Future Fund Publishes Diversity Data of Companies Receiving Convertible Loan Agreements
- £1,066.6m worth of convertible loans approved for 1,055 companies
- 39% of funding to companies outside London worth £419.8m
- 77% of funding to mixed gender senior management teams
- 57% of funding to mixed ethnicity senior management teams
Today the British Business Bank publishes Future Fund data that gives a detailed picture of the 1,055 companies that have been approved for £1,066.6m worth of Convertible Loan Agreements since the scheme was launched on 20 May. There have been 1,616 applications in total since the scheme launched. The Future Fund will close for applications on Sunday, 31 January 2021.
This data shows where companies are based across the UK and the composition of the senior management teams by gender and ethnicity. This data is self-reported by the companies applying to the Future Fund.
Data by region
The data reveals that 39% of the funding approved for companies, relating to convertible loan agreements worth £419.8m, was for businesses with their headquarters located outside of London. Of the total amount of £1,066.6m, 15% is to companies headquartered in the South (South East and South West), 10% in the North (North West, North East and Yorkshire and the Humber), 8% in the East of England, 4% in the Midlands (East Midlands and West Midlands) and 3% in the Devolved Nations (Scotland, Wales and Northern Ireland). London accounts for 61% of companies, in line with the wider market trends for equity investments. The British Business Bank’s 2019/20 Small Business Finance Markets report showed that London received 66% of equity investment by value in 2019.
Data by gender mix of senior management team
Of the 1,055 companies that have been approved and received their Convertible Loan Agreements for signature, 77% of funding is to companies with mixed gender senior management teams. Since the launch of the Future Fund more than 30 venture capital firms and angel groups have become signatories to the Government’s Investing in Women Code, alongside the Future Fund.
As part of its commitment as a signatory to the code, the Future Fund will supply HM Treasury with statistics on founder gender. HM Treasury intends to publish the first annual Investing in Women Code Report in the first quarter of 2021.
Data by ethnicity mix of senior management team
Black, Asian and Minority Ethnic (BAME) only and mixed ethnicity management teams account for 63% of funding to companies that have been approved for Convertible Loan Agreements so far, worth £617.4m.
Future Fund data by gender of company senior management team (self-reported by applicant)
|Management Team||No. of|
convertible loans approved
|All female team||13||£13.7m|
|All male team||278||£216.6m|
|Mixed gender team||722||£786.7m|
|Chose not to provide data||42||£49.6m|
Future Fund data by ethnicity of company senior management team (self-reported by applicant)
|No. of convertible loans approved||Value of convertible loans approved|
|All BAME team||54||£52.3m|
|All white team||425||£370.3m|
|Mixed ethnicity team||494||£565.1m|
|Chose not to provide data||82||£79.0m|
Future Fund data by location where company applying to Future Fund is based
|No. of convertible loans approved||Value of convertible loans approved|
|East of England||73||£81.5m|
|Yorkshire and the Humber||31||£30.6m|
The Future Fund uses an online platform based on a recognised financial instrument, and a set of standard terms with published eligibility criteria. The process provides a clear, efficient way to make funding available as widely and as swiftly as possible without the need for lengthy negotiations.
Official statistics report senior management team composition because Future Fund is available to many companies beyond early stage. Our analysis of the company founder data, where available, shows it tracks above market figures for gender diversity.
British Business Bank James Burnham
Senior Communications Manager
020 377 21312 / 07880 063 474
British Business Bank
0203 905 1495 / 07799 860 980
The British Business Bank Team at MHP Communications
020 3128 8589
Notes to Editors
The data shown is as per 6.00pm, January 24th, 2020.
The Future Fund supports the UK’s innovative businesses currently affected by Covid-19. These businesses have been unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment. Initially, £250 million was made available by the government for investment through the scheme, to be matched by private investors, with the Treasury making clear the amount could be increased if needed. Developed by government and delivered by the British Business Bank, the Future Fund launched for applications in May and will be open until 31 January 2021.
To date, £1,066.6m worth of convertible loans have been approved under the Future Fund. This sum has been matched by at least the same amount from third-party investors. Operating on a commercial basis the Future Fund unlocks additional third-party investment on a match funded basis, creating a bridge to the next equity funding round for innovative companies with good potential.
Application processes are expected to take a minimum of 21 days from initial application to funding being awarded, providing applicants provide all the information required.
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 make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. 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 main programmes were supporting nearly £8bn of finance to almost 94,800 smaller businesses at end of June 2020. Since March 2020, the British Business Bank has also launched four new Coronavirus business loan schemes, delivering more than £69bn of finance to 1.5m businesses. As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses:
- The British Business Bank Finance Hub provides independent and impartial information to high-growth businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success. The site also features case studies and lessons from real businesses to guide businesses through the process of applying for growth finance.
- The Business Finance Guide (published in partnership with the ICAEW and a further 21 business and finance organisations) impartially sets out the range of finance options available to businesses at all stages – from start-ups to SMEs and growing mid-sized companies. Businesses can take the interactive journey at https://thebusinessfinanceguide.co.uk/
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