Growing tech startups get £250m lifeline

The Government has made commercial loans worth £250 million available to high-growth tech startups affected by the coronavirus pandemic.

The Future Fund will provide ‘bridge funds' worth between £125,000 and £5m each between May and 30 September 2020.

To qualify, a business must be an unlisted UK-registered company that raised at least £250,000 from private third-party investors in the last five years and have a substantive economic presence in the UK.

If the company is a member of a corporate group, only the ultimate parent company, if a UK-registered company, is eligible to receive the loan.

The Future Fund arrives on the back of a £500m investment fund available to high-growth companies in the UK and a £750m pot for SMEs focusing on research and development (R&D).

Chancellor Rishi Sunak said:

"Britain is a global leader when it comes to innovation.

"Our startups and businesses driving R&D are one of our great economic strengths, and will help power our growth out of the coronavirus crisis.

"This new fund will mean they can access the capital they need at this difficult time, ensuring dynamic, fast-growing firms across all sectors will be able to continue to create new ideas and spread prosperity."