HM Treasury has opened a new £375m scheme to drive investment in the UK’s most high growth, innovative and R&D intensive firms. With the aim to supercharging the post-pandemic economy.
Chancellor Rishi Sunak also announced that he will host a Treasury Connect tech conference in East London in September to bring together the CEOs and senior leaders of the UK’s biggest tech firms and investors.
Under the UK-wide Future Fund: Breakthrough scheme the Government will commit £375 million of funding to firms looking to raise at least £30 million of investment. To be eligible, businesses must have commitments of 70% of an investment round from private investors with a track record of financing innovative companies. The Government will co-invest with private investors to help scale up innovations across UK industries which in turn will create jobs.
The scheme will span across industries such as life sciences, quantum computing and clean technology. The scheme will accelerate the deployment of breakthrough innovations such as developing life-saving new medicines and technologies that could support the UK’s transition to net zero.
It is part of the Government’s commitment to secure the UK’s status as a scientific superpower, with multi-billion-pound investment in research and development, to help build a future economy and create skilled jobs.
Due to high research and development costs, breakthrough technology companies typically require more capital, than other companies, to bring their products to market. The UK’s most innovative companies are key drivers of future growth and it is estimated that 1% growth in these firms could grow the UK economy by £38 billion.
In March 2020, the Government introduced the Future Fund which successfully supported the high-growth sector during the pandemic so that its potential was not subdued. This scheme provided more than £1 billion of convertible loans to 1,190 businesses to help them through the pandemic.
The Government is also supporting innovative companies through the Plan for Growth, which includes the Future Fund: Breakthrough, the Innovation Strategy and £14.9 billion of spending on research and development.
A Government press release can be viewed here.