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Government Aims For £1 Billion Venture Capital Fund To Invest In The Businesses Of The Future
29/06/2009
By Claire West
The Prime Minister has today announced the creation of the UK Innovation Investment Fund to invest in technology-based businesses with high growth potential. The new fund will focus on investing in growing small businesses, start-ups and spin-outs, in digital and life sciences, clean technology and advanced manufacturing.
The Department for Business, Innovation and Skills, with the Department of Energy and Climate Change and the Department of Health, will invest £150 million alongside private sector investment on an equal basis known as pari-passu.
It is the Government's belief that this could leverage enough private investment to build a fund of up to £1 billion over the next 10 years. The UK Innovation Investment Fund forms part of the Government's strategy for Building Britain's Future.
Gordon Brown said:
"This fund will help build Britain's future by investing in key sectors. 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. The fund will boost future UK competitiveness."
Lord Mandelson, Secretary of State for Business, added:
"In our New Industry New Jobs strategy we identified access to venture capital as one of the critical factors in developing innovative new companies in Britain. The UK Innovation Investment Fund will be a shot in the arm for the British venture capital industry. It is also a challenge to UK venture capitalists to follow the Government's lead in backing British entrepreneurs in building exciting new companies, investing in new technologies and creating jobs."
Science and Innovation Minister Lord Drayson, who has been a champion for the fund, added:
"We must safeguard the Government's record investment in the science and research base... continued on page two >
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