The Future Fund, a new co-investment fund for high growth companies went live today on 20 May 2020. This is a new government backed scheme that aims to support innovative UK companies that are facing financial difficulties due to the ongoing COVID-19 pandemic. This scheme is intended to support companies that are either pre-revenue or pre-profit and typically rely on equity investment.
Under the terms of the Future Fund, convertible loan notes of between £125,000 and £5 million will be issued by the government, subject to various eligibility criteria including a requirement for matched funding from private investors. More details surrounding the eligibility criteria for the scheme and how it works can be found here. The government will initially make up to £250 million available under the scheme, although this will be kept under review.
There are a number of updates to the scheme surrounding eligibility criteria. These include the requirement that the company must have been incorporated on or before 31 December 2019, and that the company must either have half or more employees based in the UK or half or more revenues from UK sales. In addition, the Future Fund website has now published detailed information in relation to the scheme for both investors and solicitors which can be found here.
Please get in touch if you would like further details or assistance with your finance requirements.