Business Secretary Lord Mandelson announced the creation of an Innovation Investment Fund to invest in technology-based businesses with high-growth potential.
The new scheme will be kick-started with a £150m commitment from BIS, the Department of Energy and Climate Change and the Department of Health. This will be matched by private sector investment.
Jo Oliver from Octopus Ventures says it will provide a “timely injection of capital into UK technology businesses, thereby supporting and encouraging innovation, and entrepreneurialism”.
Oliver adds: “Technological leadership is a critical element of the UK’s future competitiveness from an infrastructure perspective, as it seeks to diversify away from a financial services dominated economy.
“Furthermore, investment in the technology sector, at a time of widespread disruption in the capital markets and economic uncertainty, will provide UK companies with the necessary boost in capital they deserve paving the way for global leadership in next generation technologies.”