Future Fund Launches To Support Life Sciences Growth

The government’s £500 million Future Fund was launched on May 20th, designed to help innovative and high growth businesses in the UK secure investment to help them navigate their way through the pandemic.

Companies based in the UK can now apply for convertible loans of between £125,000 and £5 million, covering everything from life sciences and technology to the creative industries.

The Fund will be open until September, delivered in conjunction with the British Business Bank. In addition, ministers have set aside £40 million to support innovative start-up firms, including an online farmers’ market platform and a virtual reality surgical training simulator.

And the rules of the Enterprise Investment Scheme have also been amended to provide tax relief to investors in high growth companies, which should protect investors in the Future Fund from losing relief on previous investments made before any investment through the Future Fund.

“Our start-ups and innovative firms are one of our great economic strengths, and they will help spur our recovery from the pandemic,” Rishi Sunak, chancellor of the Exchequer, said. 

“The Future Fund will support firms across the UK to get through the pandemic by stimulating investment, so that they can continue to break new ground in technology and innovation.”

Welcoming the announcement, director-general of the British Private Equity and Venture Capital Association Michael Moore said the fund was “hugely significant” and it will help “build the bridge” between the serious challenges we face today through to the recovery period, enabling venture capital-backed businesses to first survive, then thrive.

“The post-COVID economy is likely to look very different to today’s. The global leadership of venture capital-backed companies in the digital, high technology and life science parts of the UK economy will be critical to the UK’s success and this government support will help them to do that,” he went on to say.

Earlier this month, Kate Bingham was appointed chair of the UK’s Vaccine Taskforce, set up by the government to find and manufacture a COVID-19 vaccine.

One of the long-term solutions to controlling the pandemic and saving lives is to accelerate the development of an effective and safe vaccine. Ms Bingham will coordinate the work that has already taken place in order to make sure that when a viable one is found it can be produced in mass quantities and safety administered in the UK and the rest of the world.

Matt Hancock said the government is determined to make use of the world-leading scientists we have in this country to develop a vaccine and Ms Bingham’s work will be critical in this. Her appointment, he went on to say, gives the UK a headstart in the discovery and manufacturing of a successful vaccine.

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