Partner Article

Business angels welcome tech fund

Business angels have welcomed the government’s announcement of a £750m fund to support high growth technology businesses.

The British Business Angels Association (BBAA) said the fund offered important new investment for innovative businesses during the recession.

Anthony Clarke, chair of the BBAA, said he was recommending that part of the fund be earmarked for angel co-investment funds. Clarke said similar schemes had been ‘shown to be an important model to leverage extensive levers of private sector investment into start-ups and early stage technology companies’.

“This will provide a stimulus to angels across the UK to invest and syndicate alongside the fund, bringing both additional finance and business building skills and offering significant added value to these high growth technology businesses,” he said.

The fund, which was announced on Budget day this week, includes £250m to invest in low carbon business opportunities, £50m extra for the Technology Strategy Board to significantly expand its work with business and an extra £10m for UK Trade and Investment to help exporters.

Business secretary Lord Mandelson said: “Backing green, low carbon businesses and technologies will be a priority for the new fund. Ed Miliband and I are determined British business should be world leaders in the technologies and services the world will need as we use energy more efficiently and combat climate change.

“Britain doesn’t need to be pessimistic about our economic future as long as we prepare for it. The new fund is a big step forward.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .