The Future Fund – Official Launch and Further Detail

On Wednesday 20th May the government officially launched the ‘Future Fund’.

The Future Fund supports innovative UK companies with significant potential, that are essential in ensuring the UK retains its world leading position in science, innovation and technology.

These companies will typically rely on some form of equity investment and will be currently affected by Covid-19.

Key Features

The key features of the scheme are:

  • The government can make unsecured bridge funding available alongside other third-party matched investor(s);
  • Loans of £125k to £5m will be available, subject to a cap of the loan being no more than 50% of the bridge funding being provided to the company;
  • Total funding available for the scheme is £250m;
  • The funding will solely be used for working capital purposes;
  • The government will receive a minimum of 8% per annum (non-compounding) interest to be paid on maturity of the loan, with maximum loan periods of 3 years.

The practical details about the process for making an application are:

  • Companies will be able to apply via an online portal;
  • The third-party investors will need to have already been identified before applying: the government will not help to find investors to provide the matched funding;
  • It is an investor led process which means that the lead third party investor will need to complete the online application, by providing details about themselves, the other investors and the company and, if successful, the platform will generate the documentation for the company and investors to sign;
  • A solicitor will need to be appointed by the applicant company to facilitate the payment mechanics at completion of the Convertible Loan Agreement.


Companies will be eligible for the scheme if:

  • They are unlisted entities;
  • They have raised £250k or more from third party investors over the last 5 years;
  • At least one of the following is true;
    • Half or more employees are UK based;
    • Half or more revenues are from UK sales;
  • They were incorporated on or before 31 December 2019.


The Future Fund will be delivered in partnership with the British Business Bank.

RGCF has significant experience of the funding world and how to successfully raise funding, in good times and bad.  If you would like to discuss this further, please contact:

Nick Johnson

CF Partner


Alex Simpson

CF Senior Manager

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