Virgin StartUp has announced a new £20m funding pot to support UK entrepreneurs in the coming financial year. This is the organisation’s largest annual allocation since partnering with the British Business Bank in 2013.
The funding will be made available between April 1, 2026 and March 31, 2027 through the Government-backed Start-up Loan Scheme and is designed to make it easier for aspiring founders across the UK to access early-stage funding.
The announcement also marks a significant milestone for Virgin StartUp, which has now provided more than £100 million in start-up loans since the partnership began more than a decade ago. During that time, the nonprofit has helped more than 6,500 entrepreneurs start and grow businesses across a wide range of industries.
Companies that received early support under the program include well-known consumer brands and technology companies such as sportswear label Castore, ethical skincare company Upcircle, drinks brand DASH Water, AI fitness company Magic AI and sustainable food subscription service Oddbox.
Virgin StartUp says loans made under its program have generated an estimated economic value of £550 million for the UK, representing a return of £5.50 for every pound invested.
The organization also reports that 69 percent of the companies supported by its startup loans are still in business after five years, significantly higher than the national average of 43 percent, suggesting that founders who participate in the program are around 60 percent more likely to survive their first few years in business.
Andy Fishburn MBE, chief executive of Virgin StartUp, said the new funding would allow the organization to support more founders at a time when early-stage capital is becoming increasingly difficult to raise.
“With a start-up loan of over £20 million to be delivered this year, we will support and fund more founders than ever before,” he said. “Early stage funding has never been harder to come by, so this investment will help entrepreneurs turn bold ideas into sustainable businesses at a critical moment for the UK economy.”
Fishburn added that the program is open to individuals starting their first business, starting side businesses or starting young companies that have been in business for up to five years.
Beyond financial support, entrepreneurs who receive loans are also matched with dedicated business advisors who guide them through the application process and provide mentorship during the first year after funding.
Participants will also gain access to Virgin StartUp’s wider entrepreneurial network, which offers mentorship, peer support, training opportunities and industry events designed to help founders build and scale their businesses.
The program also places a strong emphasis on improving access to entrepreneurship for underrepresented groups. In 2019, Virgin StartUp launched a 50/50 commitment, committing to funding equal numbers of male and female founders.
Since the inception of this commitment, 46 percent of successful recipients of funding under the program are women. In the last six months, female founders made up exactly half of all successful applicants.
Louise McCoy, managing director of start-up loan products at the British Business Bank, said the partnership with Virgin StartUp continues to play an important role in supporting the UK’s entrepreneurial ecosystem.
“We are pleased with the success that Virgin StartUp continues to achieve as a partner in the Start Up Loans program,” she said. “Their commitment to supporting an equal number of male and female founders aligns with our own goals.
“Together we help thousands of businesses across the UK access the affordable finance they need to start or grow.”
The new £20m funding allocation comes at a time when many entrepreneurs are facing tighter venture capital markets and rising borrowing costs, making government-backed lending programs an increasingly important source of early-stage funding.
Virgin StartUp said the additional funding would allow it to further expand its reach across the UK and ensure more founders from diverse backgrounds and communities had access to both capital and expert advice.
Fishburn added that expanding access to entrepreneurship remains central to the organization’s mission.
“We believe entrepreneurship should be open to anyone who has the drive to build something of their own,” he said. “Our goal is to ensure that great ideas, no matter where they come from, have a real chance of success.”
