The government has provided £200 million of additional funding via the British Business Bank to support innovative start-ups and small firms that require finance to grow.
The government said the extra funding is intended to support high-growth firms "as the UK leaves the EU and the relationship with the European Investment Fund changes".
The British Business Bank will provide funds through its venture capital and growth finance funding partners. This type of funding has traditionally been sought by fast-growing firms in the science and technology sectors.
"The UK is creating more start-ups and attracting more venture capital funding than any other European country, but we want to do more to ensure our small businesses and entrepreneurs can thrive," said Exchequer secretary Robert Jenrick.
"That's why we are injecting a further £200 million into the British Business Bank, specifically to back businesses that are starting out and scaling up."
Business minister Kelly Tolhurst said: "We are fully committed to supporting small businesses to succeed as part of our modern Industrial Strategy, while building the UK's status as one of the best places to start and grow a small business. This funding, supported by the government-backed British Business Bank, will play a key role in supporting innovative firms access the finance they need to grow and thrive."
Keith Morgan, ceo of the British Business Bank, said: "We welcome HM Treasury's confirmation today that this allocation of £200 million is now available to increase provision of much-needed scale-up capital for innovative businesses across the UK. We look forward to putting the funding to good use through our delivery partners to enable such businesses to get the funding they need to grow and prosper."
The British Business Bank currently provides more than £5.9 billion of funding to 82,000 smaller businesses.
Written by Rachel Miller.