British Patient Capital to deliver £375 mn of government funding
By Joy Dumasia
British Patient Capital, Future Fund: Breakthrough, announced by the Chancellor of the Exchequer at Budget 2021, opens today for applications. This UK-wide programme will deliver £375m of government funding via British Patient Capital, a British Business Bank commercial subsidiary.
Due to high research and development costs, breakthrough technology companies typically require more capital than other companies to fuel the later stages of their growth. Because of their ability to multiply and have a significant economic impact, the development of these innovative companies is critical to the UK’s future prosperity and economic recovery.
British Patient Capital will make equity co-investments with private sector investors in later-stage R&D-intensive UK companies operating in breakthrough technology sectors, such as quantum computing, cleantech, and life sciences.
Future Fund: Breakthrough is focused on an area of the market with a high need for additional patient capital. To be eligible for the scheme, companies must, inter alia, raise a minimum total investment round size of £30m. The maximum Future Fund: Breakthrough will contribute to an investment round of 30%. This means the minimum amount of private sector funding is £21m. The company must also have raised at least £5m of equity investment from third-party investors in previous funding rounds.
Judith Hartley, the CEO, British Patient Capital, said: “With many world-class universities and a strong track record in science and research, the UK is fertile ground for creating high-growth companies based on cutting edge technologies. Through the commercialisation of R&D, these transformative companies will help accelerate the deployment of innovative breakthrough technologies that can transform major industries, develop new medicines, support the transition to a net-zero economy and strengthen the UK’s position as a science superpower.”
Recently, IBS Intelligence reported that Manchester-based startup Orka today announced that it had secured €33.5 million from Sonovate, the British Business Bank Future Fund, and existing investors, including former UK CEO of Adecco Peter Searle.
IBSi Daily News Analysis
November 30, 2023
Majority of travellers prefer cashless transactions in APAC, study showsRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage
Other Related News
November 29, 2023