Lead investor eligibility criteria
Companies raising an investment round with the support of Future Fund: Breakthrough will require a lead investor to meet one of the criteria below:
- Any fund managed or advised by an FCA (or equivalent) authorised firm with private sector investment making up greater than 50% of the total fund size and who is currently managing an active fund greater than £100m. The fund must have raised capital from at least three independent LPs (or equivalent) and the fund must have a written investment strategy that aligns with the FF:B investment strategy
- Any fund or investment vehicle with an appropriate investment strategy, managed or advised by a fund manager which has applied to and obtained an investment from a member of the British Business Bank group. For example, those supported by British Patient Capital and by the Enterprise Capital Funds programme.
- Other equivalent investment vehicles i.e. those with greater than £100m of investment capital, a broad range of independent investors, and an appropriate investment strategy, where these have been approved by FF:B.
Following the initial application the lead investor will be required to share an investment paper with British Patient Capital setting out the rationale for making the investment. The paper should include information about valuation, the business plan and any follow-on funding expectations.
The lead investor will be subject to reputation and customer due diligence checks and be required to share any legal and, financial due diligence reports prepared on the company with British Patient Capital. The lead investor will also be expected to contribute a significant amount to the investment round.
Company eligibility criteria
- The company receiving investment should be UK based (UK incorporated) with significant UK operations (meaning at least half of its overall employment base and half of its research employees are based in the UK).
- The company must be carrying out R&D activity in the UK by meeting all three of the following criteria:
- R&D spending (as defined by pre-set accounting rules) will have been at least 10% of total operational cost base on average over the last 3 years or at least 15% in one of the past 3 years.
- Company is developing defensible intellectual property in the UK which they expect to be the company’s main revenue source.
- Company intends that 20% or more employees will be carrying out research for at least 3 years from the date of investment, in roles that require a relevant master’s degree or higher.
- The company must have raised at least £5m of equity investment from third-party investors in previous funding rounds in the last five years prior to FF:B investment.
- The company must be raising a minimum investment round size of £30m.
If you are an investor and have a question about Future Fund: Breakthrough which is not covered in the FAQs you can contact British Patient Capital at email@example.com.