What is it?
Implemented in April and recently extended until 31st January 2021, the Government’s COVID-19 economic response strategy is a collaborative investment fund focussed on high-growth venture-capital-backed businesses. This fund will match capital invested in such businesses from private sector institutions with state-backed loans.
Termed the ‘Future Fund’, the government has allocated £250m to the initiative which will see convertible loans of between £125,000 and £5m placed alongside the private investors’ capital into qualifying businesses.
Do you qualify?
To qualify, a summary of eligibility criteria has been published with at least the following criteria needed to be met to apply:
- The business is based in the UK
- The business can attract the equivalent match funding from third party private investors and institutions
- The business has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years
Importantly, a business does not have to show impact by COVID-19 in order to be eligible.
How does it support businesses?
The aim of the Future Fund is to address the concerns that companies in the early stages of growth are often overlooked by traditional lenders (even as part of the CBILS scheme) due to a lack of profitable trading history and sufficient balance sheet capacity, despite whether that is part of a longer-term growth strategy.
The scheme, which was launched in partnership with the British Business Bank, will now run until January 2021 and could prove a crucial lifeline to those promising young and innovative businesses which we expect to contribute significantly to the overall economic advancement of the UK in the year to come.
Receive further Future Fund support...
If you think that your business is eligible for the Future Fund, get in touch to receive the more detailed Headline Term Sheet and understand how to apply.