The Future Fund – Lifeline for UK Start-Ups
What is the scheme?
The UK Government has unveiled plans for a new co-investment fund titled the ‘Future Fund’ designed to ensure venture capital backed companies across the UK receive enough investment to remain viable during the coronavirus crisis. The Future Fund will launch in May 2020 and will remain open until the end of September 2020 – with the aim of providing government backed convertible loans to UK based companies ranging from £125,000 to £5 million.
These convertible loans may be a suitable option for companies that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme. These loans will need to be repaid by the company after 3 years or converted into equity stakes in the company – these are commonly referred to as ‘convertible loan notes’.
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