New partners for UK spin-outs

Local Partnerships has launched its Technology Spin-Out Fund, which will provide loans between £250,000 ($425,000) to £1m ($1.7m). The loans are aimed at helping spin-outs gain access to finance that would otherwise be unavailable to them in the commercial market. The company expects loans to be available from summer 2014 and to average £500,000 ($850,000).

To be eligible for a loan, spin-outs must have already launched and provide technology either to help deliver and improve health and social care services or to make organisational efficiencies, such as integrating patient care records or updating systems and software.

Local Partnerships is a UK-based company jointly owned by Her Majesty’s Treasury and the Local Government Association and aims to help public service providers save money and improve service delivery. The Technology Spin-Out Fund is worth a total £6m ($10m), with half of the money being provided by the UK Department of Health and Big Society Capital, respectively.

Big Society Capital is an independent financial institution, launched in 2012 with £600m ($1bn) in capital to develop the social investment market in the UK. Its funding comes from dormant English bank accounts (£400m, i.e. $680m) and an equity investment from the four main UK high street banks (£200m, i.e. $340m).

Nick O’Donohoe, Big Society Capital’s chief executive officer, said: “Health and social care services in our communities are under strain. But the growing number of social enterprises delivering these services is bringing much needed innovation to help improve care. Simple things like providing mobile technology to community nurses and GPs can help cut down paperwork, and mean there is more time spent with patients. This fund will help provide the finance to make these sorts of changes happen by supporting social enterprises wanting to use technology to become more efficient.”