The government is to invest £150m in high growth technology businesses, Gordon Brown announced yesterday.
The UK Innovation Investment Fund will focus on growing small businesses, start-ups and spin-outs in the digital, life sciences, clean tech and advanced manufacturing sectors.
The investment total will be matched by the private sector, and according to the government, this could lead to enough private investment to build a £1bn fund over the next decade.
“This fund will help build Britain’s future by investing in key sectors,” said Gordon Brown.
“It will provide crucial support for our most promising start-ups and existing small companies just when they need it most. Venture capital finance is the lifeblood of innovation and crucial to ensuring the commercialisation of the discoveries coming out of our research base.”
According to government figures there are 1,093 venture capital backed tech companies in the UK employing more than 40,000 highly skilled workers.
Business secretary Lord Mandelson said the government had identified access to venture capital as one of the ‘critical factors’ in developing innovative UK ventures.
He added: “The [fund] will be a shot in the arm for the British venture capital industry. It is also a challenge to UK VCs to follow the government’s lead in backing British entrepreneurs in building exciting new companies, investing in new technologies and creating new jobs.”
© Crimson Business Ltd. 2009