Government wants £1 billion fund for tech businesses

The government has created the UK Innovation Investment Fund to invest in technology-based businesses, and believes it can create a fund of £1 billion over the next 10 years.

With the help of the Departments of Health and Energy, the Department for Business, Innovation and Skills will initially invest £150 million alongside private sector investment on an equal basis.

The venture capital fund will focus on small businesses and start-ups concerned with the digital sciences, life sciences, clean technology and advanced manufacturing.

“This fund will help build Britain’s future by investing in key sectors,” said Prime Minister Gordon Brown in a statement.

“It will provide crucial support for our most promising start-ups and existing small companies when they need it most.”

The UK Innovation Investment Fund will work using a ‘Fund of Fund’ structure, where money is not invested directly in companies but rather a number of specialist technology funds.

These specialist funds have the ‘expertise and track record’ to invest directly in businesses.

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