Corporate financiers in Wales have welcomed the UK government's planned £1bn Innovation Fund, but have concerns about how it will work. The government will put £150m into the early stage technology fund and hopes to raise a further £850m from venture capital firms. A single fund management firm, which has not been chosen yet, will run the fund, which has won the support of the British Venture Capital Association.
Nicola McNeely, partner at Capital Law, said support for venture capital investment would be helpful in the current climate, but added: "Businesses need commercial decisions fast, and investments need to be delivered on time and on fair terms. That is where the difficulties may arise."
Gambit Corporate Finance partner Frank Holmes said: "This initiative is positive, but the balance is private sector dependent when investors are very cautious about new investments and protective about existing ones. We hope Wales' indigenous technology companies will be able to access the selected fund manager, which is likely to be outside the principality."
