Information for Companies

Open for applications until the end of September 2020

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:

  • 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)
  • If the company is a member of a corporate group, it must be the ultimate parent company
  • 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
  • The company must be a UK incorporated limited company
  • The company must have been incorporated on or before 31 December 2019
  • At least one of the following must be true for the company:
    • Half or more employees are UK based
    • Half or more revenues are from UK sales

Investors and companies should note that the proceeds of the convertible loan agreement must not be used by the company 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 twelve 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; or
  • 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.

Data and documents provided may be used for KYC / 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