The Sussex Innovation Centre (Sinc) is laying the foundations for a successful 2002 by starting construction of its Phase 2 extension at the Falmer university campus.

The extension will double the capacity of the centre to about 40,000sqft and enable Sinc to accommodate more than 50 companies, compared to about 30 at present.

Due to be completed in November, it will provide bigger offices for new businesses and companies which have outgrown the original building.

Executive director Mike Herd said: "We see about 150 companies each year and, of these, about ten are taken into the centre as ten leave."

Most of the companies are at a very early stage, usually within their first year of trading, when they become tenants.

Sinc can also support new ventures from existing companies and help businesses not based at the centre.

Mr Herd said during the past year many companies had been developing new technologies to underpin future product launches.

He said: "In part, this innovation reflects decisions the centre has made in terms of which new companies we bring in.

"As we have got more stable and better at raising capital, we can afford to take-in higher-risk ventures and encourage more innovation."

In many cases, Sinc takes a small stake in these companies, which offsets support costs and helps the centre to fund other business opportunities.

Mr Herd said 2001 had been a good year for Sinc-based companies, despite the turbulent economy.

He expected total revenue to be about £20 million, from £16 million in 2000 and £11.7 million the year before.

Mr Herd said: "There has been a downturn in internet-related business but those companies at the centre have strong product-based portfolios and are surviving."

Many Brighton companies had adopted a more sustainable model of new business than those in other regions, most notably London, which had been dominated by internet incubators focused on a quick return on capital expenditure.

He said: "Our emphasis is on building businesses rather than building revenue. It is quite a traditional growth model, based on building a strong customer base.

"In many cases, companies don't need large amounts of money. They just need resources to help stimulate growth."

The centre had also announced a virtual business network, Sincnet, to concentrate its links and resources into a single entity.

Mr Herd said: "When companies are starting out there are a whole batch of things they need to know.

"We have not got the time to help every business which approaches us, so Sincnet will provide links to support agencies, professional firms and university research groups, as well as encouraging collaborations between local companies."

The new Brighton and Hove Enterprise Hub, a joint venture between Sinc and Wired Sussex, should help identify the key growth businesses in the city and tailor support networks to allow them to achieve their potential.

Although Mr Herd hoped all Sinc-based companies would perform strongly this year, he picked out internet learning business Exam on Demand, document handling experts TFO, off-the-shelf web site designers E-Velocity and security specialists Sigmer and i-sec to perform strongly.

He said helping companies to create a market for their products by raising awareness among local customers and suppliers was essential for growth, as was publicising the "hidden talent" in the Sussex technology and new media communities.

Many successful local business people were happy to mentor inexperienced entrepreneurs once they were aware of them.

Two recent investment events had created interest in local companies and raised about £500,000.

www.sinc.co.uk
www.examondemand.co.uk
www.taouk.com
www.e-velocity.co.uk
www.sigmer.co.uk/sigmer
www.i-sectesting.com