The government is set to pump £200 million from the UK Innovation Investment Fund into technology businesses, following the completion of an initial round of fundraising.
The UKIIF completed the first closing of the UK Future Technologies Fund, £100 million of which comes from government funding and the rest from private capital.
The fund will now make its first investments in UK venture funds, investing in technology-based businesses which have high growth potential and that will create opportunities for skilled workers.
The move follows an announcement last month that £125 million from the UKIIF would be invested in low carbon and clean technology sectors.
Speaking at the Global Investment Conference, Prime Minister Gordon Brown said: “This fund, seeded by the Government, is bringing private venture capital to growing enterprises. It is already providing £125 million of funding to high tech, low carbon businesses. From today, a further £200 million will be available for life sciences, digital and advanced manufacturing.”
The UKIIF was announced last June as part of the government’s Building Britain’s Future plan. The fund will target small growing businesses, start-ups and spin outs.