The UK Government currently invests in more than 150 start-ups.

UK Finance Minister Rishi Sunak said nationwide to thank National Health Service (NHS) workers and front-line medical staff across the country for their work in combating the coronavirus pandemic. Participate in “Applause to caregivers”. Report of the Foreign Federal Office (FCO) in London on April 16, 2020.

Torga Acmen | WPA Pool | Getty Images

The UK government is currently investing in 158 start-ups after a series of taxpayer-funded loans have been converted to state-owned equity. British Business Bank announces Tuesday.

Gig ticket app DiceFM, craft soft drink brand Gunna, and DIY computer kit provider Kano are one of the government-owned companies.

Future fund UK Treasury Minister Rishi Sunak launches As part of an effort to help a British company dysfunctional due to the blockade of Covid-19 last April.Rescue package Expanded in June last year Include companies based overseas. Startups were able to apply between May 2020 and January 2021.

The UK Business Bank, which runs the so-called Future Fund program, said it has issued £ 1.14 billion ($ 1.58 billion) worth of convertible bonds of 1,190 companies.

Convertible bonds will become shares in the next round of funding for start-ups. The theory is that this will allow the government to later get a return on its investment.

As of August 31, 158 loans had been converted to equity, indicating that the company had raised more private sector capital through a equity financing round.

Of the 158 loans converted to equity, 90 are for London-based businesses and only 4 are for Welsh businesses.

Ken Cooper, Managing Director of Venture Solutions at British Business Bank, said in a statement: .. “

“As shareholders of so many promising businesses, the Future Fund is in a good position to support and benefit from their continued growth,” Cooper added.

But not everyone thinks taxpayers should spend their money to help start-ups struggling.

Last year, the Future Fund “risks the risk of misdirecting the coveted capital to the wrong parts of the economy,” said Robin Klein, co-founder of venture company Local Globe.

The UK Government currently invests in more than 150 start-ups.

Source link The UK Government currently invests in more than 150 start-ups.

Back to top button