Future Fund now supports UK startups headquartered abroad
UK businesses that needed to set up entities for foreign investments are now eligible for the scheme
The Future Fund will now be accessible to early-stage businesses that are seen as British but have bases in the US, such as those that have moved to tap into overseas investment.
Accelerators programs like US-based Y Combinator often requires firms to set up an American entity in order to receive financial support or mentorship and access deep international networks.
With the expansion of the Future Fund, these companies can now access the financial support they need to come out of lockdown, but applicants will still need to prove that at least half of their workforce is based in the UK and that it makes at least 50% of its revenues in the country, according to the Treasury.
"This change means that those startups who have strived to be the very best, and taken opportunities to grow their business, will be able to benefit from our world-leading Future Fund," said chancellor Rishi Sunak.
The commitment to expand the Future Fund to cover firms operating abroad was welcomed by the founder of Tech London Advocates, Russ Shaw, who said that startups "shouldn't be punished for their global expansion". "It is encouraging to see the government start to address the startups that fell through the gaps of the original support measures," he said. "The £320m that has already been invested by the Future Fund is an invaluable cash injection for British startups. "However, it also reflects the scale of the challenge facing entrepreneurs across the country. The Future Fund remains oversubscribed and startups are on the frontline of an unprecedented economic crisis. We must remain relentlessly focused on providing startups with the economic support they need to survive it ." With the pandemic having an almost instant impact on most businesses, the Future Fund was widely praised and exceedingly popular. But it hasn't been without problems, as many startups found it difficult to access and a number of elements had to be changed to help early-stage businesses.
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