UK government announces Future Fund: Breakthrough
The UK government today announced the formation of Future Fund: Breakthrough, a new £ 375million fund for tech start-ups
Funding will focus on companies that take advantage of emerging technologies, develop new drugs, and help transition to a net zero economy.
The Future Fund: Breakthrough, to be facilitated by British Patient Capital, a subsidiary of the British Business Bank, will seek to encourage private investors to co-invest with the government in innovative, high-growth start-ups, with a focus on R&D intensive companies.
The government funding scheme, which was mentioned in Chancellor Rishi Sunak’s Spring Budget, will seek to help start-ups that accelerate the deployment of cutting-edge technologies, develop new drugs and support the UK’s transition to a net zero saving.
There will be a minimum total investment round of £ 30million, applicant companies must have raised at least £ 5million in previous funding rounds and applications must be filed by a lead investor.
This program will act as a separate program from the Future Fund, which has addressed the funding challenges faced by UK start-ups due to Covid-19, and is now closed to new applicants.
Commenting on the launch, Tech Nation CEO Gerard Grech said: “As the potential of technologies such as AI, machine learning and quantum computing is fully realized and applied at scale, funding of R&D is more important than ever to transform the UK’s next generation of innovators. into game-changing market leaders.
“The funds focused specifically on R&D intensive companies aligned with strategic UK sectors, including net zero companies, will help address some of the biggest challenges facing society today.
“This will open up new job opportunities, stimulate economic growth and consolidate UK Tech as a global leader.”
The government is also set to introduce a broader set of measures to increase competition, including new technology visas to attract talent to the UK, and a ‘digital markets unit’ to reduce the dominance of large US companies like Google and Apple, and open up the UK small business market.
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A crucial period for start-ups
As Britain’s tech sector seeks to recover from the unprecedented economic downturn at the onset of the pandemic, Patrik Backman, CEO and general partner of venture capital firm OpenOcean, believes Future Fund: Breakthrough comes at a critical time for start-ups across the country.
He said: “This £ 375million support fund will help restore confidence and increase the chances of start-ups catching the attention of investors.
“The success of Future Fund Breakthrough will be based on transparency. In order to provide truly impactful support to the industry and gain the trust of start-ups, the government will need to be rigorous in ensuring that a fair process is followed, with clarity on eligibility, requirements. application and open disclosure of selected companies. .
“Many in the venture capital community will welcome the UK government’s partnership with funds on their investments, helping to strengthen support for innovative start-ups and help them maximize their potential. However, it will be crucial for the government to cooperate closely with investors on this journey, ensuring that the rights of private investors are respected.
“The companies that best capture the attention of government and investors will be those that can match a founder’s bold and ambitious vision, with a clear and sustainable roadmap to successfully chart a course in the post-world world. pandemic. “
More information regarding the Future Fund: Breakthrough application, managed by British Patient Capital, can be found here.