On 20th July 2021 the government opened a new £375 million scheme to drive investment in innovative firms of the future. The funding was first announced in the Budget Statement 2021. The £375 million Future Fund: Breakthrough scheme is a co-investment program “designed to super charge the UK’s post-pandemic economy” by encouraging private investors to co-invest in UK high-growth, innovative companies.
It aims to support fast growth firms with applicants needing to have demonstrated a track record by having already secured and least £5m in funding without state help and to apply they need to be seeking to raise at least £30 million and have a lead funder to make the application.
“The Treasury will favour industries such as quantum computing, life sciences and clean technology, in an effort to spur breakthroughs that can ‘solve some of society’s greatest challenges’.”
The fund is managed by the British Business Bank’s subsidiary, British Patient Capital. It says the fund is to support companies with “breakthrough technologies which have the potential to transform major industries, develop new medicines, support the transition to a net zero economy and strengthen the UK’s position as a science superpower”.
While this is good news for growing companies, a strong support framework is also needed for early stage companies, engaged in Research and Development, as many face significant challenges getting to the point where this fund could be relevant.
The Research and Development tax relief schemes are valuable in this respect and it’s good to see that each year more companies are making R&D claims.
Blog by Linda Eziquiel, Regional Director, RandDTax