Future Fund Breakthrough

April 23, 2021

In response to the COVID-19 crisis the Government, in conjunction with the British Business Bank, set up Future Fund to provide fast-growth businesses with £1 billion of convertible loans. Stephenson Law was pleased to support a number of companies in successfully securing millions of pounds of funding under this scheme.

In recognition of the importance of the UK's tech sector and the success of Future Fund, Rishi Sunak announced Future Fund: Breakthrough in the March budget. The new scheme, which is expected to launch in early summer, will provide £375m of funding on a matched-funding basis to UK-based R&D intensive companies. It will be delivered again by the British Business Bank, but through a commercial subsidiary called British Patient Capital.

The details are to be confirmed, but we expect that British Patient Capital and private co-investors will subscribe for shares directly instead of making convertible loans.

As with Future Fund the application process will be led by investors, although there may be additional requirements as to the type of investor that can lead the process as the minimum size of the investment round for Future Fund: Breakthrough is £20 million (as opposed to the £250,000 minimum under Future Fund).

We will provide further details of Future Fund: Breakthrough once they are available.

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