New funding available for high-tech firms

Spin-offs from university projects and other pre-commercial firms to be considered

Brown: boosting innovation

Innovative technology firms will be able to apply for funding from a new £200m innovation fund as part of an attempt to overcome the drought in capital lending, prime minister Gordon Brown announced yesterday.

The UK Future Technologies Fund will invest in technology-based businesses where there are significant growth opportunities, driving the economy forward and creating skilled jobs.

Brown said yesterday: "This fund, seeded by the government, is bringing private venture capital to growing enterprises. It is already providing £125m of funding to high-tech, low-carbon businesses. From today, a further £200m will be available for life sciences, digital and advanced manufacturing."

The fund will look to target small growing businesses, start-ups and spin-outs, including those at pre-profit and pre-revenue stages of development.

Richard Pelly, chief executive of the European Investment Fund, who will manage the fund for the government, said: "Evidence shows that venture capital-backed companies significantly outperform other companies in terms of their ability to create wealth and generate the spillover benefits, including export performance and the creation of high-skilled jobs that are vital to the economy."