Future Fund

This document describes an evaluation of the British Business Bank's Future Fund, a program designed to support UK-based companies with equity finance during the COVID-19 pandemic. The Future Fund aimed to assist businesses, particularly start-ups, that were struggling to access other forms of government support by offering convertible loans matched by private investors. The evaluation, conducted by RSM UK Consulting and through a multi-year assessment, employed a mixed methods approach, including desk research, interviews, surveys, and case studies, to assess the program's effectiveness and economic impact. Results suggest that the Future Fund successfully met its immediate objectives, providing rapid financial support mainly to early-stage, high-growth businesses in the technology and services sectors, and was particularly active in London. The program was efficient, clear, and filled a critical financing gap, potentially contributing £145m to the economy. However, some firms found the terms stringent, and the program's long-term impact and ability to reach very early-stage firms and address regional disparities remain to be fully assessed. The Future Fund's design and delivery were well-received, though some concerns were noted regarding the complexity of financial instruments and exclusion of tax benefits. Compared to international counterparts, the UK's scheme supported more businesses due to less strict eligibility criteria. The evaluation concludes that while the Future Fund broadly achieved its goals and supported business survival and growth, further rigorous analysis is needed to fully understand its long-term effects. **This summary was written by an AI model and therefore should not be considered a definitive summary of the report. If you are aware of inaccuracies, please email evaluation.registry@cabinetoffice.gov.uk.**

Description

• Lead department: British Business Bank
• Evaluation stage: A complete evaluation report
• Other departments: No other departments listed
• Evaluation types: Impact evaluation; Process evaluation
• Impact methods: Theory-based methods
• Theory-based methods: Other
• Process methods: Case studies; Individual interviews; Surveys and polling
• Grant information: This intervention is not distributing funding via a grant
• Government Major Project information: This intervention is not a major project
• Policies: No policies provided

Event Dates

• Event Name: Publication of final results
• Event date: October 2022

Evaluation Costs

• Cost: Not provided

Evaluation sharing

• Link(s) to published report(s): Yes
• Links to evaluation plans: No link provided
• Findings: Not provided
• Permission to share confirmed: Yes