BVCA proposes £500m early-stage funding facility

BVCA recommended the proposed funding go towards early-stage businesses operating in the digital, biotechnology and life sciences sector to support them during the coronavirus crisis.

The submission proposes a bridge funding facility in the form of a convertible loan of up to £5m per company, to be supplemented by existing investors. The capital would be deployed by the British Business Bank.

The proposal suggests that without such funding, the coronavirus crisis will deplete the amount of capital required for small companies to become self-sustaining businesses. It suggests financing from the private sector is becoming increasingly unavailable and points out the businesses mentioned do not meet the criteria of regular commercial lenders, therefore putting these companies' intellectual property and patents at risk.

Since April 2015, 660 early-stage businesses have received private capital investment in the UK, according to Unquote Data.

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• Topics
• Regulation
• Investments
• UK / Ireland
• United Kingdom
• BVCA
• healthcare
• coronavirus