[Guardian UK] — UK government plans to launch a £1bn emergency venture capital fund in a bid to throw a lifeline to technology start-up firms. Backed by the new science and innovation minister Lord Drayson, it will form the centerpiece of a remarkable shift in industrial.

Guardian.co.uk reported:

Many ‘pre-revenue firms’ are facing a battle for survival as they struggle to get finance. There are fears that the doubling of government funding for scientific research at universities, which has led to an increased number of spin-outs in IT, biotech, nanotech and green technologies, will count for nothing if money is not quickly distributed to them.

There are hopes that the plan will be formalised early in the new year. It could be the most significant direct investment in new technology firms since the post-war Labour government created 3i to provide risk capital to growing businesses.

Read more