£150m fund to boost UK tech investment

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The Independent Online

The Government has pledged £150m to a new venture capital fund, planned as Europe's largest, as it looks to kick start British technology investment and the ailing business sector.

The Government hopes to build up the fund to £1bn over 10 years and has been calling on private sector investors to invest alongside it in the UK Innovation Investment Fund, said the Science and Innovation minister Lord Drayson. A fund of funds manager will be appointed next month, when the fund will also announce a first close.

The UK is the second largest venture capital market in the world but only receives 4 per cent of investors' funds, compared with 30 per cent in the United States, the leading market.