New £375m scheme to boost investment in innovative businesses of the future opens applications
£375m Future Fund: Breakthrough opens up applications to help high-growth, R&D-intensive companies bring game-changing technologies to market
The government will co-invest with private investors to help scale up innovations in UK industries, including life sciences and cleantech, boosting the economy and creating jobs
Chancellor Rishi Sunak will convene a landmark Treasury Connect conference in London later this year to bring together the CEOs of the UK’s biggest tech companies and investors.
Under the UK-wide Future Fund: Breakthrough scheme, the government will commit £375 million in funding to fast-growing companies looking to raise at least £30 million in investment. To be eligible, companies must have committed 70% of an investment round to private investors with a track record of funding innovative businesses – such as venture capitalists.
The program will cover the UK’s world-class industries, including life sciences, quantum computing and cleantech, and accelerate the deployment of game-changing innovations that could solve some of society’s biggest challenges – from the development of lifesaving new medicines to the technologies that support the UK’s transition to net zero. It’s part of the government’s multi-billion pound investment in research and development to help build a future economy, create skilled jobs and cement the UK’s status as a science superpower.
Additionally, Chancellor Rishi Sunak announced today that he will host a Treasury Connect technology conference in east London in September to bring together CEOs and senior executives from the UK’s biggest technology companies and investors.
Chancellor of the Exchequer Rishi Sunak said:
Our Future Fund: A ground-breaking scheme will give innovative companies from all over the UK access to the funding they need to grow and bring their transformational technologies to market, while creating high-skilled jobs and boosting the economy as part of our Works plan.
Technology and innovation will be at the heart of our future economy, which is why we are investing billions in R&D to strengthen our status as a world leader in this field.
Above all, our investment will encourage collaboration between our most ambitious entrepreneurs and private investors, helping to commercialize breakthrough products such as new medicines and green technologies that could change our lives for the better – while creating highly skilled jobs. which help to energize the United Kingdom. economy.
Business Secretary Kwasi Kwarteng said:
The support we have provided over the past year is not only helping businesses survive the pandemic, but also boosting growth and the jobs of tomorrow, making the UK a global driver of innovation.
The original Future Fund was a huge success in helping cutting-edge companies get the fuel they need to really move forward, and we’re building on that with the new Future Fund: Breakthrough.
Due to high research and development costs, advanced technology companies typically require more capital over longer periods of time than other companies to bring their products to market.
The UK’s most innovative companies are key drivers of future growth and it is estimated that 1% growth in these companies could grow the UK economy by £38 billion.
In March 2020, the government introduced the Future Fund which successfully supported the high growth sector during the pandemic so that its potential was not overpowered. This program has provided more than £1 billion in convertible loans to 1,190 businesses to help them through the pandemic.
The government is supporting innovative businesses through the Plan for Growth, which includes the Future Fund: Breakthrough, the next innovation strategy and £14.9bn of research and development spending, the highest level since four decades.
Future Fund: Breakthrough was announced during Budget 2021 and will be implemented by the government’s British Business Bank, through its subsidiary British Patient Capital. The government has already committed over £1.3bn to a growing portfolio of over 500 high-growth innovative companies through British Patient Capital
It will be open to applications on a rolling basis for R&D-intensive companies with well-established UK operations.
For more information on eligibility and criteria, please see British Business Bank
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 facing innovative, equity-backed UK businesses due to Covid- 19
Future Fund: Breakthrough will ask leading investors to sign the Treasury’s Women’s Investing Code, which commits companies to improving women entrepreneurs’ access to tools, resources and financing
During the pandemic, the Chancellor has facilitated over £2bn of investment through the Future Fund to ensure high-growth businesses are not adversely affected by the pandemic under the £350bn plan sterling for employment
As announced in the March budget, our innovation strategy will set out the steps the government will take to boost innovation in the UK
Public R&D spending from 2021 to 2022 stands at £14.9bn, its highest level in four decades, demonstrating progress towards our target of increasing total public and private R&D investment to 2, 4% of gross domestic product (GDP) by 2027
We are investing more money than ever in basic research, in line with the announcement made during the spending review in November 2020 that the government will increase investment in basic research funded by UKRI and the National Academy of over £1 billion by 2023 to 2024.
To put it all together, we are doubling public funding for R&D to £22bn so UK scientists have access to more funding than ever before.