Tech City UK is looking to take on more capital from the private sector as government funding declines.
The organisation received £2.112 million from the Department of Culture, Media and Sport for 2016/2017 but this figure is set to fall roughly 5% year-on-year between now and 2020, when funding will be £301,000 less than it is now, at £1.811 million.
In order to meet the anticipated shortfall, the quango is increasing the amount it takes from private sector sponsors operating in sectors like financial services, law, and technology.
Tech City UK CEO Gerard Grech told Business Insider that the organisation is doubling the amount of private income it takes. “We’re going from 10% [of total funding] to 20% this year,” he said.
When asked why government funding is falling for the organisation he oversees, Grech said: “We want to do more all the time and if that means meeting with partners that share the same values as us and share the same ambitions as us then why not, absolutely? It further validates what we’re doing.”
Grech said the majority of the money gets spent on Tech City UK programmes like Future Fifty, which is designed to provide concierge-style support to for businesses with high growth, and Upscale, which is designed to support founders of Stage A technology companies in the UK.
Grech added that other significant costs include operations, salaries, marketing, and partnerships.
Existing Tech City UK sponsors include the likes of Silicon Valley Bank, Barclays, Natwest, Oracle, and law firm Cooley.