British Business Bank Posts Updated of Equity Stakes in Future Fund Backed Firms

The British Business Bank has posted an updated list that includes new companies backed by the Future Fund, one of several schemes enacted to provide assistance to firms harmed by the COVID-19 health crisis. Created in 2014, The British Business Bank is the UK government’s economic development bank.

The Future Fund is a program designed by the UK government to backstop early-stage ventures impacted by COVID-19 in need of capital to sustain operations. The policy was created in recognition of the fact that many young firms do not generate a profit and thus cannot be self-financing. The alternative was deemed to be the loss of many innovative startups that otherwise would have been able to raise venture funding if the pandemic had not occurred. Some individuals questioned the use of government money in backing risky ventures that historically hold a high rate of failure. Investment crowdfunding platforms participated in the program that required matched private funding to gain government money with offering pages highlighting the participation in the Future Fund.

The capital came via a convertible investment with the expectation that many firms would eventually convert to equity, making the UK government shareholders in the ventures.. The program launched in May of 2022 and continued until January 2021.

The British Business Bank has added 67 companies to its list, with the total now standing at 464 firms. The British Business Bank reports that more than 1/3 of the companies have now converted to equity.

The Future Fund issued 1,190 companies with convertible loans totaling £1.14 billion.

Ken Cooper, Managing Director, Venture Solutions, British Business Bank, issued a statement on the update:

“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. We are pleased to see so many of those companies now going on to raise further private sector capital, which will allow the Future Fund to benefit from their continued growth.”

The list of the new companies is available below.