The government has made an initial £250m. available for investment through the Future Fund scheme and will consider increasing this if needed.
Private investors – potentially including venture capital funds, angel investors and those backed by regional funds - will at least match the government investment in these companies.
Andrew Stephenson, Pendle MP, said: “The Future Fund is great news for high growth and innovative businesses here in Pendle, helping them build the bridge from today’s severe challenges to the period of recovery, enabling them to survive then thrive.”
The Chancellor of the Exchequer, Rishi Sunak, said: “Our start-ups and innovative firms are one of our great economic strengths, and they will help spur our recovery from the pandemic.
“The Future Fund will support firms across the UK to get through the pandemic by stimulating investment, so that they can continue to break new ground in technology and innovation.”
Match fund investors will be encouraged to sign the Treasury’s Investing in Women Code, which commits firms to improving female entrepreneurs’ access to tools, resources and finance. The Future Fund is a signatory of this.
The government will also amend the rules of the Enterprise Investment Scheme, which provides tax relief to investors in high growth firms, to protect Future Fund investors from losing relief on their previous investments made prior to any investment through the Future Fund.
The Fund will be open until September and is delivered in partnership with the British Business Bank.
In addition to the Future Fund, Ministers have allocated £40m. through the Fast Start Competition to drive forward new technological advances, and to support innovative start-ups, including a virtual-reality surgical training simulator and an online farmers’ market platform.
This will give companies a vital boost, fast-tracking the development of innovations borne out of the coronavirus crisis.