There is some good news to share from the "Save Our Startups" campaign, a grassroots initiative created by and for the UK's startup ecosystem, which The Bradfield Centre is proud to support. Here in full is the latest update from the campaign, with important news on new funding sources available to startups:
We mentioned last week that talks with the Government had been positive and we were hopeful that the Chancellor would soon announce a package of measures for startups.
Following lengthy discussions with the Chancellor and his team led by Coadec, Capital Enterprise, and Founders Factory and featuring many of our other founding partners - we’re delighted to announce that we now have a deal.
The Government will be implementing an equity-based funding solution specifically for startups. Startups will soon be able to access £500 million in financial assistance through a new convertible loan program from the British Business Bank - called the ‘Future Fund’. The Government will match private investment on a 1:1 basis up to a maximum of £5 million, and from a minimum of £125,000. Our partners are now in discussions with the Government to ensure the scheme is open to the widest possible amount of private investors to ensure as many companies can benefit as possible.
To be eligible, your business must be an unlisted UK registered company that has previously raised at least £250,000 in equity investment from third-party investors in the last five years.
You can read more here.
Not only that, but using Innovate UK and other funding vehicles to push support to startups was another of our key asks, and now the Government has allocated Innovate UK £750 million to provide additional liquidity.
This includes £550 million of new funding to support R&D activity, and £175,000 of support will be offered to startups who do not currently receive Innovate UK funding. Importantly, £200 million of grant and loan payments will be accelerated to existing Innovate UK customers on an opt-in basis. The Treasury has also committed HMRC to speed up the payment of R&D tax credits.
Securing a comprehensive liquidity package was our campaign’s number one goal in the short run, and we are delighted to have achieved this. We’d like to thank the Chancellor and the Treasury for engaging with our partners over the past few weeks and for showing the flexibility to include our vital sector.
But above all we’d like to thank you all - we couldn’t do it without your help and support.
We still have a lot more to do over the coming weeks and months; there will still be work to be finalised on the delivery of these schemes and making sure that as many startups as possible can benefit. We will need your help to make sure we get this right. We will be in touch again soon.