Future applicants to the Fund must still prove that at least half of their staff is based in the United Kingdom and that they derive at least 50% of their revenue from sales in the United Kingdom, said the Treasury.
“This change means that the startups that are trying to be the best and have seized opportunities to grow their business, will benefit from our future, the Future Fund,” the chancellor said Rishi Sunak.
Changes take place in the middle of a strong increase in the demand for the program, which will see the government take equity stakes in startups uk who are struggling to repay their loans due to the crisis of the sars coronavirus.
The Future Fund provides government loans convertible to a value between 125 000 and gbp 5 million to businesses that have previously raised at least 250 000 pounds sterling participations. These loans are matched pound for pound by private investors, but the public debt will be converted into equity if the loans are not repaid.
The fund is designed to help startups, in industries such as technology and life sciences, who would otherwise have struggled to survive, let alone grow throughout the crisis of the sars coronavirus.
The government has initially committed $ 250 million of pounds worth of loans in the context of a fund of 500 million pounds sterling which is also funded by private investors. However, the government has now approved for 320 million pounds sterling from future loans to more than 320 start-up businesses.
The Treasury has not confirmed whether there is a ceiling for the expanded fund, initially launched on 20 may.
The secretary of business, Alok Sharma, said: “While we reboot our economy, it is essential that our innovators and our risk takers get all the support they need to thrive.
“Our decision to relax this rule recognizes the importance of many of the startups the most advanced in the United Kingdom so that we bounce against the coronavirus. “