Plans have been announced by the government to help high growth companies navigate the challenges posed by COVID-19. This is in the shape of the Future Fund. We are still awaiting key details of this support but have outlined in this article what we now understand and who may benefit.
What Is The Coronavirus Future Fund?
Working with the British Business Bank, the UK government have committed £250 million to be invested in innovative companies who are facing financial hardship as a result of the global pandemic.
How Much Could I Receive?
The minimum investment amount per organisation is currently £125,000 with a maximum of £5 million. This will be through convertible loan notes (CLNs) and any investment through this Fund will need to be matched by the same figure attained from private investors.
Do I Qualify For The Future Fund?
The following outlined the key eligibility criteria:
· Your business is based in the UK
· You can attract the equivalent match funding from third-party private investors and institutions.
· Have previously raised at least £250,000 in equity investment from third-party investors in the last five years.
Why Include Match Funding?
Due to the high mortality rate of start up businesses, we can assume that the government require match funding as a signal of the quality of the investment. The primary purpose of the fund is to support existing businesses who have a relatively robust track record and not, unfortunately, the vast majority of start-up enterprises.
Further details are due to be released in May. If you need support in raising finance for your organisation, contact our team today.