The government is to inject £400m into venture capital funds as part of its plans to back business, the Chancellor said in today’s Autumn Statement
Philip Hammond said the Treasury would lead a review to identify barriers to access to long-term finance for growing firms, supported by an advisory panel led by private equity tycoon Sir Damon Buffini.
The British Business Bank will invest an additional £400m venture capital funds to unlock up to £1bn of new investment in innovative firms planning to scale up.
Some £325m will be provided between now and the end of the current parliament, with a further £75m slated for 2020-21.
‘I am taking a first step to tackle the longstanding problem of our fastest growing technology firms being snapped up by bigger companies, rather than growing to scale,’ Hammond said.
Richard Godmon, tax partner at Menzies said: ‘The government wants to encourage talented start-ups to commercialise their activity here in the UK. This means having a long-term strategy backed by the right kind of finance. This funding package to underpin venture capital investment through the British Business Bank will help to achieve this.’