Final Future Fund data shows scheme completed £1.14bn of Convertible Loan Agreements

funding

Today the British Business Bank publishes data that gives a final comprehensive picture of how the Future Fund has supported businesses during the pandemic.

The data shows that 1,190 companies have had their applications completed to access £1.14bn (£1136.7m) worth of Convertible Loan Agreements funded by the Future Fund since the scheme was launched in May 2020. There have been 1,851 applications in total since the scheme was launched and the scheme closed to new applications on 31 January 2021.

This final release of data shows where companies are based across the UK and the composition of the senior management teams by gender and ethnicity. This data is self-reported by the companies applying to the Future Fund.

It also gives an overall sector breakdown of investment and the size range of investments.

Data by region

The data reveals, 41% of completed funding through Convertible Loan Agreements worth £463.7m have their headquarters located outside of London. Of the total amount of £1,136.7m, 14% is to companies headquartered in the South (South East and South West), 11% in the North (North West, North East and Yorkshire and the Humber), 8% in the East of England, 4% in the Midlands (East Midlands and West Midlands) and 3% in the Devolved Nations (Scotland, Wales and Northern Ireland). London accounts for 59% of companies, in-line with the wider market trends for equity investments. The British Business Bank’s 2020/21 Small Business Finance Markets report showed that companies outside London received 44% of equity investment by value in 2020.

Data by gender mix of senior management team

Of the 1,190 companies that have been have completed their funding through Convertible Loan Agreements, 78% of funding is to companies with mixed gender senior management teams. As a consequence of investing alongside Future Fund, 31 venture capital firms and angel groups have become signatories to the Government’s Investing in Women Code.

Data by ethnicity of senior management team

Senior management teams consisting solely of team members from a Black, Asian or Other Ethnic Minority background and those with team members from a Black, Asian or Other Ethnic Minority background and White team members account for 61.6% of funding received through Convertible Loan Agreements, amounting to £646.5m.

Data by sector

Of the 1,190 companies that have completed their Convertible Loan Agreements, 38% are technology and IP-based businesses with a value of £382.8m (34%) in funding and 35% are Business and Professional services firms with a value of £471.1m (41%).

Data by size of investment

Over 50% of convertible loan agreements were valued between £125, 000 and £500,000.

Future Fund data by gender of company senior management team (self-reported by applicant)

Management Team No. of
convertible loans
completed
Value of
convertible loans

completed

All female team 16 £15.1m
All male team 314 £219.1m
Mixed gender team 811 £850.2m
Chose not to provide data 49 £52.2m
Total 1190 £1136.7m

Future Fund data by ethnicity of company senior management team (self-reported by applicant)

Management
Team
No. of

convertible

loans completed

Value of

convertible loans completed

Solely from Black, Asian or Other Ethnic Minority background 62 £55.7m
All White team 481 £403.7m
Black, Asian or Other Ethnic Minority background & White team 553 £590.8m
Chose not to provide data 94 £86.5m
Total 1190 £1136.7m

Future Fund data by location of company receiving convertible loan

  No. of

convertible loans completed

Value of

convertible loans completed

East Midlands 18 £17.1m
East of England 89 £95.7m
London 660 £673.0m
North East 31 £28.0m
North West 84 £61.6m
Northern Ireland 13 £11.6m
Scotland 23 £8.3m
South East 132 £125.7m
South West 47 £30.8m
Wales 25 £18.7m
West Midlands 33 £27.2m
Yorkshire and the Humber 35 £39.0m
Total 1190 £1136.7m

Future Fund sector breakdown compared to the wider market

  Sector split by

CLA number

Sector split by

CLA investment amount

  Wider Market Future Fund Wider Market Future Fund
Technology/ IP-based businesses 40% 38% 46% 34%
Business and Professional services 24% 35% 29% 41%
Industrials 16% 11% 10% 9%
Leisure and Entertainment 5% 3% 2%              4%
Retail 3% 5% 2% 4%
Personal Services 4% 5% 2% 4%
Media 3% 2% 2% 2%
Other 6% 1% 6% 1%

Future Fund sector breakdown

Sector

 

No. of

convertible loans completed

Value of

convertible loans completed

Technology/ IP-based businesses 452 £382.9m
Business and Professional services 414 £471.1m
Industrials 129 £107.9m
Leisure and Entertainment 32 £43.0m
Retail 60 £48.7m
Personal services 60 £48.3m
Media 26 £19.8m
Other 17 £15.1m
Total 1,190 £1,136.7m

Future Fund breakdown by size of Convertible Loan Agreement (Future Fund amount)

 

Investment Range

  No of companies
£125,000 – £500,000   600
£500,001 – £1,000,000   260
£1,000,001 – £2,500,00   190
£2,500,001 – £5,000,000   140
Total   1,190

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