On 20 April 2020 government announced that it is to establish a new Future Fund scheme to support the UK’s innovative businesses currently affected by Covid-19. Innovative businesses have been unable to access other government business financial support programmes, because they are either pre-revenue or pre-profit and typically rely on equity investment.
The Future Fund scheme will deliver an initial commitment of £250m of new government funding which will be unlocked by private investment on a match funded basis.
To be eligible for the scheme, the applicant must have raised at least £250,000 in equity from third party investors in the past five years. If eligible, government will provide funding of between £125,000 and £5m with private investors at least matching the government’s commitment.
The scheme, which will be developed in partnership with the British Business Bank with the intention of launching for applications in May 2020, will initially be open until the end of September 2020.
Over the coming weeks the British Business Bank will work with government on the details on how the Future Fund will operate and how to apply for the scheme.