Future Fund: Breakthrough is open for applications. The new UK-wide scheme is encouraging private investors to co-invest with the Government in high-growth, innovative companies. It will deliver £375 million of government funding via British Patient Capital, a subsidiary of the British Business Bank.

This funding is for businesses that are looking to raise at least £30 million of investment. The Government will provide up to 30% of the required investment and the remaining 70% should come from private investors.

The scheme is targeting innovators in a range of breakthrough technology sectors, including life sciences, quantum computing and clean technology. It will enable businesses to scale up and bring their transformational technologies to market, helping secure the UK’s position as a scientific superpower.

Eligibility Criteria

To qualify for the scheme, a company must:

• Be a UK-registered business with significant UK operations i.e., at least half of the company’s employment base and half of its research employees should be based in the UK.
• Have secured at least £5 million of equity investment in previous funding rounds in the last five years.
• Be raising a minimum investment round size of £30 million.
• Be carrying out R&D activity in the UK by meeting all three of the following criteria:

1. 1. Your R&D spending must have been i) at least 10% of your total operational cost base on average over the last 3 years or ii) at least 15% in one of the past 3 years.
   2. Your company must be developing defensible intellectual property in the UK, which will become the company’s main revenue source.
   3. You intend for at least 20% of your team to be carrying out research for at least 3 years from the date of investment, in roles that require a relevant master’s degree or higher.

How to Apply

Companies cannot apply directly for Future Fund: Breakthrough funding. Rather, applications must be made by a lead investor, who should meet the criteria listed by British Patient Capital.

Firstly, the lead investor must complete an online application form to prove that they meet the eligibility criteria. Following this, they will share an investment paper with British Patient Capital which explains why they are making the investment.

The lead investor will then need to pass reputation and customer due diligence checks, and share any legal and financial due diligence reports that they have prepared on the benefitting company.

More Information

More information is available on the British Patient Capital’s website. If this isn’t the right opportunity for you, and you would like to explore alternative funding options, please contact us to arrange a free consultation.