In May 2020, the Government opened its Future Fund for applications, initially making £250m available for investment. The total value of the fund rose, later, to £1.14bn The fund was designed to offer a convertible loan to UK-based companies – of between £125,000 and £5 million – to support growth and innovation throughout Covid.
But who were the companies who applied for funding – and how are they doing now?
Who are the companies backed by the Future Fund?
In total, 1,190 startups and scaleups were backed by the Future Fund, with the scheme matching funding raised from outside investors. A full list of these 1,190 businesses, however, has not been made publicly available.
By November 2021, the British Business Bank, who manage the Future Fund, had announced the names of 158 of the funding recipients. Data platform Beauhurst, however, has identified a total of 320, through press releases and Companies House data.
Their research shows that 77.1% of the companies invested in were technology/IP-based businesses, and that the biggest vertical was fintech, with 19.1% of the businesses they identified.
Despite the fund being launched for innovative startups in areas such as technology and life sciences, The Times reports that the Future Fund has been used by companies beyond the initial remit – including the Black Sheep Coffee chain.
How are Future Fund businesses performing?
In August 2022, it was reported that companies backed by the Future Fund have had mixed levels of success. While 400 of the 1,190 businesses had gone on to raise further equity, 703 of Future Fund loans are still yet to convert. What’s more, 33 of the companies have been bought out, while 54 have gone into administration.
As yet, the British Business Bank believes that it is too early to gauge how the fund has performed overall.
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