The Department for Business, Innovation and Skills is now taking the next step towards setting up the UK Innovation Investment Fund (UK IIF) – a venture capital fund of funds to support the UK’s technology companies – just a month after securing cornerstone investment for the Fund.

The Capital for Enterprise Ltd will release a Request for Proposals (RFP) for prospective Fund of Fund managers for UK IIF, this will be a key milestone in delivering the Fund as it sets out parameters for it as well as detailing the information expected from prospective Fund of Fund managers.

The RFP asks potential Fund Managers to target the ‘sectors of the future’, as it calls them. These include life sciences, low carbon, digital and advanced manufacturing. These sectors must become successful in order for the Government’s industrial strategy set out in New Industry New Jobs, and will also create the skilled jobs as the country emerges from the recession. The Proposals also ask Fund Managers how they will raise money from private sector investors to create the largest technology Fund in Europe.

Success Will Create Jobs

The Fund is run by Minister for Science and Innovation, Lord Drayson. It aims to drive economic growth and create jobs by investing in technology-based businesses with high growth potential. If successful, the new fund will focus on investment in growing small businesses as well as start-ups and spin-outs in strategically important UK sectors including digital and life sciences, advanced manufacturing and clean technology.

The Prime Minister announced the fund at the end of June as part of the Government’s strategy for Building Britain’s Future. Both the Department for Business Innovation and Skills, Energy and Climate Change and Health, will invest £150 million into the scheme, along with private sector investment on a pari-passu basis. The Government hopes to leverage enough private investment to create a £1 billion 10 year fund.

The Fund will also safeguard the Government’s record investment in science over the last 10 years by demonstrating the wealth-generation potential of the UK research base. On top of this it will also leverage major private sector investment and boost the venture capital and syndication markets in the UK at a time when they are most vulnerable.

Today, a seminar will be held in the City for potential investors and Fund of Fund managers to explain the Governments objectives and clarify the process for setting up the fund.

What Do You Think?

We would love to know your thoughts and opinions. Leave your comments here.

Bookmark Us
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google
  • Reddit
  • StumbleUpon
  • TwitThis

Our Random Articles

More Links