The UK is set to become the first country to launch a new venture capital funding platform aimed at boosting the growth of businesses in the digital economy.
It is the first of its kind in the world and will allow for the creation of funds and grants for entrepreneurs who have not yet secured funding.
This new venture-capital platform, called Innovate UK, will create the UK’s first public, fully public venture capital programme for small businesses.
The scheme will see Innovate fund up to $1bn of private funding and a private equity firm invest £100m in up to 200 small and medium enterprises.
The fund is a partnership between Innovate and the National Business Development Agency (NBDA).
It will provide funding to companies from the UK, Ireland, France, Germany, the Netherlands and Spain who have a vision and ambition to develop and launch new businesses.
It will also fund up-to £500,000 for small firms that have a proven track record of business growth.
“We are launching Innovate for the UK to create a platform for the development of innovative businesses in this rapidly changing economy,” said Innovate’s CEO, David Koehler.
Koehler is one of the founders of the online platform, the Startup Village, which is run by the NBDA and is a co-funding partner with Innovate.
Ivan Rogers, chief executive of the NBP, said: “I’m delighted that the UK has chosen to launch this new venture funding platform and it will be a powerful way to support entrepreneurs in the UK.
As the UK continues to move forward, we are seeing a massive increase in the number of businesses and individuals who want to start or grow a business.
These are the kinds of businesses that the Government is committed to creating, helping and encouraging, and it is our duty to help those businesses to grow.”
Innovate UK will help us to build a more inclusive economy and help entrepreneurs to realise their visions for the future.
“The Government is launching the Innovate scheme in a bid to increase the UK economy’s chances of sustaining growth.
It is aiming to raise up to £1.4bn of funding for up to 250 small and large businesses in a five-year time frame, with the fund being used to help them with the initial investment and to help the businesses grow.
A number of companies will benefit from the scheme, including the makers of the popular mobile-game, App Store, and the creators of a new online shopping site called The Store.
The UK is also set to host a series of global business fairs in 2017, as part of its bid to attract more foreign investment and businesses.