Lord Mandelson and Lord Drayson presented today in London the UK Innovation Investment Fund (UKIIF), the new vehicle that will support high growth small businesses and start ups in strategic sectors such as life sciences, clean technologies, digital and advanced manufacturing.
The fund will operate on a fund of funds structure. It means that it will not invest directly in companies, but rather invest in a small number of specialist technology vehicles with expertise and track record to invest directly in companies.
The fund was announced by the Prime Minister on 29 June as part of the Government’s strategy for Building Britain’s Future. The Department for Business, Innovation and Skills (BIS), the Department of Energy and Climate Change (DECC) and the Department of Health (DoH) will invest a total of £150m alongside private sector investment on an equal basis.
By leveraging private sector investments, the Government aims to increase its size to 1bn over 15 years in order to make it the largest technology fund in Europe.
The Government is currently undertaking due diligence on the shortlisted bids from prospective managers. The appointment will be made by Christmas, enabling the fund to start investing in early 2010.