Venture funds to plough millions into electronics

Venture funds to plough millions into electronics
Polital Correspondent Chancellor Gordon Brown has launched three new venture capital funds which will help pump millions of pounds into the electronics industry and help UK start-ups. Electronics is one of the key targets of the ?240m cash boost; other industry sectors for which the cash is earmarked are computers, communications and biotechnology. Brown said that the US puts around 40 per cent of its venture capital into these sectors – more than double the proportion of the EU – while putting three times more per head into electronics and IT. This is a key reason why the US has some of the most dynamic and innovative companies in the world. Of the ?240m, half will be used for a regional development fund administered from Manchester and Birmingham as well as London which is intended to be a blueprint for similar operations in the remaining 14 EU countries. A second ?100m fund, targeted specifically at start-up and fledgling firms in electronics, IT and biotechnology will be run by venture capital company Advent. The third ?20m Midland Enterprise Funds will be raised by the Midland bank and the European Investment Bank. A Treasury spokesman said the precise break-up of the funds investment would be a matter for their trustees.


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