The Government is setting up a co-investment fund, known as the “Future Fund”, to provide convertible loans of between £125,000 and £5 million to UK high growth companies. The Future Fund should provide financial support to companies that would otherwise not benefit from the various other state aid schemes and grants launched by the Government over the last month to alleviate the financial stress resulting from COVID-19.
The challenge however will be ensuring that funds are only channelled to successful companies that are viable businesses and worthy recipients of support during COVID-19. These are likely to be the more established start-ups, as opposed to seed stage companies.
Leon Miller, a Partner in our Corporate Team, looks at the Future Fund in more detail in his article.
Further details of the scheme will be released by the Treasury over the next few weeks.