Feeds

SoS hits out at VCs

No time to be cautious, says Mandelson

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Peter Mandelson has slammed venture capitalists and pension funds for not investing more in hi-tech start-ups. The Secretary of State for Trade and Industry said unless more cash is pumped into these services it could jeopardise the UK's future economic prosperity. Speaking at the British Venture Capital Association (BVCA) annual dinner, Mandelson called for more finance to be invested in high-tech start-up companies. "It is clear that we need to finance more of these innovative, high-tech start ups and see them grow into the dynamic, world beating companies of the future," he said. "But I am particularly concerned that the pension funds and others maybe overly cautious when it comes to venture capital and investing in innovative, early stage companies." In the US, more than five per cent of pension fund money goes into venture capital. In the UK, that figure is just 0.75 per cent. As a result, around 60 per cent of the money raised by UK-based venture capital comes from America. BVCA chairman Clive Sherling said the minister was right to draw attention to the problem. And he agreed with Mandelson that pension funds should do more to help new companies. While the rhetoric from the secretary of state is broadly welcomed, some industry insiders have said that if the government is serious about this, it should offer tax breaks to investors. Mandelson has suggested that he is looking into the issue. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.