Future Fund approves £1.2bn in ‘Convertible Loan Agreements’ since launch

loan

The British Business Bank has published Future Fund data that gives a detailed picture of the 1,236 companies that have been approved for £1.20bn (£1,203.7m) worth of Convertible Loan Agreements since the scheme was launched on 20 May.

There have been 1,846 applications in total since the scheme was launched and the scheme closed to new applications on 31 January 2021.

This final release of monthly 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.

Data by region

The data reveals, 40% of funding approved to companies for convertible loan agreements worth £483.6m have their headquarters located outside of London.

Of the total amount of £1,203.7m, 15% 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 60% of companies, in-line with the wider market trends for equity investments. The British Business Bank’s 2019/20 Small Business Finance Markets report showed that London received 66% of equity investment by value in 2019.

Data by gender mix of senior management team

Of the 1,236 companies that have been approved and received their Convertible Loan Agreements for signature, 77% of funding is to companies with mixed gender senior management teams. Since the launch of the Future Fund more than 30 venture capital firms and angel groups have become signatories to the Government’s Investing in Women Code, alongside the Future Fund.

As part of its commitment to sign HM Treasury’s Investing in Women Code, the Future Fund will supply HM Treasury with statistics on founder gender. HM Treasury intends to publish the inaugural Investing in Women Code Report later this year.

Data by ethnicity of senior management team

Senior management teams consisting solely of ethnic minority team members and those with both ethnic minority and White team members account for 61.6% of funding to companies that have been approved for Convertible Loan Agreements so far, worth £683.5m.

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

Management Team No. of
convertible loans
approved
Value of
convertible loans approved
All-female team 15 £14.3m
All male team 334 £245.3m
Mixed-gender team 836 £886.6m
Chose not to provide data 51 £57.4m
Grand Total 1236 £1203.7m

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

Management
Team
No. of convertible loans approved Value of convertible loans approved
Solely from ethnic minorities 69 £58.4m
All white team 503 £426.4m
Ethnic minority & White team 566 £625.1m
No info given 98 £93.8m
Grand Total 1236 £1203.7m

Future Fund data by location where company applying to Future Fund is based

No. of convertible loans approved Value of convertible loans approved
East Midlands 16 £18.9m
East of England 89 £91.7m
London 696 £720.1m
North East 34 £31.7m
North West 81 £67.6m
Northern Ireland 14 £13.6m
Scotland 22 £8.6m
South East 139 £147.8m
South West 49 £33.6m
Wales 22 £11.9m
West Midlands 39 £24.5m
Yorkshire and the Humber 35 £33.7m
Total 1236 £1203.7m

 

enewsletter