Future Funding Platform Now live
The new scheme has finally been opened after its initial announcement on 20 April, to assist UK companies with good potential, whom rely mostly on equity investment and that are still currently affected by COVID-19.
The scheme works on the principal that the investors apply (albeit company can register interest), on the Future Fund Portal (www.uk-futurefund.co.uk/s), certifying that they meet the scheme eligibility criteria (see below) and provide key investment details, with the company confirming the accuracy of the submission, which also must meet eligibility criteria (see below).
The Future Fund provides funding of between £125,000 and £5m, which MUST be matched by the equity investors, whom can invest more than the £5m cap. The funds are NOT to be used for : (a) repayment of borrowing; (b) dividend payments; (c) bonus/non-contractual incentive payments; or (d) advisory fee payments.
Loans will have the same interest rate as agreed between the investors and the Company (8% p.a. minimum), accrued until the loan converts into equity, which automatically matures after 3 years, or earlier on an exit or new funding round.
If you are interested in pursuing an application through the Future Fund, please contact us, and we will be happy to guide you through the process.
INVESTOR ELIGIBILITY CRITERIA
The investor must be:
- an “investment professional”;
- a high net worth company;
- a high value trust;
- a Certified Sophisticated (‘CS’) investor (including self-certified);
- a Certified High Net Worth (‘HNW’) individual;
- one of the above in the investor’s home jurisdiction (or equivalent);
- an association of HNW or CS investors; Or
- capable of being classified as a “professional client”.
The above being defined under the FCA Rules and Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. (More detailed criteria available on the Future Fund Portal)
COMPANY ELIGIBILITY CRITERIA
The Company must:
- have raised at least £250,000 in equity from third party investors in prior funding rounds in the last 5 years;
- be the ultimate parent company, in the case of a group company;
- not be listed on a regulated stock market/exchange or other listing venue;
- be a company incorporated in the UK before 1 January 2020;
- have either:
- half or more employees based in the UK, or
- half or more revenue from the UK
(More detailed criteria available on the Future Fund Portal)