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More firms can now benefit from the Future Fund

Tuesday June 30th, 2020

More start-ups and innovative firms will be able to apply for investment from the government’s Future Fund from today (Tuesday 30 June).Funding

companies which have participated in accelerator programmes now eligible for the popular scheme

more than 320 early-stage, high-growth firms have so far benefitted from £320 million of support through the Fund

this surpasses the £250 million initial funding made available by the government

Changes to the scheme’s eligibility criteria will mean that UK companies who have participated in highly selective accelerator programmes and were required, as part of that programme, to have parent companies outside of the UK will now be able to apply for investment.

To date, more than 320 companies have benefitted from £320 million of Future Fund support. Under the scheme, early-stage, high-growth businesses from a diverse range of sectors can apply for a convertible loan of between £125,000 and £5 million to help them through the Coronavirus outbreak.

Initially, £250 million was made available by the government under the Fund, 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 has been made available, with around £320 million having now been invested. The scale of the scheme will be kept under review.

Accelerator programmes, such as TechStars or Y-Combinator, give businesses access to finance, mentorship and expert networks.

Participants in accelerator programmes are often required to set up a non-UK parent company in order to participate which means some did not meet the Future Fund criteria of having a UK parent company when it opened for applications in May.

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