Future Fund Update

June 30th 2020

The Chancellor of the Exchequer has announced an amendment to the Future Fund that will allow businesses that contribute significantly to the UK economy, but that do not have their parent company based in the UK because they participated in a non-UK based accelerator programme, to apply to the scheme.

Accelerators are open and competitive programmes which are designed to select and foster the stars of tomorrow. They are selective, have a fixed-term and are a cohort-based programme for early stage companies, offering access to industry mentorship, seed or venture capital and other professional support. Part of the conditions of joining some accelerator programmes outside of the UK is that the businesses are required to create a non-UK incorporated parent company.

These changes to eligibility will allow a wider number of suitable companies to apply, while maintaining scheme protections against fraud and abuse and ensuring that the Future Fund continues to support economic activity in the UK.

For more information on eligibility criteria and how to apply, you can visit the Future Fund webpages here. You can also read the press release announcing the update here.

Developed by government and delivered by the British Business Bank, the Future Fund launched in May and will initially be open until the end of September. As at 28 June, the Future Fund has approved over £320.6m of convertible loans to 322 innovative businesses across the UK.

The Future Fund is designed to support innovative UK companies with good potential, that 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.

Initially, £250 million was made available by the government for investment through the scheme, to be matched by private investors, with the Treasury making clear the amount could be increased if needed. Due to the popularity of the Fund, more funding is being made available. The scale of the scheme will be kept under review.