20 Jul 2021
New £ 375million program to boost investment in innovative companies of the future is open for applications
£ 375million Future Fund: Breakthrough Opens for Apps to Help High Growth, R&D Intensive Companies Bring Breakthrough Technologies to Market
The government will co-invest with private investors to help develop innovations in UK industries, including life sciences and clean technologies, to stimulate the economy and create jobs
Chancellor Rishi Sunak will convene a landmark Treasury Connect conference in London later this year to bring together CEOs of the UK’s biggest tech companies and investors.
Under Britain’s Future Fund: Breakthrough program, the government will commit £ 375million in funding for fast-growing companies looking to raise at least £ 30million in investment. To be eligible, companies must have commitments of 70% of an investment round from private investors with a history of financing innovative businesses – such as venture capital firms.
The program will cover the UK’s world-class industries including life sciences, quantum computing and cleantech, and accelerate the deployment of breakthrough innovations that could solve some of society’s biggest challenges – from development of new life-saving drugs to technologies that support the UK’s transition to net zero. It’s part of the government’s multibillion-pound investment in research and development to help build a future economy, create skilled jobs and solidify the UK’s status as a science superpower.
In addition, 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 tech companies and investors.
Chancellor of the Exchequer Rishi Sunak said:
Our Future Fund: Breakthrough Scheme will enable innovative companies across the UK to access the finance they need to grow and bring their transformative technologies to market – while creating highly skilled jobs and stimulating economy as part of our plan for Works.
Technology and innovation will be at the heart of our future economy, which is why we are investing billions in R&D to help consolidate our status as a global 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 drugs and green technologies that could improve our lives, while creating highly skilled jobs that help 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 jobs for the future, making the UK a global powerhouse in innovation.
The original Future Fund was a huge success in helping leading edge companies get the fuel they need to really get ahead, and we’re building on that with the new Future Fund: Breakthrough Scheme.
Because of the high costs of research and development, high technology companies generally require more capital over longer periods of time than other companies to bring their products to market.
The UK’s most innovative companies are the main drivers of future growth and it is estimated that a 1% growth of 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 harnessed. This program has provided over £ 1 billion in convertible loans to 1,190 businesses to help them weather the pandemic.
The government is supporting innovative businesses through the Plan for Growth, which includes the Future Fund: Breakthrough, the Next Innovation Strategy and £ 14.9 billion in research and development spending, the highest level in four decades .
Future Fund: Breakthrough was announced in Budget 2021 and will be provided by the government’s British Business Bank, through its subsidiary British Patient Capital. The government has already committed more than £ 1.3bn to a growing portfolio of more than 500 innovative high growth companies through British Patient Capital.
It will be open for applications on an ongoing basis for R&D intensive companies with well established UK operations.
For more information on eligibility and criteria, please see the british investment 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 that innovative, private-equity UK companies were facing due to Covid- 19
Future Fund: Breakthrough will require major investors to sign the Treasury Code for Investing in Women, which commits businesses to improving women entrepreneurs’ access to tools, resources and finance
During the pandemic, the Chancellor facilitated more than £ 2bn of investment through the Future Fund to ensure high growth companies are not negatively affected by the pandemic as part of the £ 350bn plan to employment
As announced in the March budget, our innovation strategy will set out the steps the government will take to drive innovation in the UK.
Public spending on R&D from 2021 to 2022 stands at £ 14.9 billion, its highest level in four decades, demonstrating progress towards our goal of increasing public and private investment in R&D 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 expenditure review in November 2020 that the government will increase investments in basic research funded by UKRI and the National Academy by more £ 1 billion by 2023 to 2024.
To bring it all together, we are doubling public funding for R&D to £ 22 billion so UK scientists have access to more funding than ever before.