Government offers £30m to fund tech firms' growth

Business secretary Peter Mandelson wants to help technology SMEs

Mandelson: SMEs need access to finance

The government has offered £30m to help small technology firms to grow their business.

The fund, announced yesterday by business secretary Peter Mandelson, will look to invest in IT, electronics and instrumentation companies. The cash, part of the wider Enterprise Capital Funds (ECF) programme, will be managed by TTP Ventures, an independent technology development advisory firm.

ECFs are designed to help small and medium-sized enterprises (SMEs) that have a high growth potential to raise equity finance of up to £2m where they would otherwise struggle to find such support from investors.

"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.

"ECFs provide 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."