Science and innovation minister Lord Drayson has said that a venture capital fund it hopes will boost investment in British technology businesses can be the largest of its kind in Europe.
The UK Innovation Investment Fund, which was announced in June, will be built up to £1bn over the next decade, the government said, as Drayson called on private sector investors to invest alongside it.
“Today is absolutely the time to invest in our most promising technology companies. We’ve had a decade of record investment in science and innovation and we’re seeing signs of recovery in the economy,” he said.
“The UK Innovation Investment Fund is an exciting proposition for institutional investors.”
A manager for the fund will be appointed next month, when the fund will also announce a first close, enabling it to commence investing in early 2010.
Drayson told Reuters that the fund “will be able to match the scale of the funds we see being raised in the US”.
It will invest in clean technology, bioscience and advanced manufacturing companies.
The government also recently backed a proposal from Chris Rowlands, a former executive at 3i Group, to establish a complementary fund providing financing for small and medium-sized companies.
© Crimson Business Ltd. 2009