) provide a graduate entrepreneur scheme through which they sponsor some of their students to set up and run a new business.
Coupled with funding, LSBU provides advice and guidance from industry experts in a structured format resulting in the entrepreneur not just having a business but also an additional qualification at the end of the course. It’s these types of supportive schemes combined with nationwide investor tax-relief programs that is creating such interest in London-based startups. All of this success relies on continued government support and innovation. The next government, whatever its political persuasion, must retain the tax incentives available to entrepreneurs and investors, particularly the SEIS and EIS schemes. It must maintain the current level of grant funding available to startups. It must continue to de-regulate where possible. But more than this, government needs to intervene to correct deficiencies.
Whilst incorporating a company in the UK is quicker and simpler than almost anywhere else in the world, opening a business bank account for a UK company (particularly if you are not resident in the UK) is virtually impossible. The government talks about encouraging foreign business to re-domicile to the UK. Yet the high street banks refuse to bank for them. These inconsistencies harm the UK and stifle the very innovation government has strived so hard to encourage. The next election will decide the future of startups in the UK. We ignore the business policies of the main political parties at our peril.
Buckworth Solicitors is the only law firm in London focusing solely on startups. Founded in 2011, the firm has acted for over 500 startup clients. The Senior Partner, Michael Buckworth is one of the leading advisors for startups in the UK and won Corporate Lawyer of the year in 2014 from Lawyer Monthly.
buckworthsolicitors.co.uk 23
‘Fashion is so important in shaping not only the way that others perceive us, but also the way we feel about ourselves. So often, women have to compromise, either opting for a great fit or a stylish design. All women deserve to feel confident, glamorous and gorgeous in their outfits so, when designing Raishma, we took special care to ensure that our designs catered for both. We’re very proud of what we’ve achieved.’ Raishma Islam, Founder
Raishma is one of the UK’s fastest
Elizabeth
growing fashion labels.
unique designs, strong tailoring and
Emmanuel),
Raishma’s
attention to detail has created a range Taking inspiration from cultures across
that is not only stylish but, importantly,
the globe, Raishma’s ethnic-fusion
is flattering too!
designs are full of vitality, bold colours, patterns and glamour which have
This is a very exciting time for
earned them a loyal clientele including
Raishma who have lots of exciting
Royalty, A-List celebrities and even
projects coming up.
members of Parliament. For
more
information
about
However, this shouldn’t be a shock…
Raishma’s designs, or to request
As the brainchild of esteemed designer
an interview with Raishma Islam,
Raishma Islam (who trained under
contact us on info@raishma.co.uk
A pretty gold organza dress with red thread work embroidery on hem and bodice section. For a daytime look wear it with flats and a shrug or with heels and a leather clutch hand bag as an evening dress. £115
24
FASHION
Slate grey colour net one shoulder evening dress with beading stemming all over. This cocktail dress is red Oscar carpet glamour and is a timeless classic piece to add to your wardrobe. This dress is perfect as a bridesmaid dress or as a long evening dress. ÂŁ149
A classic shift dress in ivory organza with thread embroidery all over. Contrasting lining in a pretty taupe shade, and dainty frill cap sleeves finishes off the look. This dress adds a modern twist to a classic work dress or cocktail dress look! ÂŁ115
raishma.co.uk 25
Launched in October 2013, True Gent has fast become a growing brand, building its product base to over 1200 items across men’s fashion and lifestyle brands.
From an initial brand base of 12, True Gent now showcases products from over 30 brands and growing. Trend advice and blogs compliment the wide range of products and its fan base is growing too! True Gent’s social media profile is impressive with coverage across all major channels, and national campaigns to continually build brand awareness. Managing Director, David Archer, decided to take the plunge but it took three years for the big idea to come to fruition. “I’ve always been very style conscious and it was while studying in marketing that I saw a gap in the market for a
‘one-stop’
website
aimed
at
professional men between 20-45 who like looking good but are too
Accessories make-eth the man and
busy to trawl lots of different websites
this is certainly the case with the
for all their style needs,” he said.
Fendon watch. With its genuine
After putting the concept to paper, the
leather strap, this timepiece is the
True Gent business took shape and
pivotal of Italian craftsmanship.
the business was eventually launched in October 2013.
26
£342.00
FASHION The best selling shoes on True Gent, the Goodwin Smith Brogues are a staple for every man. Whether it’s a special occasion or another day in the office, you are certainly putting your best foot forward in these beauties. £95.00
This finest cotton twill navy trench coat is ideal for the summer-autumn transition. With brown suede details and an adjustable waist belt, you can dress up for work or dress down for drinks! £328.00
Come rain or shine, these suede and leather boat shoes look the business. From royal blues to deep reds, these classic nautical numbers add a dash of sophistication to any outfit. £55.00
true-gent.com 27
At STANDSEVEN we join the dots. We are curators and creators of objects. Looking for a path less trodden, a new way of going. Searching out and creating pieces that have their own story to tell. Our products are our poetry. Designed to last and not to be replaced. We work with artists, designers, architects to produce storied wares for a lifestyle we live. Seeking ethical ways of working without exception. Searching out and creating pieces that have their own story to tell. Supporting people in their making. Selling them on our destination standseven.com. All our products have a social impact, creating education or employment opportunities in off the grid communities with minimal opportunities. We work with 3 charities who make a measurable impact and who inspire us every day. Design and human dignity, without exception. We believe design can change the world. Join us. Ikena Carriera & Tamaryn White STANDSEVEN Managing Partners & Founders
‘7’ CUSHION Limited edition for STANDSEVEN Handcrafted in UK By Fine Cell Work STANDSEVEN is proud to work with Fine Cell Work, a social enterprise that trains prisoners in paid, skilled and creative needlework, undertaken in the long hours spent in their cells, to foster hope, discipline and self-esteem. STANDSEVEN has designed this limited edition 7 cushion, with intricate hand stitch work by Fine Cell Work. £190.00 (inc. VAT) 50 × 50cm Hand embroidered golden thread on dusty blue Osborne & Little linen; this limited edition STANDSEVEN cushion is made from feather-and-down, delicately soft and long lasting
28
LIFESTYLE
29
STOOL 7 Limited edition for STANDSEVEN Design by David Adjaye OBE Working corroboratively with architect, designer and OBE, David Adjaye, STANDSEVEN’s Stool 7 welds sustainable, recycled metals and ethical intentions into angular, sculptural lines. One of the leading architects of his generation, David Adjaye is known for his pioneering approach and innovative projects. A piece of in-house functional art, this stool is no different, architectural in its making and ethical in its creation. Each stool pays for one year’s school fees for one child in Shine on Sierra Leone, ranked the third best school in Kono district.
WOMEN FOR WOMEN Limited edition for STANDSEVEN. Handcrafted in Bosnia STANDSEVEN brings a collection of hand-woven home wares to your table. STANDSEVEN is collaborating with Women for Women International on geometric patterned thick cotton weaves and knits inspired by the rich heritage of the Ottoman Empire and crafted by graduates of the organisation’s program in Bosnia. These women are local artisans who work with the traditional craft and embroidery techniques of generations before. Women for Women International works in The Balkans employing women who have suffered through the Bosnian Croatian conflict.
STOOL 7 £920.00 (inc. VAT) Wholesale prices upon request 400 w × 270 d × 730 h mm Zinc plated recyclable steel Semi-matt gloss finish in RAL colour 7024 Other colours available upon request
CABLE KNIT THROW £240.00 (inc. VAT) 150 × 115 cm 100% WoolGrey An understated cable-knit blanket to curl up under or throw across your bed, an everyday indulgence. 100% dapple grey wool
30
LIFESTYLE
GOSPEL HOUSE TOYS Wooden toys, handmade in Sri Lanka Thoughtfully crafted and brightly painted, Gospel House Toys are handmade in Sri Lanka from sustainably sourced wood and non-toxic paint. Perfect play things for children, paired with the integrity and craft of grown-up artisan products. Founded in Sri Lanka in the seventies, Gospel House Handicrafts was set up to provide
THE GWEN JUMBO JET
employment for young people without opportunities and often with disabilities
£25.00 (inc. VAT)
preventing them from getting work elsewhere, training them how to make
30 × 29 × 18 cm
wooden toys, utility items and ornamental handicrafts. Translated from Singhala,
Decorated with non-toxic paint
‘Gospel House’ means ‘good news.’ STANDSEVEN has collaborated with them
Sustainably sourced wood
to make an exclusive range of childrens toys.
Handmade in Sri Lanka
THE JIMI HORSE £19.00 (inc. VAT) 18 x 17 x 8 cm Decorated with non-toxic paint Sustainably sourced wood Handmade in Sri Lanka
standseven.com 31
WatchFit Is fitness the new tech boom sector? StartUp
Roar
reviews
WatchFit, one of the latest and most popular fitness apps currently on the digital market: It is the end of September, Winter is around the corner and Christmas is creeping up on us. And if you, like us here at Startup Roar, have literally ‘thrown in the towel’ since promising yourself a “new year, new you” gym routine in January, there may just be one thing that forces you back onto that treadmill. Besides, we could ALL do with some damage control over the holidays! In 2014 it’s safe to say that the way we exercise and engage in fitness, is somewhat different to that of the previous century. Now with smartphones and tablets, everyone is able to have a ‘digital’ personal trainer accompanying them at all times; to enlist motivation, drown you with guilt (put that cake down!) but most importantly provide
you
WatchFit
is
with essentially
knowledge. a
fitness
bible – a huge resource and bank of exclusively provided health and fitness related material which grows by the day. But WatchFit is going beyond the standard app by challenging the
32
LIFESTYLE
USA & Australian TV Celebrity Chef Pete Evans, one of many high profile experts found at WatchFit.
root cause of peoples fitness woes; the notion that it is laborious and dull.
You
can
rest assured that all information The app encourages competition. It turns your fitness progress into a game. Once logged in, you can invite friends into the mix – and yes, you guessed it – you can stalk their progress too! Because although we may not be a nation known for healthy eating, we certainly are nosey parkers. And if Julie
in the WatchFit database is up-to-date, relevant and only delivered by seasoned health
and
fitness
professionals.
In addition, WatchFit has a number of high profile sports personalities as
watchfit.com WatchFit Founder and CEO Parisa Louie Picture: Andy Lesauvage. lesauvage.tv.
users and supporters. So you can train
from the office documents her “only
with the best of them and imagine
700 calories today” accompanied by
yourself cycling, rowing or running
“great hour sesh at the gym”, you’ve
to victory at the next Olympics.
just simply got to outdo her… right!? So it’s time to get back on that bike, put This is the perfect way to go about
down that “one more cookie” and log
fitness. It instils motivation, encourages
into the bright interface of WatchFit.
healthy competition and genuinely
Truly challenge your post Summer
makes you feel like you are not going
health kick and make fitness fun!
through it alone. As, despite what some fitness extremists may profess,
WatchFit
exercise isn’t easy for the majority.
free
on
is the
available Apple
App
for store!
33
Everyday we consume it. We often take it for granted and, at times, it gives us a great sense of pleasure. I am of course talking about food. And for those of you who, like me, can’t resist a smooth operator with a rugged and crunchy exterior, you will be delighted to know that there is a new player in town ready to shake things up. Join me to end our long-lasting love affair with the food we know, and spark up a new relationship that is CheekyByNature.
CheekyByNature is the product of
that were available were all incredibly
The branding makes snacking a guilt
Clay Niccum, a graduate of London
dry and bland. I just wanted to give
free, enjoyable experience. This is
South Bank University’s National
people a reason to smile”.
exemplified by the incredibly
Bakery School. CheekyByNature aims
fun and creative names
to challenge people’s attitudes to eating
Since
wheat and dairy-free baked treats.
CheekyByNature has gone on to
For example, you
In 2007, after his mother developed
produce two signature lines of baked
can order a “3-
diabetes, Clay became tired of the
goods including cookies, brownies and
way (a triple
lack of tasty yet nutritionally balanced
cupcakes. The original range reflects
chocolate
products available for consumers with
the origins of the company: delicious
cookie)
or
wheat, dairy and gluten intolerances.
wheat free treats that are nutritionally
munch
on
balanced without compromising on
a
“CheekyByNature comes from a place
taste. The second (considered the
Butta
of complete honesty”, Niccum said, “It
premium line) offers customisable
if you prefer
came from a genuine place of wanting
cakes suitable for any occasion.
something
its
launch
in
2007,
to help people. When my mother was
bit
diagnosed as diabetic, it was frustrating
However, it is not just the quality of
to see the lack of options available to
the products themselves that make
her. And the small amount of goods
CheekyByNature unique.
34
of
the
products.
“Peanut Luva”
more
and moist.
a fluffy
LIFESTYLE
“People are often made to feel guilty about ordering a treat” explains Niccum. “I want to inject that fun back into snacking and create an emotional experience when my customers buy the products. I mean, going up to the
T h e
counter and saying ‘I’d like the 3-way
3-way
please’ just creates a sense of fun and
Cookie:
novelty that I feel has been stripped
As the saying goes,
out of snacking in recent times”.
‘everything comes in threes’
W h e a t Free Brownie:
and this couldn’t be more apt for this
Eating healthily is all the rage at the
Clay, very kindly, supplied the team
cheeky number. With dark and white
moment with many a hardworking
here at StartUp Roar with two
chocolate chips and dark cocoa, these
businessman
samples from his baking collection.
cookies are every chocolate lover’s
for alternative “snacks” in a bid to
One, an original recipe, that has
dream. The exterior is lightly crisped,
stay fit! However this is often at the
been around since the company was
leading up to a dreamily moist centre
compromise of taste because, lets face
founded. And two, a more recent
that melts deliciously on the tongue.
it, there is little fun in munching on
creation that is likely to go into
The chocolate taste is dominant yet
carrot batons and celery sticks.
production following an
not too overbearing or rich, allowing
exciting
new
joint
and
woman
opting
for a satisfying indulgence without the
This brownie is moist, gooey and all
venture
(more
post-consumption
And
things good. Although wheat and
news
soon!).
with higher protein content and fewer
gluten free they are succulent enough
Here are our
refined sugars than most comparable
to leave you beyond satisfied whilst
reviews of the
high-street delicacies, a lunchtime
also boasting health benefits such as
two devilishly
ménage-a-trois
being easily digestible and helping
good treats!
guilt free.
heaviness.
seems
surprisingly
stabilise blood sugar levels.
So if you’re tired of flouncy named foods but still want to be mindful of your daily diet, ditch the duds and embrace
“People are often made to feel guilty about ordering a treat”
these little packets of heaven!
studmuffinz.com 35
Sumak Travel Launched
in
August
2012,
Latin America. It is operated as a social
authentic experiences for discerning
is
enterprise, putting local communities
travellers.
operator
and the environment at the centre of
‘good living’ in Quechua; and for the
and social enterprise offering
its model. Profits are reinvested into
organisation founders, it embodies the
inspirational, community-based
the business and into community-led,
idea of caring for people, cultures and
travel
productive projects in Latin America.
nature – principles that are all key to
Sumak a
Sustainable
responsible
tours
Travel
tour
and
adventures
across South America and Costa
Sumak
Kawsay
means
true, sustainable development. Sumak
Rica. The London-based company
Sumak’s mission is to contribute to the
strives to exemplify ‘good sustainable
specialises
private
empowerment of local communities
travel’ in everything that they do.
tours and works directly with local,
in Latin America by running an ethical
community-based tour operators in
business that provides rewarding and
in
tailor-made
Buenos Aires, The Iguazu Falls and Rural Argentina Experience with Sumak Travel.
The private 16-day tour includes accommodation,
internal
flights
and transfers, guided activities and excursions and most meals. Prices
This unforgettable Argentina tour takes you on a journey through
start from £2,235 per person (based
the northern regions around Salta, where you’ll discover some of
on two sharing). Return flights to
the world’s most breathtaking landscapes and immerse yourself
Buenos Aires start form £650pp.
fully in its fascinating local culture and nature. You’ll also get to
More details about the tour: http://
know Buenos Aires, take a day trip to Uruguay and experience
www.sumak-travel.org/product/
the superlative Iguazu Falls, crashing through the jungle on the
buenos-aires-iguazu-falls-and-rural-
border with Brazil.
argentina-tour/
36
LIFESTYLE
sumak-travel.org
You are invited to attend one of our
free legal seminars on Startup Law: EIS and Follow-on-Rounds
Christmas Drinks and End of Year Summary
Introduction to Startup Law
19th November 2014, 6:30pm
18th December 2014, 6:30pm
15th January 2015, 6:30pm
Club Workspace Clerkenwell, London EC1R 0AT
Club Workspace Chancery Lane, London WC2A 1HR
Club Workspace London Bridge, London SE1 3ER
Sign up at www.buckworthsolicitors.co.uk 200 Aldersgate | London EC1A 4HD