What exactly is Level39?
“Level39 is a subsidised space, provided at lower cost than normal, and it does two things. It’s an incubator, because we have desks for start-ups, and it’s an accelerator space, because we have a dedicated area where we run accelerator programmes. These usually involve a sponsor and a competition to find six or seven young companies, which are put through a 6-week, 8-week or 12-week intensive accelerator programme to help get them going.”
“Young businesses go through mentoring here, in order to solve many of the initial problems that they face.”
How busy have you been?
“Since opening in March, we have had over 450 inquiries and accepted 66 as members. For us to be able to help companies, they have to be of a certain shape and at a certain stage: young companies that come with a prototype, or something that we can look at and work with them on. We are not really for the pure start-ups: we are for the ‘when-you-are-ready-to-grow’ phase. Not quite an SME, but post-start-up.”
What sectors do you focus on?
“We are very focused on financial technology, naturally, because we are located right here in Canary Wharf and can connect to companies, like banks, that want to use the technology. We are also focused on retail technology, because Canary Wharf has three great retail shopping malls that can be used for conducting pilots and acquiring first customers. And smart city technology, because as we redevelop Wood Wharf, we will be looking for technologies that we can incorporate.
“So in each of our sectors, we represent a huge value-add for companies, to help create initial traction for them.”
Who owns Level39?
“Level39 is owned by Canary Wharf Group (CWG). The goal for CGW is to help encourage high growth technology companies that will become very successful, in this local area. It’s a serious, long-term investment by CWG – the largest accelerator space in Europe.
“CWG is a builder of a community and of a city, but it is also a property company. If you have fast-growing companies as your tenants, then they might become tenants elsewhere in the estate. If the start-ups are successful, so will CWG be: it’s a nice alignment.”
Does CWG take equity in Level39 member companies?
“At the moment, we don’t invest in the companies themselves, and we don’t require any equity for companies to participate in our programmes – we get sponsors to pay for that. It’s a neutral territory.”
What happens after Level39?
“When companies grow up, reaching 6 or 8 people in size , they can graduate to the 42nd floor – Level42 – where our high growth companies sit. We opened Level42 only two months ago. So far, it has received 4 companies and we are in discussions with about 11.
“This is interesting for the investor community: they get to know companies at an early stage, through our mentoring programme, and they can track their growth. The best thing an investor can do is to come and help these companies, because then they learn about their strengths and weaknesses and opportunities, and it’s also good for the companies, because then they find out who might be able help them the most.”
What other plans do you have?
“We are working to encourage investors to think about this area as a hub for investors. To this end, we are launching Club Lounge Level39, a private members club primarily targeting the venture capital and angel investor community.
“Many investors are international travellers and doing business in hotels and Starbucks, which is fine. But this will give them a base, with private meeting rooms, where they can have meals. A place where they can hang out and exchange ideas or deals. A place where, unusually for a British club, it’s OK to do a bit of work!”