The Future Fund is a COVID support program for early-stage firms. The Fund provides access to capital to younger firms that do not qualify for other COVID support schemes. In brief, it is a matching program with the UK government will invest in convertible securities alongside private investors. Several crowdfunding platforms are listing offerings under the program. Launched in May, there have been 1243 applicants so far.
Today, the British Business Bank has distributed an update regarding recipients of funding under the program. According to the Bank:
- £770.8 million worth of convertible loans have been approved for 745 companies
- 42% of the funding has gone to companies outside London worth £320.6 million
- 81% of the funding has gone to mixed-gender senior management teams
- 61% of the funding has gone to mixed ethnicity senior management teams
The update indicates that 42% of funding approved to companies for convertible loan agreements worth £320.6 million have their headquarters located outside of London.
Of the total amount of £770.8 million, 16% is to companies headquartered in the South (South East and South West), 11% in the North (North West, North East and Yorkshire and the Humber), 8% in the East of England, 3% in the Midlands (East Midlands and West Midlands) and 2% in the Devolved Nations (Scotland, Wales and Northern Ireland).
Black, Asian and minority ethnic (BAME) only and mixed ethnicity management teams account for 65% of funding to companies that have been approved for Convertible Loan Agreements so far, worth £459.2 million.
London accounts for 58% of companies. The British Business Bank’s 2019/20 Small Business Finance Markets report showed that London received 66% of equity investment by value in 2019.
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 to sign HM Treasury’s Investing in Women Code, the Future Fund will supply HM Treasury with statistics on founder gender. HM Treasury intends to publish the inaugural Investing in Women Report later this year.
Future Fund data by gender of company senior management team (self-reported by applicant)
| Management Team | No. of convertible loans approved |
Value of convertible loans approved |
| All female team | 9 | £12.2m |
| All male team | 189 | £126.5m |
| Mixed gender team | 516 | £591.8m |
| Chose not to provide data | 31 | £40.2m |
| Grand Total | 745 | £770.8m |
| Management Team |
No. of convertible loans approved | Value of convertible loans approved |
| All BAME team | 40 | £29.0m |
| All white team | 289 | £249.8m |
| Mixed ethnicity team | 355 | £430.2m |
| No info given | 61 | £61.7m |
| Grand Total | 745 | £770.8m |
