FUNDING AND FORMS OF SUPPORT 50% of the respondents o ff er financial support to startups, which takes the form of equity, grants or debt financing, with a majority of the hubs mixing these instruments. Grants, however, were the most popular instrument with equity coming in at a close second. 77% of hubs that o ff ered financial support claimed to invest up to $10,000 per startup with a total of 1194 startups funded since the hubs’ incep- tion, according to the 103 hubs surveyed alone. Investments into 86% of the 1194 startups that received funding from hubs was done between 2018 and 2021, with investments into the startups reaching its peak in 2020. A possible explanation for this is that as more and more hubs launch each year, a larger pool of very early stage capital is becoming available to startups. Another likely reason could be that by 2020, startups in the hub programmes had become de-risked and invest- ment-ready.
37.5% of hubs surveyed indicated that they purchase equity shares in their cohorts while also in-kind support, which includes access to physical, technological and so ! ware facilities, is a big part of the financial support o ff ered to cohorts. The hubs also o ff er non-financial support that takes di ff erent forms with the main ones being: workshops and bootcamps business advice
networking and investor meetups dedicated mentorship and training
CO-WORKING SPACES More than 80% of the hubs o ff er physical space and facilities to the startups in their cohort. This ensures the startups access the resources they need, all under one roof. Aside from their cohort startups, many of the hubs o ff er their space to individuals for hot-desking/co-working, which also acts as a source of revenue for them.
FIGURES 13 - 16
FUNDING TO STARTUPS
STARTUPS FUNDED BY YEAR
$0-$999
400
$1k-$4k
300
$5k-$9k
200
$10k-$19k
100
$20k-$49k
0
$50k-$99k
2014
2016
2020
2012
2018
0
15
5
10
Total
TYPE OF FUNDING ALLOCATED
INVESTABLE CAPITAL FOR 2021
Non-Equity Only
$0-$49k
2.0%
$50k-$99k
Equity 10.2%
$100k-$249k $250k-$449k
Grants 14.3%
$500k-$999k
$1mn
0
5
10
20
25
15
Mixed 73.5%
Total
8
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