Baroness Vadera (Labour)

The UK Innovation Investment Fund, announced in June 2009, will be developed to provide an additional boost for high-growth, high-technology businesses struggling to raise equity finance, alongside existing national equity interventions. The Government have committed £150 million with the aim of attracting significant private sector investment into a fund of funds, to invest into underlying specialist technology venture capital funds including digital technologies, life sciences, clean technology and advanced manufacturing.

Regional venture capital funds (RVCFs), launched in 2002, were designed to increase the amount of equity investment available to SMEs in amounts up to £500,000 to SMEs that demonstrate growth potential. From a total fund size worth £250 million, £133 million has been invested in 356 companies. This includes a government commitment of nearly £75 million which has been fully drawn down. The Department for Business, Innovation and Skills is currently undertaking an interim assessment of the performance of the RVCFs. This is due to report in autumn 2009.