The UK Government is pumping an extra £200 million (€227 million) into a start-up technology funding scheme, to expand its scope and boost future job prospects.
The investment means the Government has pledged a total of £325 million to fledgling UK tech companies, after an earlier commitment to direct £125 million from the UK Innovation Investment Fund (UKIF) into British technology firms.
Digital and advanced manufacturing firms and companies specialising in life sciences are in-line for the additional funds, which are designed to help convince venture capitalists to back new companies by offering a degree of financial security.
The VC plan has worked so far, says Lord Drayson, the UK’s Science an Innovation minister. “Private funds have matched the Government’s investment and money can now flow into promising technology companies.
“This is just the boost these companies need.”
The UKIF was established in June 2009, and is managed by the European Investment Fund and Hermes Private Equity.
US chipmaker Intel is planning to make a similar investment in start-up US tech companies.
The firm is set to establish a $2 billion (€1.4 billion) fund, and is already discussing investment opportunities with venture capital firms, the New York Times reports.