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- In the UK, the government is planning to launch a £1bn emergency venture capital fund in an effort to give technology start-up firms a life-line.
- The effort is officially being backed by new science and innovation minister Lord Drayson.
- The National Endowment for Science, Technology and the Arts (Nesta) discussed the idea in detail on Downing Street this past Thursday morning between Gordon Brown, Lord Drayson and Lord Sainsbury.
- The plan is to be set into motion early in the new year as the government fears that without doubling the money given to places like scientific research @ Universities will result in a move backwards in innovation for IT, biotech, nanotech and green technologies industries.
- This would be the most significant direct investment in the new technologies industries since the Labour government created 3i to provide risk capital to growing businesser after the post-war.
- The National Earth Science Teachers Assn. chief executive Jonathan Kestenbaum is quoted as saying ‘In benign economic conditions, a decision like this might take a long time. But now I think there’s a consensus in government and beyond that something needs to be done quickly. Our sense is there is real momentum.’
- The fund will seek money from private equity, universities and mainstream business. Recently in the UK, private equity for early stage firms has redirected their funds away from new technologies. This will be a major effort to get them to re-focus their efforts.
- Will something like this happen in the US? Probably not since we have larger issues at the moment concerning the auto industry and financial markets. However, the proposed bailout could force a jump-start in certain areas (although most likely it won’t), such as redirecting the auto manufacturers focus on green technologies like Light Rail Systems, fuel efficient vehicles and alternative fuels.
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