The Hunter Foundation has launched a programme to support potential high growth businesses to scale, in partnership with Scottish EDGE.
The Pre-Scaler programme will see entrepreneurs go through a combination of online and in-person development events, complementing the existing ScaleupScotland core and 2.0 programmes.
The development events will kick off with a core module on fundraising, valuation and cost of capital, along with modules on people planning, leadership, sales and marketing. Board and governance training will be delivered by established ScaleUp programme partners, including David Sole’s School for CEOs.
Pre-Scaler is open to any entrepreneur running a business that has real ambition and drive to go to scale and will be hosted at the Hunter Foundation's new headquarters at Blair Estate.
Its founder Sir Tom Hunter commented: “Scaling businesses move the economic dial and we need to do more to support those with that ambition to accelerate their growth in a managed way.
“Importantly this will be delivered by entrepreneurs for entrepreneurs – people who know the pain, pitfalls and opportunities building a scalable business brings..
“We have seen through our support for Scottish EDGE that those with real ambition frankly need a lot more support than is on offer or available hence Pre-Scaler.”
Speaking to Insider, he explained that the original ScaleupScotland scheme was for ambitious businesses worth between £1m and £10m, while the 2.0 programme was developed to fill the gap at more like £100m, but what has been learned is that there's more to scaling-up than money.
“That's probably the hardest time, the loneliest time, things are tough and every entrepreneur thinks that all they need is money at that stage, but what they actually need other people to talk to an bounce things off - the secret sauce with all out projects is the learning piece.“
Evelyn McDonald, chief executive of Scottish EDGE, added: “We're delighted to be partnering with the Hunter Foundation to deliver this programme aimed at growing businesses.
“We know from experience that our businesses need more than just cash in their journey to scale and this series of workshops aims to help them with their development.”
Scottish EDGE-backed businesses will be encouraged to apply, however the programme is open to any entrepreneur based in Scotland.
Applications close on 24 March and entrepreneurs should submit a two minute video covering their business, revenue from the past year, ambition in five years’ time and any plans to fundraise.
The programme is sector agnostic.
Up to 20 pre-scaling businesses will be selected for the first cohort by four judges: Chris van der Kuyl, principal of Chroma Ventures; Ana Stewart, partner at EOS Advisory; Evelyn McDonald, chief executive of Scottish EDGE; and Ewan Hunter, chief executive of the Hunter Foundation.
Participating entrepreneurs can expect to commit up to five days in total to the programme, starting in May this year and concluding September, where they will have the option to pitch to a panel of potential investors.
The programme is fully underwritten by the Hunter Foundation and there is no charge to participating companies for this market test – although if demand is significant a fee may be charged going forward for the next cohorts to cover costs, subsidised by the foundation.
Soon after launching last autumn, the second ScaleupScotland scheme came in for criticism due to what some saw as a prohibitive entry fee of £10,000 per business 'towards costs'.
Hunter told Insider: “I didn't really understand the previous criticism, when you get something for nothing, that's usually what its worth.
“This is really valuable stuff, with world class people involved, but we'll do this first round as a token one-off, then we'll listen to feedback and ask whether it's worth doing again with a fee attached to cover costs.“
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