The Prime Minister
announced today that £200m from the UK Innovation Investment Fund
(UKIIF) will be used to benefit life sciences, digital and
advanced manufacturing businesses.
This follows an announcement last month that £125m from the UKIIF
will be invested in low carbon and clean tech sectors, bringing
the total UKIIF investment to £325m.
The UKIIF today completed first closing on this £200m UK Future
Technologies Fund with fund managers the European Investment Fund
(EIF). EIF have raised £100m to match Government funding. They
will now make their first investments in UK venture funds,
investing in technology-based businesses where there are
significant growth opportunities, driving the UK economy forward
and creating highly skilled jobs.
Speaking to the Global Investment Conference, Prime Minister
Gordon Brown said:
“Our new £325 million Innovation Investment Fund – launched as
part of Building Britain’s Future – shows our commitment to the
industries and the technologies that will create the skilled jobs
of the future.
“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.”
Science and Innovation Minister Lord Drayson said:
"Despite a tough market, the UK Innovation Investment
Fund goes from strength to strength. Private funds have matched
the Government's investment and money can now flow into
promising technology companies. This is just the boost these
companies need as the economy returns to growth."
The UK Innovation Investment Fund was announced last June by the
Prime Minister as part of the Government’s strategy for Building
Britain’s Future. The European Investment Fund and Hermes Private
Equity and were each confirmed as fund of fund managers for two
separate funds of funds. Backed by £150m investment by the
Department for Business, Innovation and Skills, the Department of
Energy and Climate Change and the Department of Health, it has
already attracted private investment to more than match this
amount with the total first closing of £325m.
Chief Executive of the European Investment Fund, Richard Pelly
said:
“The leveraging of the UK government’s funds and expertise
coupled with our experience in the EU venture capital market will
help us to support the next generation of high growth, high tech
businesses”.
The Government appointed Capital for Enterprise Limited (CfEL) to
advise on the development of the UKIIF and to lead the process of
selecting and appointing the investment fund managers. CfEL
negotiated the fund with EIF as part of the Government’s
continuing drive to support young British businesses.
The UKIIF will target small growing businesses, start ups and
spin outs including pre-profit and pre-revenue stages of development.
Evidence shows that venture capital-backed companies
significantly out perform other companies in terms of their
ability to create wealth and generate the spill-over benefits
including export performance and the creation of high skilled jobs
vital to the economy. *
Notes to Editors
1. The UK Innovation Investment Fund was launched on 29 June 2009.
Hermes Private Equity and EIF were announced as the two fund of
fund managers for the UKIIF on 9 December 2009.
2. EIF will be launching a new fund of funds, the UK FTF LP
(which stands for the UK Future Technology Fund) using £100m of
Government funding alongside commitments of £100m from private
sector investors, creating an initial pool for investment of £200 million.
3. * Source – British Venture Capital Association DATA 2008 – the
economic impact of private equity and VC in the UK.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is
building a dynamic and competitive UK economy by: creating the
conditions for business success; promoting innovation, enterprise
and science; and giving everyone the skills and opportunities to
succeed. To achieve this it will foster world-class universities
and promote an open global economy. BIS - Investing in our future.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk