The Future Fund, announced by the Chancellor of the Exchequer on 20 April, will open for applications from Wednesday 20 May. The Future Fund uses an online platform for applications, which today publishes its set of standard terms and eligibility criteria for borrowers, investors and solicitors to view in advance of Wednesday’s launch.
The new Future Fund, delivered by the British Business Bank, is meant to support innovative UK companies with good potential, that are essential in ensuring the UK retains its leading position in science, innovation and technology. These companies 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. The financing supports companies facing a significantly extended length of time between funding rounds, due to the impact of the current economic situation.
How it works:
- Open for applications from Wednesday 20thMay.
- Scheme operates on a commercial basis to deliver an initial commitment of £250m of new government funding.
- Financing will be unlocked by additional third-party investment on a match funded basis.
- Applications submitted via an online platform based on a set of standard terms and eligibility criteria.
- Companies must be UK-incorporated and if part of a corporate group, only the parent company is eligible.
- Companies in receipt of the loans will be required to have previously raised at least £250k in equity investment from third party investors in the last five years.
- Only eligible companies that can attract at least 50% of third-party investment will receive funding.
- Companies cannot have any of their shares traded on a regulated market, multilateral trading facility or other listing venue.
- The company must have been incorporated on or before 31st December 2019.
- At least one of the following must be true for the company:
- Half or more employees are UK based;
- Half or more revenues are from UK sales.