Innovation investment fund takes shape
1 min read
The government's Department for Business, Innovation and Skills (DBIS) is taking the next step in setting up the UK Innovation Investment Fund (UK IIF) -- a venture capital fund of funds to support the UK's technology companies.
Capital for Enterprise Ltd will release the Request for Proposals (RFP) for prospective Fund of Fund managers for the UK IIF. The RFP is a key milestone in delivering the Fund as it sets out the parameters for the fund and details the information expected from prospective Fund of Fund managers.
The RFP will ask potential Fund Managers to target the sectors of the future, such as life sciences, low carbon, digital and advanced manufacturing. Success in these sectors is key to the Government's industrial strategy set out in New Industry New Jobs, and will create the highly skilled jobs as Britain emerges out of the global downturn. The RFP will also ask Fund Mangers how they will raise money from private sector investors to create the largest technology Fund in Europe.
The UK Innovation Fund was spearheaded by Lord Drayson, Minister for Science and Innovation, to drive economic growth and create jobs by investing in technology-based businesses with high growth potential. The new fund will focus on investing in growing small businesses, start-ups and spin-outs, in strategically important UK sectors including digital and life sciences, clean technology and advanced manufacturing.
The Fund was announced by the Prime Minister on 29 June as part of the Government's strategy for Building Britain's Future. The Departments for Business Innovation & Skills, Energy and Climate Change and Health will invest £150 million alongside private sector investment on a pari-passu basis. It is the Government's ambition to leverage enough private investment to create a £1 billion 10 year fund.
The UK Innovation Fund will safeguard the Government's record investment in science over the past decade by demonstrating the wealth-generating potential of the UK research base. It will leverage substantial private sector investment and will boost the venture capital and syndication markets in the UK at a time when they are most vulnerable.
A seminar for potential investors and Fund of Fund managers has been arranged to explain the Government's objectives and to clarify the process for setting up the fund. The seminar will take place in the City on Thursday (6 August).
