Mon Mar 01 2021
Rishi Sunak: “FinTech is one of the UK's great success stories and will help us seize new opportunities around the world”
According to leaked reports from the upcoming budget, UK Chancellor Rishi Sunak is likely to announce a dedicated, £375m fund to aid and invest in the countries fastest growing tech start-ups.
The fund, according to the leak, will be known as the ‘Future Fund: Breakthrough with the ‘official’ announcement expected on Wednesdays budget, the result of which will be taxpayers owning stakes in several tech start-ups.
The new scheme is to be aimed at firms with a potential to boost the UK’s tech reputation but currently lack the funds to compete in a global market.
Looking at the model for many of these firms, a lot are currently having to make a loss due to the need for investment in R&D. The investments made through the new fund will be in the range of “tens of millions of ponds” and will also be matched by private equity investors who will be invited to take part.
The plan, rather than just focussing on all start-ups struggling post-COVID, will be to invest in a small number of companies with established business models who just need help to reach the next level.
It’s thought the tech industry will focus heavily in the upcoming budget, with the Chancellor last week commenting to say that he’d be launching a new tech visa programme to help said firms attract the highly skilled workers they need.
Now we've left the EU and taken back control of our borders, we want to make sure our immigration system helps businesses attract the best talent from around the world
A similar but separate scheme has been running since April last year, with the Government investing over £1bn so far in 1,000’s of start-ups through their ‘Future Fund’ initiative. That fund was part of the Governments COVID response, offering loans to start-ups struggling in the pandemic with ta least 37 firms converting the load into equity in their business.
Currently the UK holds around 10% of the global market share in ‘Fintech’ with Sunak wanting to increase that significantly.
FinTech is one of the UK's great success stories and will help us seize new opportunities around the world. We must now build on our global reputation for fostering innovative start-ups and ensure firms can access the talent, finance and support they need to scale up here in the UK.
Mon Mar 01 2021