Last week (7 September), the All-Party Parliamentary Group (APPG) on Fair Business Banking issued a report, “Scale up to level up: Reforming SME Finance”. The report…
As someone who is interested in equity and technology companies, I was excited to receive an email from the British Business Bank on the launch of the Future Fund: Breakthrough, a fund through which “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.”
However, on reading the detail, it may be of interest to only a limited number of our clients. Whilst a number of the businesses we work with are tech based and looking for equity, the minimum equity raise of £30m may be larger than many are (currently) seeking. I have therefore rounded off this blog with some additional thought of funding outside / to complement a private sector (VC or PE or Business Angel) equity raise.
Key parameters of the Future Fund: Breakthrough
Information about Future Fund: Breakthrough, including full eligibility criteria for lead investors and companies is available here. Headline details below:
|Lead investor criteria||The lead investor can be:
PKF Francis Clark
I have shared details with my colleagues across the Corporate Finance team in case they are looking at an equity raise mandates that fulfil the criteria.
Of more general applicability is the Angel CoFund. Echoing my colleague’s comments, we have had limited interaction with that fund since its inception in 2011, but that is not to say that this will not change as we move forward in this new funding environment.
In terms of sources of funding we are seeing innovative companies access alongside equity raises (from Venture Capital and Private Equity firms, including regional fund Cornwall and Isles Scilly Investment Fund), these include:
- R&D Tax Credits
- R&D grants (see my colleague’s recent blog for an overview of some of the schemes of which he is aware)
In addition to/alongside fund raising assignments for high growth potential we are also working with those businesses on their strategy discussing, for example, timings of putting an EMI scheme in place.
I know my colleagues in tax are also very busy with Enterprise Investment Scheme/Seed Enterprise Investment Scheme clearance/approval for a number of our clients.
If you would like to speak to PKF Francis Clark in connection with an equity fund raise or other support with your fast-growing innovative company please do not hesitate to contact me or your existing point of contact at the firm.