Backing the future

It's generally accepted that start up technology companies are going to be a significant part of the UK's future economic success. Yet help for these companies is often absent and there seems to be a continuing lack of funding between early stage investment and the 'full on' backing of the big players. Much of this is to do with impatience. But investment in start ups is, inevitably, a longer term process than meets the instant gratification requirements of modern investors. So the ELC has been pressing Government to do something about it and it appears the pressure has brought results in the shape of the UK Innovation Investment Fund. Money will come from the Department for Business Innovation and Skills, the Department of Energy and Climate Change and the Department of Health, each contributing £150million over an unspecified period. However, as with everything Government related, all is not quite as it seems. Although pitched as a £1billion fund, that figure is the target and may not be reached for a decade. And it requires an equal contribution from the private sector; again, something that may not be easy to achieve in the short term. Meanwhile, there's no indication of how the funds might be applied. So we can agree with ELC chairman Harry Tee when he says that it's good to know that Government is listening. But the Government isn't the only body that needs to listen: the financial sector must take a longer term position.