A new corporate finance scheme will help technology scale-ups bring new and innovative products to market, it has been revealed.
The report comes after the Future Fund: Breakthrough scheme opened for applications this week.
According to HM Treasury, the £375 million initiative will support research & development (R&D) intensive firms grow in the wake of the coronavirus pandemic by combining Government and private investment.
To be eligible for finance, businesses must have commitments of 70 per cent of an investment round from private investors – such as venture capitalists – with a “track record of financing innovative companies”. The Government will then finance the remaining 30 per cent.
The firm must be working in a breakthrough industry, such as the life sciences or clean technology sector, and be seeking at least £30 million in investment to apply.
Companies must also have raised at least £5 million in previous funding rounds and be based in the UK with “significant UK operations”.
Commenting on the scheme, Business Secretary Kwasi Kwarteng said: “The original Future Fund was a tremendous success in helping cutting-edge firms to get the fuel in the engine they need to really motor forwards, and we are building on that with the fresh Future Fund: Breakthrough scheme.”
The Chancellor of the Exchequer Rishi Sunak added: “Our Future Fund: Breakthrough scheme will enable innovative businesses in every corner of the UK to access the finance they need to scale up and bring their transformational technologies to market – all while creating high-skilled jobs and boosting the economy as part of our Plan for Jobs.”
For more information about the Future Fund: Breakthrough scheme, please click here.
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