New Future Fund to support innovative UK businesses
Tuesday May 19th, 2020
The Future Fund, announced by the Chancellor of the Exchequer on 20 April, has opened for applications. The Future Fund uses an online platform for applications, which has a set of standard terms and eligibility criteria for borrowers, investors and solicitors to view in advance of Wednesday’s launch.
In parallel, the full Convertible Loan Agreement upon which all terms for a Future Fund investment are based, has been published by the Treasury.
The new Future Fund will support innovative UK companies with good potential, that are essential in ensuring the UK retains its world leading position in science, innovation and technology. These companies typically rely on equity investment and are currently affected by Covid-19.
Until now these companies have been unable to access other government business support programmes because they are either pre-revenue or pre-profit. The financing supports companies facing a significantly extended length of time between funding rounds, due to the impact of the current economic situation.
Developed by government and delivered by the British Business Bank, the Future Fund will help these companies through the current period of economic disruption and recovery, so they are able to continue their growth trajectory and reach their full economic potential.
Operating on a commercial basis, the Future Fund will deliver an initial commitment of £250m of new government funding which will be unlocked by additional third-party investment on a match funded basis, creating a bridge to the next equity funding round for innovative companies with good potential.
To find out more about the Future Fund, head to the British Business Bank website.