Virgin StartUp has announced that a new pot of £20 million in Start Ups Loan funding has been made available to support UK founders this financial year.
It marks the biggest annual funding allocation from the British Business Bank for the not-for-profit since it became a national distribution partner in 2013.
The announcement coincides with a major milestone for Virgin StartUp, which has now distributed more than £100m in Start Ups Loan funding, supporting more than 6,500 UK founders to launch businesses of all shapes and sizes across the UK.
Businesses that started life with a Start Up Loan from Virgin StartUp include sportswear brand Castore, ethical skincare business Upcircle, healthy fruit drinks brand DASH Water, AI fitness scaleup Magic AI and sustainable food subscription service Oddbox.
The non-profit says that to date, funding distributed through Virgin StartUp is estimated to have generated £550m in value to the UK economy, supporting job creation, local communities and long-term economic growth.
The figures represent a £5.50 return for every £1 invested through the Start Up Loans programme, it said, with 69% of businesses funded with a Start Up Loan still trading after five years, compared with the national average of 43%.
Virgin StartUp is also committed to its 50/50 pledge, launched back in 2019, which is a commitment to support and fund an equal number of men and women. Since the launch of that pledge, 46% of the founders who applied to Virgin StartUp and went on to get funding, have been women, with the last six months being at 50%.
Andy Fishburn MBE, managing director at Virgin StartUp, commented: “With over £20 million in Start Up Loan funding to deploy this year, we’ll be supporting and funding more founders than ever, at a time when early-stage funding has never been harder to come by. This means we can back more entrepreneurs at a critical moment for the UK economy and help turn bold ideas into sustainable, thriving businesses.
“Whether someone is launching their very first venture, building a side hustle, or ready to scale an existing business, if they’ve got an idea or a business that has been trading for up to 5 years, we’re here to support them with the funding and guidance they need to move forward with confidence.
“Looking ahead, we’re equally focused on widening access even further – backing diverse founders, championing underrepresented communities, and making sure great ideas, wherever they come from, have a genuine chance to succeed. We believe entrepreneurship should be open to everyone with the drive to build something of their own, and we’re proud to play our part in making that possible.”
Anyone accessing a Start Up Loan from Virgin StartUp is paired with a dedicated business advisor to support them through the application process and 12 months of post-funding support.
Founders are also invited to join the Virgin StartUp community which is one of the largest entrepreneurial support networks in the UK and offers founders access to 1:1 mentorship, daily support and exclusive events.
Meet ‘The Relentless Fox’ – the former NCC CIO now building Relentica