A survey conducted by Populus on behalf of the British Private Equity and Venture Capital Association (BVCA) has found that many venture capital-backed businesses will have difficulty attracting fresh capital in 2009.
The BVCA believes that with Government support this situation can be averted and these businesses, many of which will form the cornerstone of economic recovery, can fulfill their obvious potential.
Simon Walker, Chief Executive of the BVCA, said: 'There is a golden opportunity for entrepreneurial young businesses right now. The last 10 years have produced a stable of innovative UK start-up companies, producing world-leading products and services. Many VC firms have raised significant funds in recent years and are using these funds actively to support existing portfolio companies through recession. For new entrepreneurial companies to emerge as the next generation's global leaders, the sector requires more capital at just the time when institutions are unable to commit new funds. Government can assist by exploring ways to encourage greater institutional investment, potentially acting as a catalyst for this investment.'
For further information please contact:
Tim Hames, BVCA +44 (0) 20 7025 2968
Nathan Williams, BVCA +44 (0) 20 7025 2967
Notes to Editors
1. The BVCA - The British Private Equity and Venture Capital Association, is the industry body for the UK private equity and venture capital industry. The BVCA has over 400 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
