Ministers launch 'Future Fund' to boost innovative R&D businesses
The Government has announced the opening of the ‘Future Fund: Breakthrough’ funding programme, designed to boost the UK’s post-pandemic economy. The funding will be provided to the country’s most high growth, innovative and R&D-intensive companies. These firms are essential to propelling the UK’s economy forward, and it is estimated that 1% growth in these firms could grow the UK economy by £38 billion.
The funding push was announced at Budget 2021, and will be delivered by the Government’s British Business Bank, via its subsidiary British Patient Capital. The Government has already committed over £1.3bn to a growing portfolio of now over 500 high-growth innovative firms through British Patient Capital. In regards to eligibility, businesses must have commitments of 70% of an investment round from private investors with a track record of financing innovative companies - such as venture capitalists.
The scheme will span the UK’s world class industries, including the life sciences sector, clean technology and quantum computing. Future Fund: Breakthrough is separate from the Government’s Future Fund, now closed to new applications, which was launched in April 2020 to address the immediate funding challenge that innovative, equity backed, UK companies faced due to COVID-19
Along with this Future Fund, Chancellor of the Exchequer Rishi Sunak announced this week that a Treasury Connect tech conference will be hosted by him in September. This will bring together the CEOs and senior leaders of the UK’s biggest tech firms and investors.
The Future Fund: Breakthrough scheme will enable “innovative businesses in every corner of the UK to access the finance they need to scale up and bring their transformational technologies to market - all while creating high-skilled jobs and boosting the economy as part of our Plan for Jobs”, said Chancellor Rishi Sunak.