Funding news - 01/08/2017
Chancellor Announces New National Investment Fund for Innovative Companies
A new Government fund is to be established in order to help create more tech 'unicorns'.
The Chancellor of the Exchequer, Phillip Hammond, is unveiling plans for a new National Investment Fund, designed to help innovative UK start-ups to become ‘unicorns’ – cutting-edge businesses with a value of more than US$ 1 billion.
Financing Growth in Innovative Firms is a consultation which explores how start-ups can access the finance they require for growth. It has identified a £4 billion funding gap between US and UK companies. The National Investment Fund will help to address this gap and boost business for the domestic market.
Currently, British firms also rely on funding from the European Investment Fund. A new UK-based fund would is likely to help ensure that businesses retain access to essential funding, should the UK’s relationship with the European Investment Fund cease following the UK’s withdrawal from the European Union.
The new fund could be set up as a public-private partnership or be placed fully on the government’s balance sheet to be sold-off once it has established a sufficient track record.
Speaking about the proposals, the Chancellor said:
"Britain is an innovation powerhouse and it’s vital that we make sure our cutting-edge firms have the funding they need to meet their potential and conquer new markets.
"Meeting this challenge will boost our productivity and enable us to create more well paid jobs across the UK."
Source: GOV.UK, 01/08/2017