Future Fund was released by the Government as a means of providing cash to innovative UK start-ups. Early-stage, high growth businesses have been able to apply for a convertible loan of between £125,000 and £5 million to help them through the coronavirus outbreak since the scheme opened in May.
Initially the Government made £250 million available to support innovative companies, but also made clear at the time that the amount could be increased if required. To date, more than 320 million companies have benefitted from £320 million of Future Fund support.
A key change has now been announced to the eligibility criteria for the scheme; UK companies that have participated in non-domestic accelerator programmes, where they were required to have parent companies outside of the UK, are now able to apply for the funding. Previously, the fund required companies to have a UK parent company.
The Government has explained that the relaxation of the rules is in an effort to support the innovators and risk-takers that will be key to helping restart the economy.
It is important to note that companies will still be required to meet the ‘substantive economic presence’ tests (that half or more employees are UK-based and/or half or more revenues are from UK sales).
In our original assessment of the Future Fund we explained that the eligibility criteria for the fund was restrictive and so this is a welcome relaxation of some of the conditions. For our article with full details of Future Fund, please click here.
If you would like to discuss your innovative company and options for funding or other support, please get in touch with one of the Hazlewoods Innovation and Technology team.