A new £375 million finance scheme will support private investment in high-growth innovative firms, it has been announced.

Replacing the now-closed Future Fund, the ‘Future Fund: Breakthrough’ initiative will launch in early summer 2021.
According to the British Business Bank (BBB), the UK’s state-owned economic development bank, the scheme will encourage private investors to co-invest with the Government in research and development (R&D) intensive companies seeking a minimum investment of £20 million.
Introduced in response to the coronavirus pandemic, these types of companies are often unable to access government-backed business support – such as the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), or the Bounce Back Loan Scheme (BBLS) – because they are either pre-revenue or pre-profit.
Commenting on the announcement, the BBB said the scheme will “accelerate the deployment of breakthrough technologies which can transform major industries”.
“Due to high research and development costs, breakthrough technology companies typically require more capital than other technology companies to fuel the later stages of their growth,” the bank said.
“Future Fund: Breakthrough will crowd in private sector investment to support the growth of the companies.”
The latest figures suggest that the Future Fund – now closed to new applications – delivered more than £1.1 billion in convertible loans to over 1,140 applicants.
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