UK government aims to raise £1bn for innovation
The UK prime minister has launched a new venture capital fund that is hoped to raise £1bn of investment for businesses
Announced yesterday (29 June 2009), the Innovation Investment Fund has been created specifically to help small businesses and start-ups in the technology sector to secure the UK’s economic future. The fund will be looking to invest in growing businesses within the digital and life sciences, clean technology and advanced manufacturing sectors.
The newly formed Department of Business, Innovation and Skills along with the Department of Energy and Climate Change and the Department of Health will invest £150m with additional funding coming from the private sector. The UK government believes that the fund could raise up to £1bn for investment over the next decade.
Gordon Brown, speaking at the launch, 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.’
Science and innovation minister Lord Drayson added: ‘We must safeguard the government’s record investment in the science and research base over the past decade. We cannot afford to lose out on the wealth this investment can yield and we will need this wealth to continue our sustained investment in research.’
The announcement was welcomed by the CEO of British Venture Capital Association Simon Walker, who said: ‘The BVCA is immensely encouraged by this venture capital initiative. The fund offers an exciting economic incentive for more than a thousand young venture-backed companies and the ideas and jobs which they represent.’
The launch of comes as the government publishes its new plan, Building Britain’s Future, which outlines its vision for creating a stronger, more prosperous society.