The UK Government's £250 million Future Fund to support innovative companies opens for applications on 20 May.
Announced by the Chancellor on 20 April, it issues convertible loans to innovative UK companies with good potential, that typically rely on equity investment and are currently affected by Covid-19.
The scheme, will help these companies through the current period of economic disruption and the recovery, so they are able to continue their growth trajectory and reach their full economic potential.
The scheme is delivered by the British Business Bank.
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.
Operating on a commercial basis, the Future Fund will deliver an initial commitment of £250 million 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.
The Future Fund uses an online platform based on a recognised financial instrument, and a set of standard terms with published criteria. This allows investors to provide rapid support to the companies where they see good potential. Importantly, it provides a clear, efficient way to make funding available as widely and as swiftly as possible without the need for lengthy negotiations. The process is investor-led and the platform does not match companies seeking funding with investors.
For further information on eligibility criteria and how to apply, see the British Business Bank website.
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