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Future Fund was critical for business survival finds independent assessment

Press release 09 September 2025

  • 70% of recipients reported that they would have closed within 12–36 months without Future Fund support
  • Nearly half of recipients raised additional private capital
  • Future Fund successfully reached high-growth, innovation-led businesses
  • Some top performing businesses in IT and Software grew exceptionally fast

The Future Fund, which was established to support innovative UK companies with good potential during the Covid-19 pandemic, has been critical to business survival, finds an independent evaluation published today. 

The evaluation, undertaken by RSM UK Consulting LLP, revealed that the programme played a vital stabilising role, mobilising private capital and maintaining investor confidence during the pandemic, particularly in high-growth sectors such as artificial intelligence, biotech and renewables. The Future Fund was developed by Government and delivered by the British Business Bank.

A survey of portfolio firms carried out as part of the research showed that the Future Fund played a crucial role in supporting early-stage, high-growth organisations with 70% of firms stating they would have closed within 12–36 months without this support. The Future Fund helped businesses build credibility and unlock follow-on investment, with nearly half of recipients securing additional private capital 1 .

Marilena Ioannidou, Senior Director Future Fund at British Business Bank said: 

The Future Fund was established at pace to ensure a rapid flow of capital at the height of the pandemic, bridging the funding gap for early-stage equity backed businesses.

It is encouraging to see that the Future Fund delivered on its objectives, providing a vital lifeline for innovative smaller businesses so they could continue to operate and grow, playing a key role in preserving the UK’s innovation pipeline.

Funding supported business growth over the medium term

The Future Fund sought to reduce the risk of companies’ prospects being damaged due to adverse economic conditions. Analysis of business outcomes for this research, using data up to March 2024, finds that portfolio firms experienced strong median turnover growth of 22.5% in 2023 and 21.5% in 2024. However, this came alongside declines in employment across both years, suggesting that firms may have prioritised scaling, investment readiness and innovation over job creation.

Future Fund recipients also achieved higher growth in fundraising than smaller businesses across the wider equity market between 2021-2023. However, in 2024 the fundraising trends of portfolio companies became more aligned with their peers – with higher inflation, interest rates and geopolitical uncertainty affecting their ability to raise private capital.

Exceptional growth for small group of IT and Software businesses

A small group of top performing businesses, concentrated in IT and Software, grew exceptionally fast, achieving growth rates eight times higher than the average. Due to the early-stage nature of venture capital investment, returns are often driven by a small group of exceptional businesses.

More broadly, the latest evaluation also found that the Future Fund successfully reached high-growth, innovation-led businesses across its portfolio. Just over 63% of the portfolio was classified under the ‘Information and Communication’ and ‘Professional, Scientific and Technical Activities’ sectors, reinforcing findings from the Year 1 and Year 2 evaluations that the programme reached its intended market.

Long-term impacts will take more time to materialise

While some businesses have expanded internationally or secured further capital, others have faced persistent challenges - including difficult economic conditions, investor caution, and regional funding disparities. Many of the expected long-term impacts of the funding, such as sustained growth and innovation spillovers, will take more time to fully materialise. Consequently, assessing the cost-effectiveness and return on investment at this stage would be premature, as the portfolio as a whole has yet to reach a point where returns can be meaningfully evaluated. 

As of 30 June 2025, the Future Fund held an equity interest in 667 companies. These include Organox, a medical technology company that has developed a system to keep donated organs in better condition, Microbiotica, a clinical-stage biopharmaceutical company, and Beamery, an AI-powered Talent Intelligence Platform.

Further Information

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Notes to editors

About the British Business Bank

The British Business Bank is the UK Government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK Government.

The British Business Bank’s core programmes support £23bn 2  of finance to almost 64,000 3  smaller businesses.

As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank's Business Guidance Library provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success. 

The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4bn in finance to 1.67m businesses. These schemes are now closed to new applications.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at British Business Bank.  

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