Future Fund FAQs

Future Fund FAQs

About the Future Fund

All defined terms in this document are set out in the Glossary of Terms document available on the portal.

These FAQs are provided for informative purposes. They are not intended to provide advice of any kind (including legal, financial, tax or other professional advice). You should seek professional or specialist advice before doing anything on the basis of this content.

The Future Fund scheme has now closed for new applicants. We are now processing applications which were correctly completed and submitted by a lead investor and matched by the investee business before 23:59 GMT on Sunday, 31 January 2021, when the scheme closed to new applications. The online portal will remain open for Investee companies with legally completed CLAs to submit information and MI for portfolio monitoring purposes. Please see the Closure of Scheme FAQs for further information on how this impacts new and existing applicants.

Loans advanced under a CLA cannot be used to repay shareholder or related party loans (other than under any bank or venture debt facilities), pay dividends, pay bonuses or discretionary payments that are non-contracted or not in the ordinary course of business for 12 months, pay advisory, placement or similar corporate finance type fees in relation to that CLA or lend to, invest in, or otherwise provide finance to companies or persons that are not part of the Investee Company’s group. In the case of non-UK Parent companies, the proceeds from the loan should be used in respect of the UK business of the Investee Company.

Loans advanced under a CLA should be used solely for the purposes of operating expenditure and/or capital expenditure in respect of the company’s group’s business.

The Future Fund provides matched funding and therefore will require third party investor(s) for an application to be made. The Future Fund does not offer a ‘matchmaking’ service where companies can find investors on the portal.

Investors are strongly recommended to confirm the commitment of any other investors investing alongside them before submitting an application for an Investee Company.

No. Applications will be processed on a “first come, first served” basis. The fund will not be split into sub-funds for different sizes of investment.

No. Applications will be processed on a “first come, first served” basis. The application process does not make any distinction on the size of investment.

An Investee Company must have closed at least £250,000 of equity investment for cash consideration from third-party investors in the period 1 April 2015 to 19 April 2020 inclusive. Any application will be subject to the eligibility criteria.

The Future Fund launched in May 2020 and the scheme has now closed for new applicants. We are now processing applications which were correctly completed and submitted by a lead investor and matched by the investee business before 23:59 GMT on Sunday, 31 January 2021, when the scheme closed to new applications. The online portal will remain open for Investee companies with legally completed CLAs to submit information and MI for portfolio monitoring purposes.

This is a temporary and targeted programme to address funding challenges arising from the Coronavirus pandemic.

The Future Fund will operate on a fully commercial basis, on the same terms as third-party investors.

The rate of interest applicable will be no less than 8% (non-compounding), but may be higher for all Investors (including the Future Fund) if that has been agreed between the Investee Company and Investors (other than the Future Fund) prior to the Application.

The interest is only charged on conversion of a Loan into shares or an event of default by the Investee Company. Companies may elect to repay interest prior to conversion.

Investee Companies should make payments without a deduction of income tax at source, unless a deduction of income tax at source is required by law.

Payments to the Future Fund should be made without a deduction of income tax at source on the basis that such payments are received by UK FF Nominees Limited on bare trust for the Department for Business, Energy and Industrial Strategy which as part of the UK Government benefits from an exemption from income tax. The Investee Company is advised to seek its own tax advice in relation to whether the deduction of income tax at source is required by law for payments to the Future Fund and other investors (other than the Future Fund).

The conversion discount will be 20%, unless a higher rate has been agreed with the Investee Company and the Investors (other than the Future Fund). Please refer to CLA for further details.

The Loans can convert into shares in the Investee Company in a variety of circumstances, including fundraisings, exit events and upon the maturity of the Loans. Please note that, Loans may alternatively be repaid on an exit event or at their maturity date either at the election of Investors or, in certain cases, automatically.

The Loans will mature 36 months after the execution date of the CLA.

The Investee Company cannot choose to repay its Loan. The Loans will either convert into shares or be repayable in certain circumstances, such as: specific exit events; maturity of the Loan; or on an event of default by the Investee Company.

All investment funds need to be in pounds sterling. All investments being made by investors the Investors will also need to be made in pounds sterling.

The form of the CLA is a fixed, standard form document. However, certain terms of the CLA, including the interest rate, conversion discount, headroom amount and valuation cap are negotiable between the Investors (other than the Future Fund) and the Investee Company in advance of Application. However, the interest and discount rates cannot be lower than 8% and 20% respectively. If no headroom amount or valuation cap is agreed, they will default to zero and void, respectively.

UK FF Nominees Limited. This entity holds legal title to the Future Fund’s Loans and any shares resulting from their conversion on behalf of the government.

The Future Fund is open to companies in all regions and countries of the UK. Applications from potential investors will be assessed and allocated funding on a first-come-first served basis, subject to meeting the eligibility criteria. Controls are in place to reduce privileged access by more advanced potential investors submitting Applications in respect of a large number of companies on the same day.

The funds received from the Future Fund and Investors should be used in respect of the UK business of the Investee Company.

Entering into the CLA and/or undertaking any of the actions contemplated by it may have tax consequences for the Investee Company and/or any of the Lead Investor or the Other Investors, some of which could potentially be adverse. We would strongly recommend that the Investee Company and each Lead Investor and Other Investor seeks its own tax advice prior to entering into the CLA and/or undertaking any of the actions contemplated by it.

Entering into the CLA and/or undertaking any of the actions contemplated by it will have complex accounting consequences for the Investee Company and each of the Lead Investor and the Other Investors. We would strongly recommend that the Investee Company and each Lead Investor and Other Investor seek accounting advice prior to entering into the CLA and/or undertaking any of the actions contemplated by it.

Investee Companies are not able to make any offer of their Loans (or shares after conversion) through the Future Fund portal.

The Application process is Investor-led and the parties Investors (other than the Future Fund) and the Investee Company will need to have already decided to apply for a matching Loan from the Future Fund before submitting an Application. This portal does not contain any information on any particular Investors or Investee Companies who may choose to participate in the Future Fund scheme.

It is possible that Investee Companies and Investors may need to have regard to relevant securities offering laws in the United Kingdom or in other markets in relation to their activities prior to making an Application on this portal and thereafter.

A limit of 147 Other Investors (in addition to the Future Fund and the Lead Investor) has been included in the Application process to ensure that a Convertible Loan Agreement is always entered into by fewer than 150 persons. This is to ensure that this portal does not inadvertently trigger a requirement for the publication of a prospectus by the Investee Company, but no guarantee is provided that this is the case and Investors and Investee Companies are solely responsible for compliance with all applicable securities laws (including in the United Kingdom). In particular, it is the responsibility of Investee Companies looking to consider this limit when seeking further investment from additional investors after the Convertible Loan Agreement is completed as between Investors and Investee Company.

All Investors and Investee Companies should therefore seek independent advice on the legal, regulatory, financial, accounting and tax consequences of making or participating in an Application and entering into a Convertible Loan Agreement from their respective advisers. No advice is given as to the suitability of any action for any Investor or Investee Company concerned.

No, the portal does not allow for ‘match-making’. Your company must have matched with an investor (or investors) before the Lead Investor submits an Application.

Eligibility

To be eligible for the scheme, a company must meet the following eligibility criteria:

  1. the company must have raised at least £250,000 in equity from third-party investors in previous funding rounds in the last five years (from 1 April 2015 to 19 April 2020, inclusive);
  2. if the company is a member of a corporate group, it must be the ultimate parent company;
  3. the company does not have any of its shares or other securities listed/quoted on a regulated market, a multilateral trading facility, a recognised investment exchange and/or any other similar market, stock exchange or listing venue;
  4. the company must be a UK incorporated limited company or be eligible to apply as a non-UK parent company (see specific eligibility criteria in the FAQs for non-UK parent companies);
  5. the company must have been incorporated on or before 31 December 2019 (or if you are a non-UK jurisdiction company, this criterion applies only to at least one UK subsidiary operating company, and
  6. at least one of the following must be true for the company (this criterion applies to your group):
    1. half or more employees are UK based; and
    2. half or more revenues are from UK sales.

This is an investor-led scheme which means the Lead Investor applies on behalf of itself, the Investee Company and the Other Investors and provides information about the Investee Company and the Other Investors. Initial stages of the Application will be made by the Lead Investor, with the Investee Company subsequently providing and verifying information during the later stages of the Application.

Information about the Lead Investor and the Other Investors is used by the portal to conduct certain checks on them, to compile execution versions of the legal documentation and to send those execution versions out to the Lead Investor and the Other Investors.

The purpose of the Future Fund is to support innovative UK companies that typically rely on equity investment and are currently affected by Covid-19. The funding, which is unlocked by third-party investment on a match funded basis, creates a bridge to the next equity funding round.

The Future Fund can continue to be used to fund the growth of FinTech businesses, fund/asset managers and other businesses which provide or facilitate third-party finance where a Future Fund loan will be used to fund their own business’s operating or capital expenditure.

The Future Fund is open to all companies that meet the eligibility criteria.

No. The Investee Company must have raised at least £250,000 in equity from third-party investors in previous funding rounds in the last five years (from 1 April 2015 to 19 April 2020 inclusive).

No. To be eligible a business must be a UK incorporated private company limited by shares (or a company equivalent to a private company limited by shares if incorporated in a non-UK jurisdiction and applying as a non-UK parent company). Sole traders, partnerships, LLPs and unincorporated bodies are not eligible, nor are companies whose shares are traded on public exchanges.

If the eligibility criteria are not met, your Application will not be able to proceed.

No. AIM quoted companies will not qualify, nor will companies with shares admitted to trading on any other similar market, stock exchange or listing venue.

The Future Fund is open to eligible companies incorporated in England and Wales, Scotland or Northern Ireland or other non-UK jurisdictions where applicable (see details on non-UK parent company applications).

The Future Fund is open to eligible companies operating in all sectors.

Once the CLA has been signed, there is a 90 day window in which additional investors can make further loans to the Investee Company on the same basis as the CLA, up to a headroom amount agreed in the CLA by the Investors and the Investee Company. These further loans will have to be arranged between the relevant Investee Company and further investors outside of the portal and the relevant Investee Company will notify the Future Fund of the outcome. These additional loans do not qualify for matched funding from the Future Fund.

Application process for Future Fund

Completion of the initial part of the Application should not take a long time but will require the Lead Investor to have certain information to hand – this information is set out at the start of the Application process. For those applying on behalf of a non-UK parent company the full process of assessing the application may take a little longer to allow for the impact of jurisdictional changes and any additional requirements.

Yes, the Future Fund requires Investee Companies to provide the same information that current shareholders receive. Additionally, the Future Fund will require information to be submitted quarterly via an online portal for portfolio monitoring purposes.

The Future Fund is collecting data on the diversity of companies to enable us to monitor the diversity of the Applications we receive. The Application asks for the gender mix and ethnicity mix of the management team and the region where the company is based. Providing gender mix and ethnicity mix data information is optional (region is given by the company address).

The Future Fund and British Business Bank will anonymise and aggregate this data and plan to publish it to contribute to increased transparency of the investment markets.

View our privacy notice.

To submit the application you must be a statutory director or company secretary of the company.

You will need the following information to set up a Future Fund portal account:

  • name;
  • job title;
  • email address;
  • password; and
  • telephone number.

We will ask you to review and add or amend the following information on the Investee Company:

  • Investee Company name;
  • legal form;
  • date of incorporation;
  • country of incorporation;
  • UK Company registration number;
  • registered address;
  • operating/trading address (if different);
  • number of full time equivalent employees (this year/last year/two years ago – as applicable);
  • turnover (this year/last year/two years ago – as applicable);
  • website address (if applicable);
  • industry (SIC Code); and
  • nature of Investee Company.

For those companies applying in relation to a non-UK Parent company there are additional information requirements related to the eligibility criteria. Investee Companies will be sent the relevant information requests during the process.

You will need the following information on each company officer and ultimate beneficial owner:

  • whether they are a key principal/director or an ultimate beneficial owner;
  • name;
  • date of birth;
  • citizenship; and
  • copy of an ownership structure chart or supporting documentation showing all ultimate beneficial owners owning 25% or more of the company as well as all intermediary beneficial owners.

We will ask you to for the following information on the diversity mix of your management team – you may choose not to provide this information but we encourage you to do so:

  • gender mix of management team; and
  • ethnicity mix of management team.

You will need the following information on yourself:

  • name;
  • date of birth;
  • country of birth;
  • citizenship;
  • address; and
  • image or scanned copy of a photo ID (driving licence, passport, identity card).

You will need to confirm the following information provided by the Lead Investor on the Investment:

  • amount of the loan provided in aggregate by private investors;
  • amount of the loan requested from Future Fund;
  • amount of the loan provided by the Lead Investor (as the Lead Investor of the group); and
  • whether the Investor had previously invested in the Investee Company (yes/no).

You will need the following information on your nominated company solicitor:

  • name of firm of solicitors;
  • name of primary contact at firm;
  • email address of primary contact at firm;
  • telephone number of primary contact at firm (if applicable);
  • Solicitor registration location (e.g. England and Wales); and
  • Solicitor registration number of firm.

Once an Application is submitted, we will perform checks and may request further evidence.

A Lead Investor must initiate an Application in respect of the relevant Investee Company. An Investee Company (i.e. a company seeking investment) cannot initiate an Application. Once a Lead Investor has submitted an Application, you will receive an email with instructions on how to (i) proceed with opening an online account; and (ii) progress the Application.

You can check your company’s potential eligibility for the Future Fund on the Companies page of the Future Fund website.

No, only one Application per Investee Company can be accepted. A Lead Investor must initiate an Application on behalf of all the Investors (other than the Future Fund) that would propose to participate in the funding. Matched funding must be evidenced in full for the Application to be processed.

You can view all open Applications by logging into your Future Fund online account, and clicking on the ‘View open applications’ button. Here you can see the status of the Application.

Given the high volumes received in the final days of the scheme we are experiencing a longer application processing timeframe. The difference between application timelines will depend on a number of factors including the speed at which applicants are able to provide information and review documentation.

We will conduct a number of checks on the proposed Investor(s) and Company (including KYC and AML checks) and review the Application.

You should have received an email with more information about what happens next in the process.

Contact our customer support team as soon as possible. Contact details are on the Support page.

The Future Fund allocates funding by applying a set of standardised eligibility criteria. These criteria are published on the website. They have been developed to allow for a broad range of companies to benefit from the Future Fund, while protecting taxpayer investment.

To protect the use of public funds, all applications will be assessed against UK Government investment standards on specific jurisdictions by reference to factors such as sanctions, tax transparency, and the cost and complexity of implementation. The UK Government will also take into account concerns around the proper use of public finances and wider public policy risks, as well as whether investment would undermine the integrity or public credibility of the Future Fund.

No. Only new shares issued by the Investee Company, and subscribed for by third party investors, will count towards this eligibility criterion – share transfers will not be relevant to this criterion.

No. The Investee Company must have raised at least £250,000 in equity from third-party investors in previous funding rounds in the last five years (from 1 April 2015 to 19 April 2020, inclusive). Third-party investors means investors other than any connected person of the Investee Company, any founder, employee, worker or consultant or their connected persons. However, investment from non-executive and investment directors can count towards the £250,000 raised, and will be eligible for match funding.

If an application is successful a director of the Investee Company will be required to sign a standard form declaration which includes, among other things, a confirmation of this criterion.

How the Future Fund relates to other types of funding or Investment Schemes

This is not the intention and companies that have received loans under a CLA may continue to offer normal trade credit.

No, this runs contrary to one of the basic principles underlying the Future Fund of matching its investment with independent, private funding from third-party investors. Investee Companies will undertake in the CLA that proceeds from the Loans will not be used to make loans to other businesses alongside the Future Fund as part of the Future Fund Scheme and the Lead Investor will be asked to confirm on behalf of itself and the Other Investors (so far as it is aware in respect of those Other Investors) that none of their proposed funding is derived wholly or partly from the proceeds of another Future Fund application.

HM Treasury and HMRC are responsible for all decisions on tax reliefs, including on SEIS and EIS.

It is our understanding that the structure of the CLA does not meet existing rules for SEIS or EIS eligibility. Compatibility with tax schemes is a matter for HM Treasury and HMRC.

HM Treasury and HMRC are responsible for all decisions on tax reliefs, including on SEIS and EIS.

The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.

HM Treasury and HMRC are responsible for all decisions on tax reliefs, including on SEIS and EIS.

Yes, subject to meeting the eligibility criteria for the Future Fund.

Existing ASA’s do not qualify as matched funding for the purposes of the Future Fund, nor do they qualify as equity raised until they have converted into shares.

The Loans shall rank pari passu with all other unsecured indebtedness or obligations of the Investee Company and shall be subordinated to any secured debt of the Investee Company.

Managing your Future Fund account

You can sign into your account by clicking on the profile icon on our website (top right-hand corner).

There is a ‘Reset password’ button on the sign in page. Navigate to the sign in page and follow the instructions on screen.

You can edit your profile information by clicking on the ‘Edit profile’ button when you have signed into your account.

Continue with your Application and submit the Application. Then contact our customer support team as soon as possible. Contact details are on the Support page.

General Future Fund questions

A convertible loan is a debt instrument that may convert into shares of the company receiving the loan at a later date.

At least one of the following must be true for the Investee Company:

  • half or more employees are UK based; or
  • half or more revenues are from UK sales.

The Future Fund has signed the Investing in Women Code and is encouraging other investors to sign because we strongly believe in the value of diverse teams and their importance in business.

The Investing in Women Code is a voluntary commitment to support the advancement of female entrepreneurship in the UK by improving female entrepreneurs’ access to tools, resources and finance from the financial services sector.

The Code requires signatories to take steps to ensure senior responsibility and data transparency and that they adopt appropriate internal practices.

Investors can read further information and sign the Code.

The Future Fund and British Business Bank plan to publish anonymised and aggregated diversity statistics to contribute to increased transparency of the investment markets. These statistics will be published once a sufficient number of applications have been made to Future Fund for data to be meaningful.

View our privacy notice.

The distribution of funds for successful applications will be handled through nominated company solicitors. It is your responsibility to appoint solicitors with the necessary rights to practice and handle client monies. You can consult the public registers of the relevant regulatory bodies in the UK to check your solicitor has the right to practice. You may also wish to instruct a company solicitor to advise on the scheme, your eligibility under the scheme and the associated documents.

The Future Fund terms and conditions can be found here. If your application is successful, you will be entering into a CLA. The terms and condition of the CLA can be found on the Solicitors page of the Future Fund website.

UK FF Nominees Limited is the entity that enters into Convertible Loan Agreements on behalf of the Future Fund. UK FF Nominees Limited is the legal titleholder to the Future Fund’s Loans and any shares resulting from their conversion. It holds beneficial interest in the Loans (and any shares resulting from their conversion) on bare trust for the benefit of the Secretary of State for Business, Energy and Industrial Strategy.

The Future Fund is designed by government and delivered by the British Business Bank. As such, the Future Fund, and FF UK Nominees Limited, are subject to the Freedom of Information (FOI) Act, which gives individuals a right to request any recorded information held by a public authority. Under the FOI Act, public authorities have the right to withhold information using the relevant exemptions included in the Act. Any information requested which is commercially sensitive to either the British Business Bank, the Future Fund, Investors or Investee Companies can be withheld under S43(2) commercial interests. Where required, the British Business Bank may consult with you to understand how the release of requested information under the FOI Act would or would be likely to prejudice your commercial interests.

If you want to find out more about the Freedom of Information Act please visit https://www.gov.uk/make-a-freedom-of-information-request.

You can log a complaint by (1) completing the online enquiry form, (2) emailing our support team, or (3) phoning our support team. Contact details can be found on the support page of the Future Fund website.

If you have a general query about how to access the scheme please contact us on 03307260230 or email FutureFundSupport@british-business-bank.co.uk. If you want specific advice such as legal, tax or investment advice please speak to an appropriately qualified professional.

Frequently Asked Questions for Investors

Information for Investors

All defined terms in this document are set out in the Glossary of Terms document available on the portal.

These FAQs are provided for informative purposes. They are not intended to provide advice of any kind (including legal, financial, tax or other professional advice). You should seek professional or specialist advice before doing anything on the basis of this content.

The Future Fund scheme has now closed for new applicants. We are now processing applications which were correctly completed and submitted by a lead investor and matched by the investee business before 23:59 GMT on Sunday, 31 January 2021, when the scheme closed to new applications. The online portal will remain open for Investee companies with legally completed CLAs to submit information and MI for portfolio monitoring purposes.

Please see the Closure of Scheme FAQs for further information on how this impacts new and existing applicants.

No, however, the Lead Investor must invest at least £12,500.

Yes, the matched funding requirement is that the Lead Investor and the Other Investors invest in aggregate an amount equal to or greater than the amount requested from the Future Fund.

In addition, following completion of the CLA transaction in which the Investors participate, it is also possible for Investee Companies to raise further sums within 90 days up to the headroom amount agreed in the CLA. Note that such further investment must be arranged by the Investee Company outside of the portal and does not qualify for matched funding from the Future Fund.

HM Treasury maintains an up-to-date public list of signatories to the Investing in Women Code.

The British Business Bank works closely with HM Treasury to support and promote the Investing in Women Code. As part of the evaluation of the Future Fund, the Bank expects to monitor investors’ commitment to the Code.

No. Applications will be processed on a “first come, first served” basis. The Future Fund will not be split into sub-funds for different sizes allocated by size of investment.

No, there is no limit.

If a Lead Investor in conjunction with or on behalf of a group of Other Investors, submits multiple applications on the same day and there are a high number of other applications on that day then only one application made by that Lead Investor may be processed on that day.

No. The Future Fund is the name of a UK Government COVID19 support scheme and is not a legal person or entity or fund vehicle. It is not offering any securities or shares to the public.

Instead, Eligible Investors who have decided to make a Loan to an eligible Investee Company on the terms of a Convertible Loan Agreement may apply to the Future Fund for a Loan to be made to the Investee Company on a matched basis on the terms set out in this portal.

This portal contains details on, and access to, the Application process only. It does not contain any information on any particular Investors or Investee Companies who may choose to participate in the Future Fund scheme. The Future Fund does not offer a ‘matchmaking’ service where companies can find investors (and vice versa) on the portal.

The release, publication or distribution of the information on this portal in or into jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the law of any jurisdiction other than the United Kingdom should inform themselves about, and observe, any applicable legal or regulatory requirements.

In particular, the ability of persons who are not resident in the United Kingdom, to apply as a Lead Investor or to participate in a Loan as an Other Investor may be affected by the laws of the relevant jurisdictions in which they are located.

Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction.

To the fullest extent permitted by applicable law, all responsibility or liability for the violation of such restrictions by any person is disclaimed by the Future Fund, FF UK Nominees Limited or their agents, beneficiaries, trustees or advisers. It is your responsibility to satisfy yourself as to the full observance of any relevant laws and regulatory requirements. If you are in any doubt, you should not continue to seek to access the portal.

It is not expected that the Convertible Loan Agreements or any shares in Investee Companies on conversion will be registered under applicable securities laws of any state, province, territory or jurisdiction (including the United States Canada, Australia or Japan). Accordingly, where that is the case, neither the Convertible Loan Agreements nor any shares in Investee Companies on conversion may (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold, delivered or transferred, directly or indirectly, in or into any state, province, territory or jurisdiction (including the United States Canada, Australia or Japan) if to do so would constitute a violation of the relevant laws of, or require registration thereof in, such jurisdiction.

No, shareholders with liquidation preferences will not be automatically excluded from the scheme. A “connected person”, as referred to in clause 2 of the director’s certificate, shall not be deemed to include any shareholder who would become such a connected person solely because of their holding a liquidation preference that would potentially entitle them to a majority of the assets on a winding up. For these purposes, the definition of “control” as used in the definition of “connected person” in section 1122 CTA shall be deemed to exclude section 450(3) (c) and (d) of the CTA from its meaning.

An Eligible Investor must also qualify as a Private Investor to be eligible for matched funding from the Future Fund. Please see the Glossary for details of these defined terms. In broad terms, “Private Investor” is defined as “a person, company or fund who is not connected with an Investee Company… or with a connected person of the Investee Company…”.

“Connected persons” are defined using the definitions set out in sections 1122 – 1123 of the Corporation Tax Act 2010 (and by inference, sections 450–451, but excluding section 450(3) (c) and (d)), which amount to a concept of majority control defined by reference to ownership of the majority of shares in issue or control over the majority of voting rights.

These criteria apply to funds under the Future Fund eligibility rules. Whilst in different contexts and for different purposes a fund may not be a legal person and/or a fund may be considered to be a transparent look through entity, for the purposes of the Future Fund eligibility rules, all funds managed or advised by a single discretionary manager are considered to be a single investor regardless of their legal form. For this reason, multiple funds that are managed or advised by the same discretionary manager are also considered to be acting as a single investor.

The Future Fund is designed so that public investment is matched with investors who are not currently majority owners (and/or decision makers) of businesses. This is to ensure commercial outcomes for state aid and policy reasons, and to minimise the risk of conflicting interests.

Investor eligibility for Future Fund

Investor eligibility criteria can be found on the Investor page of the website. Find further information about the scheme.

It is each Investor’s responsibility to ensure that you are eligible to make a Loan and to ensure you are comfortable making such a Loan. If in doubt, you should seek independent legal advice and/or seek advice from a financial adviser who is authorised under the Financial Services and Markets Act 2000.

Please ensure that all preparatory work and confirmations required for an application are completed and approved by the business ahead of 23:59 GMT on Sunday 31 January 2021as this is the point at which the portal will be closed to new applications. Any changes to the application (such as a change in the lead investor, change to investment amount etc) after this date may delay the processing of the application or may result in the application being rejected.

The Future Fund scheme has now closed for new applicants. We are now processing applications which were correctly completed and submitted by a lead investor and matched by the investee business before 23:59 GMT on Sunday, 31 January 2021, when the scheme closed to new applications. The online portal will remain open for Investee companies with legally completed CLAs to submit information and MI for portfolio monitoring purposes.

Yes, provided such investors are Eligible Investors and meet all three of the following criteria:

  1. Investment decisions are made by private sector investment advisers, fund managers or trustees (or similar) with no influence from any public sector bodies or public sector investors.

This means that having a public sector body or representative sitting as part of an investment committee or exercising any other control over which investments were made would rule that investor out.

Public sector investors may, however, agree a defined investment mandate at the outset (which may be designed to achieve certain outcomes, such as investing in an equity gap), and provided the adviser, manager or trustee has full discretion in executing that mandate, investment decision making will be considered sufficiently independent for these purposes.

Participation of a public sector body or representative in an investor advisory committee, oversight panel or strategic board (or similar), will also be considered compatible with independent investment decisions making, provided such committees, panels, boards or similar are advisory only and have no power or authority to control investment decisions.

  1. There must be a carried interest provision, profit share, or equivalent performance-based compensation, to incentivise the private sector manager, adviser or trustee (or similar) to make commercial decisions.

Evidence of this will be requested as part of the application process. This can include, for example, copies of limited partnership agreements or investment management agreements. We appreciate that each structure is different and the evidence required may vary.

  1. The public sector funding must be deployed alongside private sector funding in your structure.

Private sector funding can sit alongside the public investment in different ways. For example, in a fund that is set up as a form of partnership, public sector funders and private sector funds invest alongside each other as limited partners. In a co-investment structure, private sector funding would be deployed alongside public sector funding on a match funded, deal-by-deal basis.

A Future Fund investment pursuant to a CLA will not count as private sector match funding for the purpose any of the rules applicable to the public sector funder, including those related to meeting its state aid obligations.

For these purposes, funding sourced from the European Investment Fund’s or the European Investment Bank’s own funds is considered private sector. Pension funds whose members are public sector beneficiaries (e.g. local authority pension funds) are also considered private because the source of funding is members’ savings and not public sector funding.

The Future Fund is open to eligible companies incorporated in England and Wales, Scotland or Northern Ireland.

There is no limit to the number of companies in which you can invest, whether as Lead Investor or otherwise.

Eligible Investor must also qualify as Private Investors. Please see the Glossary for details of these defined terms. Private Investors exclude investors who are “connected persons” as defined in the Corporation Tax Act 2010 sections 1122-1123. Broadly speaking, a connected person is a person who controls a company alone or with persons connected with that person. As such, a majority owner or connected persons that own a majority of shares in an Investee Company will not be able to invest in the CLA and qualify for matched funding by the Future Fund.

However, under the terms of the CLA, it is possible for additional investment from non-private investors to be subscribed as part of the Headroom Amount.

If you are unsure of whether you, or persons you are connected with, are connected persons within the meaning of the Corporation Tax Act 2010, please consult with your legal advisers.

There is a required investment of at least £12,500 for the Lead Investor, but there is no minimum investment for Other Investors.

Yes provided you are an Equivalent Professional, High-Net Worth, Institutional or Sophisticated Investor; that your access to the portal is permitted within your jurisdiction; that you have followed all necessary formalities and obtained all necessary consents required to participate in the Future Fund scheme; and you are able to enter into the CLA without it constituting a breach of any laws in your jurisdiction.

If you are uncertain, please seek independent legal or professional advice on the consequences of making or participating in an Application.

One of the basic principles underlying the Future Fund is matching its investment with independent private funding from third-party investors. The Lead Investor will be asked to confirm on behalf of itself and the Other Investors (so far as it is aware in respect of those Other Investors) that none of their proposed funding is wholly or partly derived from the proceeds of another Future Fund application

Application process for Investors in Future Fund

You will need the following information on the Investee Company:

  • Investee Company name

We will use this to source and automatically populate the following information which we ask you to check:

  • legal form;
  • date of incorporation;
  • country of incorporation;
  • UK Company Registration Number;
  • registered address;
  • operating/trading address (if different);
  • website address (if applicable);
  • industry (SIC Code); and
  • nature of business.

You will need to provide the current stage of equity financing of the Investee Company (for instance, start up, seed, early stage, later stage, venture capital, growth capital).

You will need the following information on the proposed investment:

  • aggregate amount of the Loans proposed to be provided by the Investors (other than the Future Fund);
  • amount of the Loan requested from the Future Fund;
  • amount you, as the Lead Investor, propose to invest and
  • whether you have previously invested in the Investee Company (yes/no).

If you are investing with Other Investors:

  • number of Other Investors
  • for each Other Investor:
    • whether they are an Investor who is an individual or Investor Company;
    • if an individual: Name, Date of birth;
    • if a company: Name, UK Company Registration Number;
    • email address;
    • telephone number; and
    • investment amount.

You will need the following information on reasons for applying for the Future Fund:

  • reason for applying; and
  • the intended use of funds.

You will need the following information for a contact at the Investee Company:

  • name;
  • job title (must be a director or company secretary);
  • email address; and
  • telephone number.

Once an Application is submitted, we will perform checks and may request further evidence.

Yes, you can submit multiple Applications. Each Application on behalf of a company must be made separately (i.e. you cannot submit one Application for multiple companies).

The Investee Company will provide additional information in support of the Application and confirm that they are happy for the full Application to be processed.

You should receive an email with more information about what happens next in the process.

Throughout the application process we will reach out to you when we need further information. We will use the contact details you have supplied to do this. It is important that you respond to these requests for information. If our attempts to contact you do not elicit a reply which would enable us to progress your application in the timeframes we set out in the correspondence, the application will be timed out and closed. A notice will then be issued from the Future Fund confirming that. A timed-out application does not prevent you from re applying at a later date whilst the Future Fund is still open for applications.

The Investee Company must have raised at least £250,000 in equity from third-party investors in previous funding rounds in the last five years (from 1 April 2015 to 19 April 2020, inclusive). Third-party investors means investors other than any connected person of the Investee Company, any founder, employee, worker or consultant or their connected persons (see Glossary of Terms for full definition).

Investment from any non-executive directors and directors appointed by investors are considered “third party” for the purpose of this company eligibility criterion.

The Lead Investor completing the Application, is required to provide details of the total amount of funding proposed to be raised under the CLA, along with contact details and amounts to be invested by all Other Investors.

The amount of funding available from the Lead Investor and the Other Investors would also determine the amount that could be matched by the Future Fund.

How the Future Fund relates to other types of funding or Schemes for investors

HM Treasury and HMRC are responsible for all decisions on tax reliefs, including on SEIS and EIS.

It is our understanding that the structure of the CLA does not meet existing rules for SEIS or EIS eligibility. Compatibility with tax schemes is a matter for HM Treasury and HMRC.

HM Treasury and HMRC are responsible for all decisions on tax relief schemes, including VCTs.

It is our understanding that the structure of the CLA does not meet existing rules for VCT eligibility. Compatibility with tax schemes is a matter for HM Treasury and HMRC

No. AIM quoted companies will not qualify, nor will companies with shares admitted to trading on any other similar market, stock exchange or listing venue.

In order for their investment to qualify for matched funding when investing in the round alongside the Future Fund and other Investors, investors working for the Investee Company will need to fall within one of the categories of Eligible Investor and also qualify as a Private Investor(s). See the Glossary of Terms for the definitions of “Eligible Investor” and “Private Investor”.

A director who is eligible to invest on this basis cannot act as both a Lead Investor and the signatory of the Director’s Certificate on behalf of the Investee Company. A different director would need to execute the certificate.

If a director, founder, CEO, employee, consultant or other person working for the Investee Company does not qualify as a Private Investor, any investment from such a person will not qualify for matched funding by the Future Fund. However, under the terms of the CLA, it is possible for additional investment from further investors to be subscribed as part of the Headroom Amount.

Managing your account as an investor

To submit the application you must be a director or company secretary of the entity.

You will need the following information to set up a Future Fund portal account:

  • name;
  • job title;
  • email address;
  • password; and
  • telephone number.

You will need the following information on your entity:

  • entity name.

We will use this to source and automatically populate the following information which we ask you to check:

  • legal form;
  • date of incorporation;
  • country of incorporation; and
  • Company registration number.
  • registered address
  • operating/trading address (if different)

You will need the following information if the entity is regulated:

  • regulatory authority; and
  • regulated reference number (e.g. FCA FRN).

You will need the following information on yourself:

  • name;
  • date of birth;
  • country of birth;
  • citizenship;
  • residential address; and
  • image or scanned copy of a photo ID (driving licence, passport, identity card).

You will need to tell us if your entity has received any other public sector funding prior to applying for funding from the Future Fund.

Once an Application is submitted, we will perform checks and may request further evidence.

You will need the following information to set up a Future Fund portal account:

  • name;
  • job title;
  • email address;
  • password; and
  • telephone number.

You will need the following information on your entity:

  • entity name.

We will use this to source and automatically populate the following information which we ask you to check:

  • legal form;
  • date of incorporation;
  • country of incorporation;
  • Company registration number;
  • registered address; and
  • operating/trading address (if different).

You will need the following information if the entity is regulated:

  • regulatory authority; and
  • regulated reference number (e.g. FCA FRN).

You will need the following information on the investment/fund manager/advisor:

  • fund (fund, entity or managed account) name (as applicable); and
  • fund (fund, entity or managed account) LEI (as applicable).

You will need the following information on yourself:

  • name;
  • date of birth;
  • country of birth;
  • citizenship;
  • residential address; and
  • image or scanned copy of a photo ID (driving licence, passport, identity card).

You will need to tell us if your entity has received any other public sector funding prior to applying for funding from the Future Fund.

Once an application is submitted, we will perform checks and may request further evidence.

You will need the following information to set up a Future Fund portal account:

  • name;
  • job title;
  • email address;
  • password; and
  • telephone number.

You will need the following information on the Investor:

  • name;
  • date of birth;
  • country of birth;
  • citizenship;
  • residential address; and
  • image or scanned copy of a photo ID (driving licence, passport, identity card).

Once an application is submitted, we will perform checks and may request further evidence.

You will need the following information to set up a Future Fund portal account:

  • name;
  • job title;
  • email address;
  • password; and
  • telephone number.

You will need the following information on the Investor:

  • name;
  • date of birth;
  • country of birth;
  • citizenship;
  • residential address; and
  • image or scanned copy of a photo ID (driving licence, passport, identity card).

You will need the following information on yourself:

  • name;
  • date of birth;
  • country of birth;
  • citizenship;
  • residential address; and
  • image or scanned copy of a photo ID (driving licence, passport, identity card).

You will need to tell us if your entity has received any other public sector funding prior to applying for funding from the Future Fund.

Once an application is submitted, we will perform checks and may request further evidence.

General Future Fund questions for investors

For these purposes, public sector funding includes (but is not limited to) funding from central Government departments, local authorities, local enterprise partnerships, public sector investors and European Structural and Investment Funds.

The number of Other Investors should not exceed 147 to avoid Investee Companies having to produce a prospectus. The Prospectus Regulation includes an exemption whereby a prospectus is not required if an offer is made to fewer than 150 investors. Limiting the number of Other Investors to 147 and adding the Lead Investor and the Future Fund ensures the total number of investors in any Investee Company are fewer than 150.

Yes, if the platform’s nominee SPV is the investor on record and a party to the CLA on behalf of the underlying crowdfunding investors.

If any crowdfunding investors are also to invest directly (outside the nominee structure) they would need to be added as “Other Investors” through the Application, with their details to be provided as they would also become parties to the CLA.

FAQs for Solicitors

General

All defined terms in this document are set out in the Glossary of Terms document available on the portal.

These FAQs are provided for informative purposes. They are not intended to provide advice of any kind (including legal, financial, tax or other professional advice). You should seek professional or specialist advice before doing anything on the basis of this content. Please review this set of FAQs in conjunction with the FAQs for Investors on the portal. There is important information relevant to you as a solicitor in this document.

The Future Fund scheme has now closed for new applicants. We are now processing applications which were correctly completed and submitted by a lead investor and matched by the investee business before 23:59 GMT on Sunday, 31 January 2021, when the scheme closed to new applications. The online portal will remain open for Investee companies with legally completed CLAs to submit information and MI for portfolio monitoring purposes. Please see the Closure of Scheme FAQs for further information on how this impacts new and existing applicants.

More information about applications from non UK parent companies

Full details of the scheme can be found on the overview page of the Future Fund website.

The contractual arrangement (to lend funds to the Investee Company) will be entered into by way of Convertible Loan Agreement. Further details on the Convertible Loan Agreement can be found on the Solicitors page of the Future Fund website.

The parties to the Convertible Loan Agreement shall be the Investee Company, the Future Fund (UK FF Nominees Limited) and the other Investors providing the matched funding.

A copy of the Convertible Loan Agreement (PDF, 290KB) can be found on the Solicitors page of the Future Fund website.

If you act for the Investee Company, a director of the Investee Company will be required to provide a director’s certificate in respect of certain confirmations to be given by the Investee Company.

Information submitted throughout the application process is subject to terms and conditions.

A copy of the director’s certificate (PDF, 73KB) can be found on the Solicitors page of the Future Fund website.

UK FF Nominees Limited. This entity holds legal title to the Future Fund’s Loans and any shares resulting from their conversion on behalf of the government.

Solicitors’ role

You may be asked by your client to assist in two aspects in relation to the Future Fund scheme:

  • Legal advice: you may be asked to advise on the scheme and its associated documents, by either an Investor or the Investee Company (further information about the scheme and the application process can be on the Solicitors page of the Future Fund website). and/or
  • Settlement: if you act for the Investee Company it is a requirement of the scheme that you facilitate completion and you must therefore be a UK regulated solicitor permitted to receive and hold client money – this will involve receiving and holding the completion monies to order from the Lead Investor and any Other Investor (or their solicitor(s)), to be released to the Investee Company on execution of the Convertible Loan Agreement and upon confirmation from the Future Fund via the Future Fund portal. You will also receive the completion monies from the Future Fund post-completion, which you will send as soon as possible to the investee company. Please see the FAQs on Settlement and Regulatory Guidance for further information on settlement/completion and handling client money.

No, you do not need to register or apply to act under the scheme and there is no panel of approved firms.

If you act on behalf of the Investee Company, your client will provide your details as their nominated solicitor on the Future Fund portal. We will then contact you.

There are certain restrictions on your ability to act which are set out in the “Solicitor requirements” FAQs; please see below for further information.

Solicitor requirements

To be able to act for your client in respect of this scheme, you are required to meet the following criteria:

  • you must be a practising UK regulated solicitor – registered with the relevant UK regulatory body set out below; and
  • if your client requires you to handle any completion monies, you must be permitted to hold client money and have a client account in accordance with the rules of your relevant UK regulatory body.

Please consult the website of your UK regulatory and/or professional body for further guidance:

Information is also available on the website of the Law Society of England & Wales

You are not prohibited from providing legal advice to your client in respect of the Future Fund.

However, you will be unable to act if your client requires you to handle any completion monies, as freelance solicitors are not permitted to hold client money, save for money that relates to their fees and disbursements.

Settlement – Handling the completion monies

No, in order to deal with the completion monies you must be permitted to handle and capable of handling client money.

Your regulatory and legal obligations in relation to Know Your Client, AML, source of funds, and conflicts checks must be observed. If you have any concerns or questions, please contact your regulator.

If you act for an Investor, your client will receive notifications through the Future Fund portal of the progression of their application, including the request to transfer their completion monies to the nominated Investee Company’s solicitor’s client account. If you are instructed to handle your client’s completion monies on their behalf, you must be a UK regulated solicitor permitted to handle client money and you must act in accordance with the rules on client money applicable to you by your UK regulatory body.

Please note: As the nominated Investee Company solicitor will be required to provide the Future Fund portal with a standard form confirmation letter addressed to UK FF Nominees Limited on receipt of the full amount of the Investor completion monies from the Lead Investor and any Other Investor(s) (as applicable), you must ensure that your client’s completion monies are transferred to the nominated Investee Company solicitor in accordance with the requirements of this letter.

A copy of the solicitor’s confirmation letter (PDF, 103KB) can be found on the Solicitors page of the Future Fund website.

A diagram of the settlement process can be found on the Solicitors page of the Future Fund website

Your involvement is summarised below:

  1. before completion, you will need to receive into your client account, and hold to order pending completion, the full amount of the completion monies on behalf of the Lead Investor and any Other Investor(s) (as applicable);
  2. as the nominated Investee Company solicitor, you will be required to provide the Future Fund portal with a standard form confirmation letter addressed to UK FF Nominee Limited on receipt of the monies described in point (1) above. You must ensure that these monies are transferred to you in accordance with the requirements of this letter;
  3. it will be your responsibility to liaise with the Lead Investor and any Other Investor(s) (or their solicitor(s)) to ensure that you receive the monies described in point (1) above and to agree with them the terms under which you hold those monies;
  4. along with the confirmation letter for signing and dating by you, the Future Fund portal will also issue the Convertible Loan Agreement for signing (but not dating) by the Lead Investor and any Other Investor(s) and the Investee Company. The Future Fund portal will also request an executed director’s certificate from the Investee Company;
  5. if the Future Fund portal has not received your signed and dated confirmation letter, as well as the signed and dated director’s certificate and signed (but not dated) Convertible Loan Agreement within seven days, the Future Fund portal will ask you to re-confirm that you continue to hold the full amount of the Lead Investor and any Other Investor(s) completion monies to their order in your client account;
  6. the Future Fund portal will then issue a fully executed and dated Convertible Loan Agreement. This constitutes completion and will be the trigger for the Future Fund portal to instruct UK FF Nominee Limited’s bank to transfer its completion monies to your client account; and
  7. after completion, you should release the Lead Investor and any Other Investor(s) completion monies to the Investee Company’s bank account in accordance with your instructions and you should send the completion monies from UK FF Nominees Limited to the Investee Company’s bank account as soon as possible once received in your client account.

Your regulatory and legal obligations in relation to Know Your Client, AML, source of funds, and conflicts checks must be observed. If you have any concerns or questions, please contact your regulator. If you require information on the Fund Fund’s legal structure, ownership and control for the purposes of meeting your regulatory and legal obligations then please email futurefundsupport@british-business-bank.co.uk and a KYC Corporate Information pack will be shared with you.

A copy of the standard form of solicitor confirmation letter mentioned above at point (2) can be found on the solicitors page of the Future Fund website.

Regulatory guidance

These roles, as envisaged in the proper administration of the scheme, have been examined by the professional and regulatory bodies in each UK jurisdiction and are considered as being compliant with their rules on professional conduct and with their accounts rules.

Please consult the website of your UK regulatory and/or professional body for further guidance:

Information is also available from the Law Society of England and Wales.

You should act in accordance with the rules applicable to solicitors by your relevant regulatory body in England & Wales, Scotland and/or Northern Ireland (as applicable).

Independence of legal advice should be prioritised at all times. You should act in accordance with the rules and guidance applicable to solicitors by your relevant regulatory and/or professional body in England & Wales, Scotland, or Northern Ireland (as applicable). KYC and conflicts checks should be undertaken as you would do in any other matter when taking instructions from your clients.

Charging fees

There is no prohibition to charging for fees, but your fee arrangements must be agreed with and communicated to your clients in accordance with your engagement letter and the rules and guidance applicable to solicitors by the relevant regulatory and/or professional body in England & Wales, Scotland and/or Northern Ireland (as applicable). It is good practice to ensure that your clients are aware of your fees and charging structure prior to undertaking any work.

This will depend on the fee arrangement that has been agreed with your client. You should act in accordance with the rules and guidance applicable to solicitors by the relevant regulatory and/or professional body in England & Wales, Scotland and/or Northern Ireland (as applicable).

For applications relating to Non-UK Parent Companies

Information for Non-UK Parent Companies

All defined terms are set out in the Glossary of Terms.

These FAQs are provided for informative purposes. They are not intended to provide advice of any kind (including legal, financial, tax or other professional advice). You should seek professional or specialist advice before doing anything on the basis of this content.

The assessment of an application involving a non-UK parent company will require time to complete in order to assess and review any jurisdiction-specific documentation received and carry out any additional structure, diligence and KYC checks that may need to be undertaken manually over and above the provisional checks we ordinarily carry out. We therefore cannot estimate a time period for completion of the assessment at the outset. We do however aim to process applications as quickly as possible.

The Future Fund is built around a standard-form CLA which applicants will be required to enter into in order to allow for a simplified, standardised process. However, certain terms of the CLA, including the interest rate, conversion discount, headroom amount and valuation cap are negotiable between the Investors (other than the Future Fund) and the Investee Company in advance of Application. However, the interest and discount rates cannot be lower than 8% and 20% respectively. If no headroom amount or valuation cap is agreed, they will default to zero and void, respectively. This applies to all applicants to the Fund.

In the case of applications relating to a non-UK parent companies, the jurisdiction specific CLA will be shared with an applicant in a particular jurisdiction during the course of their application process. Applicants will be given due time to review the CLA whilst their application is processed.

The investment from the Future Fund will be made in pounds sterling. All investments being made by the Investors will also need to be made in pounds sterling.

Application process for Non-UK Parent Companies

The Future Fund is an investor-led application process. This will continue to remain the same for applications relating to non-UK parent companies. There are certain differences in the application process for those in this category including the eligibility criteria checks and verification, by a director of the Company, of the Group’s UK substance.

Apply to the Future Fund on behalf of a non-UK parent company.

The required information to start the application by the lead investor includes the details required for all other applications under the scheme. View a list of required information.

However, there may be additional documents and/or confirmations required for non-UK ultimate parent company applications, including:

  • evidence that the Company participated in an Accelerator Programme which satisfies the relevant eligibility criteria;
  • evidence that the Accelerator Programme in which the Company participated in required the Company to be incorporated in a non-UK jurisdiction. This can be evidenced by the terms and conditions of the Accelerator Programme at the time of the Company’s participation in the Accelerator Programme, any other agreement entered into by the Company on entry into the Accelerator Programme, or a signed letter from a senior counsel/manager at the Accelerator Programme confirming the Company’s participation and that it was required to incorporate its ultimate parent company in a non-UK jurisdiction;
  • additional certifications provided by a director of the Company that the Company meets the UK substance test (i.e. half or more of its employees being based in the UK or half or more of its revenues being from UK sales), as set out in the eligibility criteria; and
  • other additional documentary requirements at the sole discretion of the Future Fund.

All successful applicants will be required, as set out in Schedule 4 of the CLA, to submit quarterly information via an online portal for portfolio monitoring purposes.

In addition, the Future Fund is collecting data on the diversity of companies to enable us to monitor the diversity of the Applications we receive. The Application asks for the gender mix and ethnicity mix of the management team and the region where the company is based. Providing gender mix and ethnicity mix data information is optional (region is given by the company address).

The Future Fund and British Business Bank will anonymise and aggregate this data and plan to publish it to contribute to increased transparency of the investment markets.

View our privacy notice

Previous investments need not have been made in pounds sterling; however, the aggregate investment amount needs to be the equivalent of £250,000, calculated by reference to the exchange rate at the time of each investment.

Non-UK Parent Company Eligibility

The Future Fund requires the borrower to be the ultimate parent company and for that ultimate parent company to be UK-incorporated. However, companies which have substantial UK economic presence but have been required to incorporate their ultimate parent company in a non-UK jurisdiction solely in order to participate in an Accelerator Programme (in accordance with the terms and conditions of that Accelerator Programme or any other agreement entered into by the Company on entry into the Accelerator Programme) did not previously qualify for the Future Fund. The scope of the Future Fund is being extended to provide an application route for funding from the Future Fund for such companies, provided they meet certain eligibility criteria.

A non-UK ultimate parent company (“the Company”) of a corporate group (“the Group”) which participated in an Accelerator Programme may be eligible for the Future Fund, provided that it satisfies the following criteria:

  • the Company must have raised at least £250,000 in equity from third-party investors in previous funding rounds in the last five years (from 1 April 2015 to 19 April 2020, inclusive);
  • if the Company is a member of a corporate group, it must be the ultimate parent company;
  • the Company is the equivalent of a UK limited company in the relevant non-UK jurisdiction;
  • the Company does not have any of its shares or other securities listed on a regulated market, a multilateral trading facility, a recognised investment exchange and/or any other similar market, stock exchange or listing venue;
  • it participated in an Accelerator Programme, on or before 19 April 2020, and participation in the Accelerator mandated incorporation of the ultimate parent company in a non-UK jurisdiction;
  • if the Group (or any entity within the Group) was in existence before the Company was incorporated, the ultimate parent company of the Group (or the sole entity, if applicable) must have been incorporated in the UK
  • the Company is the ultimate parent company of a Group which has:
    • half or more of its employees based in the UK; or
    • half or more of its revenues from UK sales;
  • it is the ultimate parent company of a group which contains at least one subsidiary operating company incorporated in the UK on or before 31 December 2019 and
  • the Company received investment from the Accelerator Programme on or before 19 April 2020.

To protect the use of public funds, all applications will be assessed against UK Government investment standards on specific jurisdictions by reference to factors such as sanctions, tax transparency, and the cost and complexity of implementation. The UK Government will also take into account concerns around the proper use of public finances and wider public policy risks, as well as whether investment would undermine the integrity or public credibility of the Future Fund.

Yes. We appreciate that the non-UK jurisdiction in which the Company is incorporated may not use the same taxonomy as the UK, however to be eligible for the Future Fund the Company must be an entity which is equivalent to a UK limited company in that non-UK jurisdiction. For example, sole traders, partnerships, LLPs and unincorporated bodies are not eligible, nor are companies whose shares are traded on public exchanges.

Subject to meeting the criteria for eligibility there are [at the outset] no specific constraints on the jurisdiction in which the Company may be incorporated. However, to protect the use of public funds, all applications will be assessed against UK Government investment standards on specific jurisdictions by reference to factors such as sanctions, tax transparency, and the cost and complexity of implementation. The UK Government will also take into account concerns around the proper use of public finances and wider public policy risks, as well as whether investment would undermine the integrity or public credibility of the Future Fund.

The eligibility criteria require that the Company is the ultimate parent company of a Group which has:

  • half or more of its employees based in the UK; or
  • half or more of its revenues from UK sales.

As part of the application process, the Company will be requested to send a copy of its group structure containing details of employees as at that date and revenue by group company, certified by a Director of the Company.

Accelerators

For the purposes of eligibility, “Accelerator Programme” shall mean a selective, fixed-term, cohort-based programme for early stage companies, which provides seed or venture capital investment and access to mentorship and other professional support. The Accelerator Programme must:

  • have been subject to an open and competitive process (i.e. participant companies were required to formally apply in writing for the programme and were selected following a competitive assessment process against other applicants); and
  • as a condition for participation in the Accelerator Programme, as evidenced by the terms and conditions of the Accelerator Programme at the time of the Company’s participation in the Accelerator Programme or any other agreement entered into by the Company on entry into the Accelerator Programme, have required the ultimate parent company of the Group to be incorporated in a non-UK jurisdiction.

To determine whether an Accelerator qualifies, applicants should consult the definition of Accelerator Programme contained in the eligibility criteria to check whether the programme that they participated in is likely to meet the requirements set out in the definition.

There is no minimum investment amount required to have been made by the Accelerator Programme, provided that any investment was made on or before 19 April 2020 and that the investment was made in the context of the Company’s participation in the Accelerator Programme.

Only new shares issued by the Investee Company, and subscribed for by third party investors, will count towards the £250,000 threshold. Share transfers will not be relevant to this criterion.

FAQs for Closure of scheme

General queries

The Future Fund is open for new applications to be made until 23:59 GMT on Sunday, 31 January 2021. The portal will then be closed to new applications.

A new application is an application that has been correctly completed and submitted by a lead investor and matched by the investee business. If an application is not correctly completed and submitted by the cut off date, it will be rejected as an incomplete application.

The portal will remain open to existing applications that have been correctly completed and submitted by the cut off date. We will continue to keep these applicants informed of progress and work with them beyond 31 January 2021 to complete the next steps. All applications will need to have been accepted and legally completed, with the relevant CLA executed by all parties, including the Future Fund, by 23:59 GMT on Wednesday 31 March 2021.

No, please ensure that all preparatory work and confirmations required for an application are completed and approved by the business ahead of Sunday 31 January 2021. Any changes to the application (such as a change in the lead investor or change to investment amount) after this date may delay the processing of the application or may result in the application being rejected.

Please refer to Application Guidance for advice to investors and companies applying to the Future Fund.

Applications submitted by a lead investor that have been matched by the business by 23.59 GMT on Sunday, 31 January 2021 will continue to be processed after Sunday 31 January 2021.  Such applications will need to have been accepted and legally completed, with the relevant CLA executed by all parties, including the Future Fund, by 23:59 GMT on Wednesday, 31 March 2021.

A new application cannot be submitted after 23:59 GMT on Sunday, 31 January 2021. Should one of your co-investors not be eligible (e.g. a connected party), you will not be able to receive matched funding for their investment. Accordingly, please ensure you have sought advice from your advisers on the eligibility criteria and that your application and parties involved satisfy these fully. Should you have any questions on this, please refer to the FAQs on our website or contact us by email, web form and telephone.