British Business Bank publishes updated list of 265 companies in which the Future Fund has a shareholding
Today the British Business Bank publishes a list of 108 additional companies in which the Future Fund holds an equity stake, taking the total to 265 as at 31 December 2021. Launched on 20 May 2020, and open for applications until 31 January 2021, the Future Fund issued 1,190 companies with Convertible Loan Agreements worth £1.14bn in total. Third-party investors were required to at least match the Future Fund’s investment.
Companies in which Future Fund is now a shareholder include Organox, a medical technology company that has developed a revolutionary device for storing livers for transplant, Plum, the FinTech saving and investing platform, and sustainable fashion app Save Your Wardrobe.
The Future Fund supported innovative UK companies that typically rely on equity investment to fund their growth. By creating a bridge to the next equity funding round, the Future Fund supported these companies through a period of considerable economic disruption and now the recovery.
The scheme used a recognised financial instrument known as a convertible loan. Unlike an equity investment, there wasn’t a requirement under the convertible loan to value the company or the price of its shares, at a time when company valuations had been significantly impacted by Covid-19. Instead, the convertible loans are designed to convert into equity at the next equity funding round, converting at a discount to the price per share agreed between companies and investors in the funding round.
At 31 December 2021, 265 loans had converted into equity shares, meaning that the Future Fund holds shares in an additional 108 companies which have successfully raised further private sector capital through an equity funding round since the last update.
Ken Cooper, managing director, Venture Solutions, British Business Bank said: “The Future Fund was created to increase the flow of capital to innovative companies at the height of the pandemic, while ensuring long-term value for the UK taxpayer. We’re delighted to see so many companies already going on to raise further private sector capital. As a shareholder in so many promising businesses, the Future Fund is well positioned to share in the benefits of their continued growth.”
The British Business Bank will update the list of companies in which Future Fund has a shareholding at the end of each financial quarter – the full list is available here.
Further information on the Future Fund is available here
On 6 July 2021 the British Business Bank published data giving a final, comprehensive picture of how the Future Fund has supported businesses during the pandemic. This is available here.