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Government announces £250m coronavirus Future Fund for tech startups

The government has unveiled an initial £250m Future Fund scheme, issuing convertible loans to help startups struggling due to the coronavirus outbreak. The scheme is planned to go live in May.

20th Apr 2020
Staff Writer AccountingWEB
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The Chancellor Rishi Sunak appears on the BBC's Marr Show.

This morning, the government unveiled the Future Fund – a scheme that will issue convertible loans to high-growth tech startups suffering under the current crisis.

Under the new scheme, the government plans to make an initial £250m available in convertible loans, labelled as “bridge funding”, that will be available from May to September 2020. This is part of the £500m pledged investment for high-growth firms, and in addition to another £750m for SME’s focused on R&D, totals £1.25bn government support package announced today.

The government scheme, to be delivered in partnership with the British Business Bank (BBB), comes after pressure from big UK tech startups over being left out of coronavirus lending schemes.

Earlier this month, an open letter from 12 of the UK’s biggest tech startups was published, urging the Chancellor for lending schemes to be made available to high-growth tech companies. GoCardless, Deliveroo, Graphcore and Blockchain are amongst the leading UK tech scale-ups to sign. 

Save Our Startups (SOS) initiative, which includes a number of smaller tech startups, also published an open letter to the British Government to the same effect, the week prior.

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