UK Considers Aid Package to Startups

The UK startup industry could see some help heading its way soon as the government is considering an aid package to help companies survive the crisis; one option being considered is to offer convertible loans to be repaid by the businesses after the crisis, or to be converted into equity stakes owned by the state; this option would also require VC firms matching government investments in order for the program to get around state aid rules; “Early stage businesses, by their very nature, are not generally suited to straight debt finance,” B-North’s CEO and Founder Jonathan Thompson tells FinTech Futures. “If such a scheme is executed well, it has the potential to sustain or even accelerate the UK’s position as an innovative hotbed, particularly for fintech.”; the government is also considering grants and tax credits as they try to figure out the best way to save one of the hottest fintech markets in the world. Fintech Futures

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