‘Future Fund’ for High Growth Digital + Technology Businesses

The British government has at last recognised that UK start-ups have been unable to access any Coronavirus related support and have now unveiled plans for a new “Future Fund” designed to ensure high-growth companies across the U.K. receive enough investment to remain viable during the coronavirus crisis.

Initially, the U.K. government is pledging a total of £250 million of taxpayer’s money to the new fund (delivered via the British Business Bank). To unlock the investment — which is in the form of a convertible loan note — businesses must secure an equal or greater amount of match funding from private investors. The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million.

Although smaller start-ups still looking for their first investment will be unable to access the funding this is at least recognition of the sectors importance and that it is generally outside of main-stream banking support in the form of CBILS.


The fund applies to businesses if:

  • your business is based in the UK
  • your business can attract the equivalent match funding from third party private investors and institutions
  • your business has previously raised at least £250,000 in equity investment from third party investors in the last 5 years

Full eligibility criteria will continue to be updated before it fully launches in May and will remain open until September

Key Features

The minimum amount of the loan provided by the Government to the company shall be £125,000. The maximum amount of any such Government loan shall be £5,000,000.

The government loan shall constitute no more than 50% of the bridge funding being provided to the company.

The bridge funding shall be used solely for working capital purposes and shall not be used by the company to repay any borrowings.

The bridge funding shall automatically convert into equity on the company’s next qualifying funding round at a minimum conversion discount of 20% (the “Discount Rate”) to the price set by that funding round.

On a conversion event, the loan shall convert into the most senior class of shares in the company.

The Government shall receive a minimum of 8% per annum (non-compounding) interest to be paid on maturity of the loan

The loan shall mature after a maximum of 36 months.For a full understanding please access full government information here.


For further information please contact Partner, Simon Palmer at spalmer@garbutt-elliott.co.uk.