Government doubles investment for coronavirus startups
The government has doubled its investment to support startups borne out of the coronavirus crisis.
Business secretary Alok Sharma has today announced the government is doubling investment in the Fast Start Competition to £40m.
The programme was launched in April and is being managed by Innovate UK. It is part of a £211m investment package to encourage innovation.
Its main aim is to fast track the development of innovative businesses that have developed amid the pandemic.
Projects to benefit from the funding include I3d Robotics, a virtual reality training platform for surgeons. Elchies Estates is setting up virtual farmers’ markets to replace traditional markets which have had to close due to Covid-19.
Sharma said: “The coronavirus crisis has created challenges that impact the way we live, work and travel but has also prompted a wave of new innovations as businesses look at ways to solve some of the challenges facing our world today.
“This funding will support UK start-ups to deliver potential solutions, services and ways of working and help ensure the long term sustainability of these businesses.”
Innovate UK received a record number of applications – over 8,600 – and will distribute investment to more than 800 projects.
Dr. Ian Campbell, executive chair of Innovate UK, said: “The ideas we have seen can truly make a significant impact on society, improve the lives of individuals, especially those in vulnerable groups and enable businesses to prosper in challenging circumstances.”
The government also launched its £500m Future Fund today, to help startups excluded from the Coronavirus Business Interruption Loan Scheme (CBILS).
It is designed to provide support through government loans ranging from £125,000 to £5m, subject to match-funding from private investors. However entrepreneurs and investors have raised concerns it will freeze out startups as the terms favour VCs over private investors.