In a potentially key day for UK fintech, the Future Fund: Breakthrough, announced by the Chancellor of the Exchequer at Budget 2021, opens today for applications.
This UK-wide programme will deliver £375m of government funding via British Patient Capital, a commercial subsidiary of the British Business Bank.
Due to high research and development costs, breakthrough technology companies typically require more capital than other companies, to fuel the later stages of their growth. Because of their ability to grow rapidly and have a significant economic impact, the growth of these innovative companies is critical to the UK’s future prosperity and economic recovery.
Through the Future Fund: Breakthrough programme, British Patient Capital will make equity co-investments with private sector investors in later stage R&D-intensive UK companies operating in breakthrough technology sectors, such as quantum computing, cleantech, and life sciences. British Patient Capital will construct a portfolio of growth-stage breakthrough technology companies over time.
Judith Hartley, CEO, British Patient Capital, said: “With many world-class universities and a strong track record in science and research, the UK is fertile ground for creating high-growth companies based on cutting edge technologies.
“Through the commercialisation of R&D, these transformative companies will help accelerate the deployment of innovative breakthrough technologies that can transform major industries; develop new medicines; support the transition to a net zero economy and strengthen the UK’s position as a science superpower.
Future Fund: Breakthrough will enable these R&D intensive companies to raise the patient capital they need to fuel the later stages of their growth, and in doing so, help ensure the UK is a world leader in the industries of the future.”
The scheme is separate and different to the now closed Future Fund that provided convertible loans of up to £5m to a wide variety of innovative UK companies, to address the funding challenges caused by Covid-19.