Information for companies

The Future Fund scheme has now closed for new applicants.

The Future Fund will provide convertible loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal matched funding from private investors.

The minimum aggregate loan amount is £250,000. The maximum amount of the Government loan is £5 million. There is no cap on the amount that the matched investor(s) may loan to the company.

This is an investor-led scheme, meaning that a lead investor applies on behalf of themselves and may provide information about other investors making up the investment round, in connection to a company.

The distribution of funds for successful applications will be handled through a nominated company solicitor. It is the company’s responsibility to appoint a solicitor with the necessary right to practice and handle client monies.

This page provides information relevant to companies on how to apply for the scheme, who is eligible and what information will be needed to complete the application.

Please read our Future Fund FAQs for Companies

Eligibility criteria

To be eligible for the scheme, the company must meet the following criteria:

  1. The company must have raised at least £250,000 in equity from third-party investors in previous funding rounds in the last five years (from 1 April 2015 to 19 April 2020, inclusive).
  2. If the company is a member of a corporate group, it must be the ultimate parent company.
  3. The company does not have any of its shares or other securities listed on a regulated market, a multilateral trading facility, a recognised investment exchange and/or any other similar market, stock exchange or listing venue.
  4. The company must be a UK-incorporated limited company or be eligible to apply as a non-UK parent company (see specific eligibility criteria in the FAQs for non-UK parent companies).
  5. The company must have been incorporated on or before 31 December 2019 (or if you are a non-UK jurisdiction company, this criterion applies only to at least one UK subsidiary operating company).
  6. At least one of the following must be true for the company (if you are a non-UK jurisdiction company, this criterion applies to your group): (i) half or more employees are UK-based; (ii) half or more revenues are from UK sales.

If you are applying as a non-UK jurisdiction parent company, the company must also meet the following criteria:

  1. The company must have participated in an accelerator programme, on or before 19 April 2020, and participation in the accelerator mandated incorporation of the ultimate parent company in a non-UK jurisdiction (see the definition of “accelerator programme” in the FAQs for non-UK parent companies).
  2. The company must have received investment from the accelerator programme on or before 19 April 2020.
  3. The company must be the ultimate parent company of a group which contains at least one subsidiary operating company incorporated in the UK on or before 31 December 2019.
  4. If the group (or any entity within the group) was in existence before the company was incorporated, the ultimate parent company of the group (or the sole entity, if applicable) must have been incorporated in the UK.

Note: for non-UK companies, to protect the use of public funds, all applications will be assessed against UK Government investment standards on specific jurisdictions by reference to factors such as sanctions, tax transparency, and the cost and complexity of implementation.

The UK Government will also take into account concerns around the proper use of public finances and wider public policy risks, as well as whether investment would undermine the integrity or public credibility of the Future Fund. Once we have assessed the eligibility of the non-UK company and the compatibility of its jurisdiction of incorporation and corporate form with the scheme, we will be in touch.

Investors and companies should note that the company should use the proceeds of the convertible loan agreement solely for the purposes of operating expenditure and/or capital expenditure in respect of its own business and must not use the proceeds of the convertible loan agreement to:

  • repay any borrowings from a shareholder or a shareholder related party (other than the repayment of any borrowings pursuant to any bank or venture debt facilities)
  • pay any dividends or other distributions
  • for a period of 12 months from the date of the relevant convertible loan agreement, make any bonus or other discretionary payment to any employee, consultant or director of the company other than as contracted prior to the date hereof and as paid by the company in the ordinary course of business
  • pay any advisory or placement fees or bonuses to any corporate finance entity or investment bank or similar service provider on monies advanced by the Future Fund, or
  • lend to, invest in, or otherwise provide finance to companies or persons that are not part of the company’s group.

The company will also undertake in the convertible loan agreement not to use or permit the use of the proceeds of the convertible loan agreement (whether directly or indirectly) to make loans to other businesses alongside the Future Fund as part of the Future Fund Scheme.

Data and documents provided may be used for Know Your Customer (KYC)/Anti-Money Laundering (AML) and general fraud checks as part of the full application.

Participating companies are advised to take legal advice in order to understand the full implications of participating in the Future Fund. Participating companies will also be required to nominate a solicitor and confirm that the solicitor is prepared to act and is able to receive and hold client funds.

Companies may be contacted at any point during and/or after the application process for the purposes of evaluation.

Information we capture

As part of the application process, we will collect information about the company, as the intended recipient of the convertible loan. We will use the information we collect to ensure that we are allocating funds fairly through the Future Fund scheme. We reserve the right to share all data for research purposes with other Government departments and agencies acting on our behalf.

See our privacy policy