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Government opening up new routes for small and
growing businesses into the defence sector.
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British innovators who can create the tech of tomorrow for UK
Armed Forces sought.
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Backed by Ministry of Defence's commitment to spend an
additional £2.5 billion through to May 2028, taking total
spend with small and medium enterprises to £7.5 billion.
The search for the UK's next defence unicorn has kicked off with
the launch of a bespoke £20 million fund to offer accelerated
contracts to small, innovative British startups who have had
limited or no business with the Ministry of Defence.
The fund is part of the government's commitment to make Britain
the best place to start and grow a defence business. A unicorn
company is a privately held start up valued at over US$1 billion.
The contracts agreed through the fund will help accelerate new
defence technology to the UK's Armed Forces and gives exciting
new companies the foundation and confidence to raise private
capital to expand more rapidly. To access the fund,
businesses must be fully or part UK-owned.
Speaking to defence industry and innovators at the annual ADS
dinner yesterday (Tuesday), Defence Secretary MP celebrated that the UK has
some of the best big defence businesses in the world - many of
which started decades ago with an idea - and have grown to create
thousands of good jobs, thriving
communities and strengthened Britain's national
security.
As set out in the Defence Industrial Strategy, defence is an
engine for growth, and small businesses are the backbone of UK
defence, bringing the innovation, agility and fresh thinking that
UK Armed Forces need to transform and stay ahead of increasing
and evolving threats.
Defence Secretary MP said:
I am determined to make Britain the best place in the world to
start and grow a defence business, and our military the fastest
innovating in NATO.
Backed by our record sustained increase in defence spending, we
are delivering good jobs and growth across the UK by opening up
new routes into the defence sector, giving small British-based
businesses the jumpstart they deserve.
If our entrepreneurs are willing to take chances, we must be
willing to take them too. This is about a Britain that rewards
risk takers and innovators and gives people the belief that this
government will back them.
This work demonstrates how the government is supporting the next
generation of defence leaders and innovators by backing the
British defence tech sector as the Ministry of Defence delivers
on the Strategic Defence Review commitment to make the UK Armed
Forces the most innovative military in NATO.
Contracts awarded through the new fund will be driven by the
requirements of the UK Armed Forces, led by UK Defence Innovation
(UKDI). UKDI will lead the search for the best UK technology to
exploit which is broken into sets of technology and capability
themes, including AI, Machine Learning & data science;
robotics & autonomy and Enhanced Precision Weapons
The fund, which comes alongside the £400 million ringfence for
novel technology and the commitment to spend an additional £2.5
billion with SMEs through to May 2028 - taking MOD's total SME
spend to £7.5 billion - is in addition to a new ‘Dragon's Den'
style event for Defence tech companies. The event aims to provide
seed funding for new and novel ideas at an earlier stage of
development, before businesses have got off the ground and will
bring in the MoD's Defence Investors' Advisory Group - the first
of its kind - to connect companies to private financing.
These efforts are part of the Defence Secretary's drive to ensure
the benefits of the government's record sustained increase in
defence spending can be captured by aspiring British
entrepreneurs, and will helps to ensure those with exciting ideas
and innovations that benefit UK warfighters aren't locked out of
the defence sector because of a lack of funding or
contracts.
The Ministry of Defence has introduced new “Lite” Enterprise
Agreements to support software and AI companies grow by reducing
commercial barriers. These new agreements with companies
including Adarga, Hadean, Oxford Dynamics and WhiteSpace were
announced last year when MP became the first Defence
Secretary to close trading at the London Stock Exchange.
The search for defence's next unicorn comes as the Ministry of
Defence launch the new Office of Small Business Growth to make it
easier for SMEs to navigate the MOD procurement system and bring
in new suppliers. The new office recognises that defence
procurement has been too slow and complex to navigate, and will
help to resolve these challenges to deliver real change to how
the MOD procures - breaking down barriers and opening new avenues
for innovation to ensure that SMEs can play a vital role in
making Britain secure at home and strong abroad.
The government is delivery on the UK's Defence Industrial
Strategy, published last year - backing British jobs, British
industry and British innovators.
