It's a tough time to be starting a company, no matter how brilliant the proposed product or service may be.
The private equity companies have near enough closed up shop. Two of the biggest venture capital outfits, 3i and Carlyle have announced job cuts and 3i has closed down its early stage venture capital unit. It's those companies in what is known as the pre-revenue stage which are most at risk of being left to wither on the vine.
So it is encouraging for prospects in the UK that the government plans to launch a £1bn fund to support technology start-ups. Not everyone approves of government intervention in industry, but if it was ever needed it's needed now. The present UK government has also grasped that the UK has developed a much more entreprenuerial culture in the past decade. Those most at risk tend to be companies established by an individual or group who have just been made redundant and are want to establish their own business, and the university spin-off companies which have proved to be some of the most successful start-ups.
It is hoped to have the fund up and running in the New Year.
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