Nigel Holland

“A taxpayer-backed tech investment initiative launched by Rishi Sunak during the pandemic has suffered a substantial financial hit. The £1.1bn Future Fund, designed to support struggling start-ups, has seen its value plummet to £799m, as per the Department for Business and Trade (DBT). The scheme initially invested £1.137bn across 1,192 companies, but losses now stand at £263m.

Only 86 companies have delivered a cash return to the Treasury, while 202 have gone insolvent. Recent figures suggest the situation may be worsening, with a further 107 businesses having collapsed. Many start-ups have cited the Fund’s strict lending terms as a contributing factor to their failure. The Government now holds stakes in 680 firms, including unconventional investments such as a sex party company and a football club. Despite the ongoing decline in value, officials maintain that the fund’s long-term performance remains uncertain.”

Quotation by Nigel Holland

  • The Future Fund, launched during Covid, has lost £263m of taxpayer money.
  • 202 of 1,192 supported companies have gone bankrupt, with 107 more failing recently.
  • The scheme converted loans into equity, leaving the taxpayer with unexpected investments.
  • Only 86 companies have returned cash, with £75m recouped in total.
  • The Government insists venture capital is a long-term game, despite the fund’s decline.