Banking giant Barclays have today announced that they are giving £100m worth of investment to small digital businesses as part of their first fast growth technology fund.
Small businesses who focus in the technology sector can apply for a loan of up to £5m which is repayable over three years.
‘‘This new fund offers a welcome boost to growing UK technology firms, and will provide a catalyst for their development into larger companies. It is part of our plans to deliver the kind of pro-growth financial backing for UK business that US firms already enjoy,’’ said Ashok Vaswani, chief executive of Barclays personal and corporate banking.
Barclays state that initiative has been set up in response to the staggering fast growth of technology-focused SMEs in the United States. Barclays state that fast-growing technology firms develop much more rapidly than the 15 year average of traditional businesses, which is why the lending firm also includes access to debt finance within the £5m loan.
The lending corporation have thoroughly researched the potential of small technology firms and digital start-ups. In February, Barclays released a report which stated that the UK tech business is set to grow four times faster than the nation’s GDP in 2015.
‘‘Entrepreneurs and SMEs are the life blood of the UK economy and the technology sector is an incredible incubator for many of these talented individuals and businesses. The rapid growth we’ve seen in the UK rivals the activity and dynamism of Silicon Valley with record levels of investment from the US into London-based technology firms in particular,’’ continued Vaswani.