Government Lifeline for Hi-Tech Business
NESTA today welcomes the Government’s announcement of a £750million investment fund to support high potential technology businesses.
NESTA (National Endowment for Science, Technology and the Arts) which has the largest portfolio of pre-revenue high tech businesses in the UK has worked with the Government to design such a Fund. In a report released earlier this week, NESTA urged the Government to support the UK’s innovative and fast growing companies in sectors including biotech, cleantech and digital media. It warned that a failure to do so would cost the UK an annual £44bn in lost revenue.
Responding to the announcement in today’s Budget, NESTA’s Chief Executive, Jonathan Kestenbaum said:
“Today the Government took a vital step on the road to recovery and the future looks a lot brighter for the UK’s entrepreneurs. The Fund will give a new vibrancy to the UK’s technology market and will bring about deep and lasting change to our economy’.
Jonathan Kestenbaum continued:
“As the fund gets designed, it’s vitally important that a proportion is allocated to high-potential early stage technology businesses. Innovative new firms are central to the UK’s future economic prosperity”.
Jon Moulton, founder of venture capital fund Alchemy and an angel investor said:
“I am delighted that investors and entrepreneurs alike now have the confidence to develop technologies for which there will be a long-term future”.
The UK has the third largest pharmaceutical industry in the world; it currently has the second largest biotech sector and the world’s largest creative sector relative to GDP. The combined effect of long-term consumer trends and government action will create enormous demands in green technologies. Government support announced today will give the UK a head-start in building future world-beating companies.
Jonathan Kestenbaum concluded:
“Recessions are times to take bold action. I am pleased that the Government has acted on our recommendations to invest in the UK’s growth sectors to unlock future growth. The £750million investment fund will be critical in sustaining the UK’s global position in these sectors.”