What is the Future Fund scheme, who is it for and will my company be eligible?
The Future Fund has been created to support innovative companies that have been affected by COVID-19 and unable to take advantage of the the other support programmes including CBILS.
This may be because they are pre-revenue, pre-profit and will be typically relying on equity investment.
The Future Fund scheme will deliver at least £250 million of government funding which will need to be matched by private investment.
The minimum loan amount per company is £125,000, the maximum £5 million.
Like CBILS this scheme is being developed in partnership with the British Business Bank. Companies will be able to apply in May 2020 and the scheme will run until 30th September 2020. The maximum term the loan is three years.
The government is still working with the BBB to work out the final details of how the scheme will operate.
Is my company eligible for a Future Fund loan?
Your company must be unlisted and registered in the UK. It will have previously raised at least £250,000 in previous capital raising rounds and should have a substantial economic presence in the UK.
What can we use the loan for?
Strictly working capital purposes only.
What’s the deal?
The funding shall automatically convert into equity on the company’s next qualifying funding round at a minimum conversion discount of 20% – or at a higher rate as agreed between the company and is matched investors. The government will receive 8 per cent interest on the loan, non-compounding, or a higher amount if agreed with matching investors.
Can you help me apply for this loan?
It hasn’t been launched quite yet, however if you are interested, please complete the form below and we’ll send you the latest detailed information on the Future Fund.