Future Fund now has stake in 591 firms
The government now holds an equity stake in 591 innovative, high-growth companies via the Future Fund, according to new British Business Bank data released today.
The Future Fund was launched during the pandemic, enabling firms to apply for government funding in the form of convertible loans, subject to equal match funding from private investors.
A number of peer-to-peer lending platforms applied to the scheme, some of which have now seen their loans converted into equity, including JustUs and CapitalRise.
The British Business Bank has today published a list of 67 additional companies in which the Future Fund now holds an equity interest after the loans were converted.
The rate of conversions in the first quarter increased compared to the previous quarter, while the number of insolvencies also continued to grow in this quarter, with 18 new insolvencies added.
This comparative increase in corporate activity is due to outstanding Future Fund loans nearing their three year maturity date as well as wider economic conditions, the British Business Bank said.
Read more: Half of Future Fund recipients say scheme saved business
Companies in which the Future Fund now holds an equity interest include biosensing algorithm company B-Secur; autoimmunity drug discovery company Istesso and sustainable packaging company Transcend Packaging.
“The Future Fund was created to ensure a flow of capital, at the height of the pandemic, to companies that would otherwise have been unable to access government support schemes, while ensuring long-term value for the UK taxpayer,” said Ken Cooper, managing director, venture solutions at the British Business Bank.
“The Future Fund is now entering the maturity phase, which signals three years since the first loans were executed. The comparative increase in activity this quarter is in part due to outstanding loans nearing their maturity, as we contact companies with outstanding loans in advance to set out the options available to them.”
The Future Fund launched on 20 May 2020 and was open for applications until 31 January 2021. It issued 1,190 companies with convertible loans worth £1.14bn in total.