Gov't launches £30m fund for small tech businesses

02 Dec 2008 13:43

Individual technology firms could attract venture funding of up to £2m through the government's Enterprise Capital Funds programme

Business secretary Peter Mandelson on Monday announced a £30m fund for small to medium-sized technology companies.

As part of its Enterprise Capital Funds programme, the Department for Business, Enterprise and Regulatory Reform (Berr) will make the funds available to information technology, electronics and instrumentation companies seeking investment capital. The fund will be managed by TTP Ventures.

Individual companies will be able to raise equity finance of up to £2m. Two-thirds of the fund will be supplied by the government, while the remaining £10m will be supplied by private equity.

"It is crucial that small and medium-sized firms looking to invest in and grow their businesses are able to access the finance they need," said Mandelson in a statement. "Enterprise Capital Funds provides an important source of capital for SMEs looking for equity investment, and this latest fund further demonstrates the government's commitment to support business through these difficult economic conditions."

Berr has established more than 22 funds, worth approximately £600m, in the last six years through non-departmental public body Capital for Enterprise.

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