Companies in Telford can now apply for a convertible loan of between £125,000 and £5 million, to support continued growth and innovation in sectors as diverse as technology, life sciences and the creative industries.
The government has made an initial £250 million available for investment through the Future Fund scheme and will consider increasing this if needed. Private investors – potentially including venture capital funds, angel investors and those backed by regional funds - will at least match the government investment in these companies. Match fund investors will be encouraged to sign the Treasury’s Investing in Women Code, which commits firms to improving female entrepreneurs’ access to tools, resources and finance. The Future Fund is a signatory of this.
The government will also amend the rules of the Enterprise Investment Scheme, which provides tax relief to investors in high growth firms, to protect Future Fund investors from losing relief on their previous investments made prior to any investment through the Future Fund.
The Fund will be open until September and is delivered in partnership with the British Business Bank.
In addition to the Future Fund, Ministers have allocated £40 million through the Fast Start Competition to drive forward new technological advances, and to support innovative start-ups, including a virtual-reality surgical training simulator and an online farmers’ market platform. This will give companies a vital boost, fast-tracking the development of innovations borne out of the coronavirus crisis.
Oliver Dowden MP, Secretary of State for DCMS said:
The UK is a global tech and creative hub. We are an unashamedly pro-tech government and are supporting high-growth businesses through this challenging period, so they can prosper and succeed.
“The tech sector has played a crucial role throughout the pandemic and these innovative firms will be key to driving growth through our recovery.”
Alok Sharma, Secretary of State for Business said:
“Britain is an innovation powerhouse and helping our cutting-edge companies of the future get the cash they need during this difficult time is a vital part of getting the UK economy up and running again.”