Innovation fund to choose managers by year end

Managers for the UK government’s venture capital fund of funds will be chosen by December, according to plans released by Capital for Enterprise (CfE), a government subsidiary.

Those chosen to manage money from the UK Innovation Investment Fund will be required to invest in technology businesses at all stages of development, from start-ups and spin-outs to established companies with high growth potential.

Proposals should have a ten-year time horizon, though the government wants to generate a ‘significant yet appropriate’ level of activity within the next two years, according to CfE.

CfE’s selection criteria will include the track record of the management team, return expectations, value for taxpayers’ money, investment strategy, and the ability of a manager to attract further private sector investment.

The government will invest £150 million in one, two or three funds of funds, with the aim of building this commitment to as much as £1 billion by attracting private sector investments.