The Treasury has released further details of the £500m Future Fund, a bailout package for fast-growing start-ups.
As of Wednesday 20 May, start-ups which have previously received £250,000 in equity from third-party investors will be able to access convertible loans of up to £5m from the Government. Most of the loans will convert into equity on a company’s next funding round.
Applicants must be able to match the Government funding with outside investment.
The package will allow Enterprise Capital Funds – partnerships between the British Business Bank and private venture capitalists – to be involved in the scheme, although backers that use the Enterprise Investment Scheme tax relief will not be eligible due to state aid restrictions in Europe.