In an effort to boost UK as a startup hotspot, Rackspace has announced that it will provide selected business startups to be beneficiaries of £12,000 worth of cloud resources (similar to their activities in the US). Through the Rackspace Startup Program, the company has agreed to offer new and emerging businesses with free cloud computing resources in the United Kingdom. The program will be launched in 2013 in partnership with British accelerators and incubators in order to determine which local companies will receive the free resources.
The Rackspace Startup Program is currently being implemented in Australia and the United States of America. It expects to benefit at least 850 emerging businesses in the UK. Rackspace chairman Graham Weston is very enthusiastic about the London program. Sometime in August, UK Chancellor George Osborne was quoted as saying that London is becoming an investment hub for startups. Vodafone already has an incubation center there. Barclays is also laying the groundwork for the company’s collaboration with emerging businesses. Rackspace, for its part, has already talked with British accelerators and will soon work with Springboard and DreamStake.
A recent survey showed that London is being considered the 7th best place for startup companies. According to Telefonica, a telecoms firm, the United Kingdom won’t be the US’s version of Silicon Valley because its investment culture is risk-averse and it lacks investment. That’s why the Rackspace plan is perfect to launch UK as a startup hotspot.
In a related development, the UK government has announced in September that it will loosen the system on how companies list on the stock market. This plan was received warmly by various investment firms as it will provide a fresh start for initial public offering. It is expected that by 2013 companies like Wonga and Mind Candy will be primarily IPO candidates.