The fund, in particular, will focus on Venture Capital backed technology based small firms, start-ups and spin-outs, operating in the field of digital and life sciences, low carbon, clean technology and advanced manufacturing.
Capital for Enterprise Limited (CfEL), the company established by BIS to manage Government’s venture capital fund investments, is now seeking proposals from Managers.
In order to be selected, the managers must have a proven track record of selecting technology focused venture capital funds with a significant UK focus.
The Government will invest £150m alongside private sector investment on a £1 for £1 basis.
According to BIS, the ambition is to leverage private investment to create a £1bn 10 year fund.
Commenting on the Government’s decision to create the fund, Simon Walker, Chief Executive of the British Private Equity and Venture Capital Association (BVCA), was reported as saying: “I am delighted that ministers have accepted a model on which the BVCA has campaigned for more than two years and which has been supported recently by others including the CBI and NESTA.
“I am convinced that this scheme can make a real difference provided it is implemented with the urgency that it deserves. Venture capital should be in the vanguard of economic recovery in Britain and it now has the chance to move from the relative fringe in economic thinking squarely to centre stage”.