The Future Fund: Breakthrough scheme, which is replacing the closed (to new applications) Future Fund scheme, will open in the UK around the start of summer.
According to recent figures, the Future Fund presented more than £1.1 billion in adaptable loans to over 1,140 applicants.
This new scheme will cost £375 million and strives to support private investment in high-growth innovative firms in response to the coronavirus pandemic.
The UK’s state-owned economic development bank, the British Business Bank (BBB), revealed that the scheme aims to help private investors co-invest in Research and Development (R&D) businesses. The other investor being the UK Government.
Companies must be seeking a minimum of £20 million investment. These businesses are either pre-revenue or pre-profit, which is why they are usually unable to access other Government-backed loans, such as the Bounce Bank Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS).
A spokesperson for the BBB states that this new scheme aims to “accelerate the deployment of breakthrough technologies which can transform major industries.
“Due to high research and development costs, breakthrough technology companies typically require more capital than other technology companies to fuel the later stages of their growth.
“Future Fund: Breakthrough will crowd in private sector investment to support the growth of the companies.”
To find out more about this scheme, contact our experts today.