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Prime Minister's £1bn Scale-Up Fund faces call to include listed companies

Prime Minister Andy Burnham's £1bn Scale-Up Fund for UK science and technology companies, announced this summer, is facing calls to extend eligibility to listed growth companies.

  • Prime Minister Andy Burnham announced a £1bn Scale-Up Fund for UK science and technology companies over the summer.
  • The fund aims to address a shortage of scale-up capital for innovative British companies.
  • There is uncertainty whether the initiative will include companies on public markets alongside private counterparts.

Prime Minister Andy Burnham announced a £1bn Scale-Up Fund for UK science and technology companies over the summer. The initiative aims to provide scale-up capital for Britain's innovative companies, addressing a perceived shortage in the country.

Plans involve establishing a British Business Bank-backed investment vehicle, supported by some of the UK's largest pension providers. This is intended to direct long-term capital towards fast-growing science and technology businesses.

However, Danny Lopez, chair of the Aquis Stock Exchange and CEO of Glasswall, has urged policymakers to consider public markets. He argues that listed growth companies should not be excluded from the fund, stating that if the ambition is to back high-growth British companies, eligibility should not depend on ownership structure.

Lopez suggests that excluding listed companies could penalise them for the transparency and governance required by a public listing. He highlights that public and private markets are complementary parts of the same growth ecosystem, referencing the Mansion House Compact's recognition of investment in unlisted assets, which included companies on registered UK growth exchanges.

Why this matters: The Scale-Up Fund aims to strengthen Britain's scale-up ecosystem by providing investment for science and technology companies, potentially driving productivity and creating skilled jobs.

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