The Prince's Trust has secured £100,000 match funding from a US private investment company.
The donation from Hicks, Muse, Tate & Furst for the Trust's Business Expansion Programme will be augmented by another £100,000 from the Government.
The money will be used to fund at least 60 start-up companies run by young people, with an average investment of £3,300.
Tom Shebbeare, chief executive of the Prince's Trust, said: "Since 1983, the Prince's Trust Business Programme has helped more than 47,000 young people start their own businesses and we are very excited that this donation will help many more realise their potential."
The trust wants to fund 30,000 start-ups by 2005. It aims to raise £100 million, which the Government has pledged to match with £50 million. The funds will be used to offer soft loans, business mentors and advice to young people setting up their own businesses.