The Treasury is set to expand a coronavirus bailout scheme aimed at supporting British start-ups to include those that have been blocked after moving their headquarters overseas to tap US investors.
The government is expected to end up with stakes in scores of the UK’s start-ups under its Future Fund programme, which offers loans of up to £5m that can convert into equity stakes in promising tech businesses that are struggling to survive the lockdown.
The scheme is now set to be expanded, according to people familiar with the matter, to allow more start-ups to join given the strong demand in its first month in operation.
The Future Fund has so far been open only to companies incorporated in the UK, although this has meant that British entrepreneurs who have moved their legal headquarters overseas to raise funds from international investors have been left out.
Treasury officials have raised concerns