£30m tech cash hailed
A LOCAL technology guru has welcomed the Government’s announcement of a new £30m fund to invest in technology companies.
Announced by Business Secretary Peter Mandelson this week, the new fund will invest development capital in information technology, electronics and instrumentation firms looking to expand their business.
Mike Pitkethly of Sedgefield-based Roar Particles, which develops technology to identify terrorists and drug users, said the move was “a step in the right direction” as the venture capital market - a prime source of funding for SMEs - was currently “very, very tight”.
He said: “It’s certainly good news but we need to wait and find out how the money is going to be invested.
“More funds might be needed as £30m doesn’t go a long way. In the current climate, venture capitalists are a lot more wary about which businesses they invest in.”
An expert in the application of new technologies, Mr Pitkethly also said greater investment in corporate research labs would help to improve the region’s technology infrastructure.
The new fund was awarded to TTP Ventures by Capital for Enterprise Limited (CfEL), the independent company which manages the Department for Business's SME investment programmes. In the last six years CfEL has created more than 22 funds which have delivered around £600m of equity finance to UK SMEs.
Mr Mandelson said: “It is crucial small and medium sized firms looking to invest in and grow their businesses are able to access the finance they need.”
