This allows British taxpayers to own stakes in dozens of startups.
And according to the Financial Times, the announcement of the new initiative called Future Fund: Breakthrough could be no later than Wednesday.
The technology sector will be a major focus of the fund, with policies such as the new technical visa to help attract skilled workers, which are expected to stimulate investment and provide support to entrepreneurs.
Funded with government funds, the fund aims to support emerging technology companies that have the potential to outperform globally, and who need to move to the next stage of development.
Typically, these tech startups are losing money due to the need for extensive investment in research and development.
The tech founders have raised concerns that British tech startups sometimes fail to make the next leap in their development, and are instead sold to competitors abroad.
The fund risks pumping taxpayer money into companies that fail, because the majority of emerging tech companies lose their backers’ money, while only a few become world leaders.
Sunak, who was an investor in a hedge fund before entering politics, used Treasury money to invest more than £ 1 billion in 1,000 startups across the UK through an initiative called Future Fund.
This initiative, which was part of the Coronavirus Business Support Program, provided convertible loans to loss-making startups struggling to raise funds in the pandemic that rival those offered by private investors.
The new initiative Future Fund: Breakthrough targets businesses in later stages with established business models, rather than seeking to save startups.
The move theoretically helps promising companies that could boost the UK’s position in the tech industry, but which still need financial support to compete on a global scale.
Each investment ranges from tens of millions of pounds and focuses on a relatively small number of the largest companies.