Entrepreneur to extend centre to more firms

Justin Whitston set up Venturelab in Leeds last year because he felt public sector growth and funding organisations did not always provide candid advice to would-be entrepreneurs. The centre provides services such as business plans, internet access and advice on routes to market for new businesses and members can turn to Mr Whitston for investment.

Now the former car rental entrepreneur wants to hear from firms in any sector which are in their first three years. They can keep on their own premises even if they sign up to use Venturelab’s services.

Mr Whitston has said he will make £2m available over the next three years and will begin by offering £25,000 in loans or equity to six businesses start-ups. Firms interested can submit business plans online and the next deadline is at the end of June.

“(I want to find) businesses where I can add value and the team here can add value.”

After firms have worked with Venturelab for six months, they will discuss whether to bring the product to market – if they have not done so already – obtain more funding from Mr Whitston or put the business out to attract further financial backing from high net worth individuals.

Venturelab’s own income stream will come mainly from its investments – profits, dividends and eventually the revenue from exiting a business – as well as separate member services, such as a business plan review, an entrepreneur masterclass and consultancy on internet and IT strategy. Mr Whitston’s investments will not be “target-driven”, which he said had been a problem in some of the public sector seedcorn funds.

He previously set up Nexus Vehicle Management, in Leeds, in 2000. He started with just £15,000 of borrowed money and grew it into a multi-million-pound turnover business before selling it in 2007.