The National Wealth Fund Supporting Unicorn Startups in the United Kingdom
The UK Government recently announced a new National Wealth Fund to drive economic growth and attract large private sector investments. The fund has targeted investments for inducing high growth of industries, along with investments in creating an environment where most unicorn startups will thrive.
Strategic Investments in Growth Areas
Some £7.3 billion from the state will be invested into the National Wealth Fund, securing upwards of three times that amount from private investors. This fund will focus on green and high-growth industries such as green hydrogen, industrial decarbonisation, and gigafactories. The aim is not only to accelerate growth but also to set up the UK as a world leader in sustainable industrial activities.
Mark Carney also emphasized that infrastructure investments are the main enabler in creating competitive, low-carbon industries. “The smart use of public investment via the National Wealth Fund can kick-start economic growth and crowd in private capital,” he said, backing up the government’s vision to create most unicorn startups in these sectors.
A Collaborative Approach to Investment
The National Wealth Fund will bring together a range of key institutions, from the UK Infrastructure Bank and the British Business Bank to drive these investments. Chancellor Rachel Reeves added: “We need to go further and faster if we are to fix the foundations of our economy to rebuild Britain and make every part of our country better off.”
It is a collaborative approach that unlocks billions of private investments, ensuring maximum returns to the taxpayers. The emerging industry focus of the fund will also create thousands of jobs in support of transitioning to a cleaner economy and allow the growth of most unicorn startups across the UK.
A New Era of Economic Prosperity
The establishment of the National Wealth Fund is a critical milestone in the Government’s efforts to reinvigorate the UK economy. The fund will align public and private investments in support of developing those industries that will drive economic growth into the future. Rhian-Mari Thomas, the Green Finance Institute’s CEO and Taskforce Chair, commented: “The fund will herald a re-shaping of the way public and private sectors work together. The National Wealth Fund will provide private investors with the confidence needed to fund the technologies and infrastructure required to drive growth and create new jobs across the UK.”
Starting a Business in the United Kingdom?
The National Wealth Fund’s role in supporting the next wave of high-growth businesses, which could well be the UK’s most successful unicorn startups, is taking shape as the Government presses ahead with these plans. Would you like to set up your very own unicorn startup in the UK? At 3E Accounting, we offer end-to-end corporate services to help you sail smoothly through the complexities of business formation and growth. Get in touch with 3E Accounting today for more information.
