Feeds

SoS hits out at VCs

No time to be cautious, says Mandelson

  • alert
  • submit to reddit

The essential guide to IT transformation

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. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?