Wayra, Spain-based telecom company Telefónica’s accelerator network, has started a program in the UK targeting entrepreneurs tackling areas where people on low incomes pay more for some goods and services.
Wayra Fair By Design will support seven startups per year, falling into four broad areas: energy, finance, insurance and costs imposed due to someone’s geographical residence.
Startups can gain up to £70,000 ($85,000) in cash and services and co-working space at the Open Future North building in Oldham, Greater Manchester.
Gary Stewart, director of Wayra UK, said: “It should not cost more to be poor. An entrepreneur’s central task is to offer a compelling, sustainable solution to big problems, and we can think of fewer problems bigger or more worthy of a solution than this one. We are eager to work with startups to make real progress in the battle against inequality.”
Fair By Design Fund has also raised £8m from a partnership between financial institution Big Society Capital, social policy research charity the Joseph Rowntree Foundation, investment fund manager Finance Birmingham and VC firm Ascension Ventures to target those types of “poverty premium” startups.