The UK government’s start-up rescue fund has been live one month and approved £236.2m worth of Convertible Loan Agreements.
The Future Fund has approved £236.2m worth of Convertible Loan Agreements to 252 firms since its 20 May launch, according to data released by the British Business Bank.
Of this, nearly half (45 per cent) of funding went to firms outside London. Four out of five firms' (80 per cent) management teams are mixed gender and one in two (50 per cent) management teams are mixed ethnicity.
The Future Fund, which opened for applications on 20 May 2020, is a £500m pot of cash launched by the UK government to help start-ups suffering through the COVID-19 crisis. Half of the cash is provided by the Treasury - via the British Business Bank and half from private investors with all funding provided on a matched basis.
In total, in the first month of operation, there were 623 applications with successful grants taking a minimum of 21 days from initial application to funding being awarded.
Keith Morgan, CEO, British Business Bank says the Future Fund is playing an important role in providing funding for innovative businesses across the UK that are unable to access other forms of funding.
“While the scheme was not set up to address wider well-known structural issues in the UK’s equity finance market for smaller businesses, I’m delighted to see this early evidence of the diversity in the management teams of the Future Fund companies. I am also extremely pleased to see so many venture capital firms and angel groups have become signatories to the Investing in Women Code, alongside the Future Fund.”
Government has said it will keep the size of the scheme under review and consider increasing it if needed.