UK Government announces support for later-stage, fast-growing tech companies with the launch of new £375 million fund

Friday 9th April, 2021

A new scheme from the Government’s Future Fund will launch this summer, ‘Future Fund: Breakthrough’. The size of the new fund is set at an initial £375 million (although, as with the original Future Fund scheme, we would expect it may be increased if the scheme proves a success) and the scheme will again encourage private investors to co-invest with the Government in high-growth, innovative companies.

Future Fund: Breakthrough will be delivered by the British Business Bank via its commercial subsidiary British Patient Capital, and will be open to UK based companies with “significant UK operations” that are focussed on research and development. The minimum size of investment round for participation in the scheme has been set at £20 million. The British Business Bank is yet to confirm how much it will invest in each company.

Future Fund: Breakthrough follows the success of the original Government-backed Future Fund scheme, which launched in May 2020 and closed in March this year. Under the original Future Fund scheme, the Government provided convertible loans to UK-based companies facing financing difficulties due to the coronavirus outbreak ranging from £125,000 to £5 million, subject to at least equally matched funding from private investors. By contrast, Future Fund: Breakthrough appears to be aimed at later stage investments and larger companies. In its announcement, the British Business Bank specifically indicated its intention to support companies that help “accelerate the deployment of breakthrough technologies which can transform major industries, develop new medicines, and support the UK transition to a net zero economy.”

We will provide further information on the Future Fund: Breakthrough scheme when available.

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