Good news for innovators and startups with the announcement of the Government’s new Future Fund.
What is the Government’s Coronavirus Future Fund?
This fund is designed for businesses that rely on equity investment to fund their business and are unable to access the Coronavirus Business Interruption Loan Scheme.
If you’re struggling due to Coronavirus – and meet the criteria - the Government will match equity investments with a convertible loan of between £125,000 and £5 million.
What is a convertible loan?
A convertible loan is a loan that is issued in exchange for an equity share in a business.
But, unlike a straightforward equity investment from an angel investor or venture capitalist, the loan will accrue interest and have a maturity date.
The maturity date is when the loan converts into a share of your business. Usually when your business's valuation is higher.
Unlike an equity investment from a venture capitalist, a convertible loan does not afford the lender any say in the direction of your business.
When will the Government’s Coronavirus Future Fund be launched?
It will be launched in May 2020 and delivered in partnership with the British Business Bank.
Am I eligible for the Government’s Coronavirus Future Fund?
You’re eligible if your business:
- is based in the UK
- can attract the equivalent match funding from third-party private investors and institutions
- has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years
Full eligibility criteria will be published shortly on the Government website.
How do I apply to the Government’s Coronavirus Future Fund?
The Future Fund will launch in May 2020. Further details about this scheme will be published shortly on the Government website.
Find out more on the Future Fund page of the Government website.